Unclaimed funds with LIC cross Rs 7,318 crore
New Delhi, July 20
State-owned Life Insurance Corporation of India has Rs 7,318.5 crore in unclaimed funds as of March 31, 2026, the Finance Ministry informed Parliament on Monday.
In a written reply to a question in Parliament, the ministry said the accumulated amount includes Rs 5,564.5 crore of unclaimed policyholder money and Rs 1,753.95 crore as accrued income generated on those funds.
Separately, the government clarified that the Employees' Provident Fund Organisation (EPFO) does not maintain any "unclaimed" accounts. However, it said Rs 9,330.5 crore is currently parked in inoperative EPF accounts, where contributions have ceased, and the accounts remain inactive.
To facilitate quicker settlement of small balances, EPFO has launched a pilot project to automatically credit funds of up to Rs 1,000 in eligible inoperative accounts linked with Aadhaar-verified beneficiaries.
The initiative aims to reduce the number of dormant accounts and enable the seamless transfer of small balances to rightful account holders.
The government also ruled out any move to divert idle provident fund balances for other purposes.
Responding to a query in Parliament, the Finance Ministry said there is no proposal under consideration to utilise money lying in inoperative EPF accounts for any purpose other than payment to eligible subscribers or their beneficiaries.
The clarification comes amid continued scrutiny over unclaimed financial assets held by insurers and retirement fund managers.
The government has maintained that such funds remain payable to their rightful owners and that efforts are underway to improve identification, verification and settlement through digital processes, including Aadhaar-based authentication.
The Employees' Provident Fund Organisation, with over 80 million active members and 8 million pensioners, is among the world's largest social security organisations. The Employees' State Insurance Corporation (ESIC) provides healthcare and social security benefits to over 150 million insured persons and their dependents.
The government has been introducing continuous reforms in EPFO and ESIC to expand coverage, simplify procedures and improve service delivery.
— IANS
Reader Comments
Rs 9,330 crore in inactive EPF accounts too! That's our hard-earned money. I'm glad the government is piloting auto-credit for small balances up to Rs 1,000. But they should also do more awareness campaigns. Many workers change jobs and forget to transfer their PF. Digital processes and Aadhaar-based verification is a good step forward. 👏
I appreciate that the government ruled out diverting idle PF funds for other purposes. That would have been disastrous for workers' trust. However, I think LIC and EPFO should proactively publish lists of unclaimed amounts on their websites with basic details. People might recognize their own or family members' policies. Transparency is key!
Ye sab unclaimed funds ka issue bohot purana hai. I remember my grandfather had an LIC policy we didn't know about until an agent told us. The government needs to simplify the claim process. Currently, it's too bureaucratic and time-consuming. Digital initiatives are good but they need to reach rural areas too where most policyholders live.
Honestly, the amount is huge but let's also think about how many families might not even know about these policies. My friend's father passed away and they found an old LIC bond only after 5 years! The government should consider a centralized unclaimed assets portal where you can search by name or Aadhaar. It would be a game-changer. 🎯
Good to see EPFO is taking steps with auto-credit for small balances.
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