LIC Unclaimed Funds Cross Rs 7,300 Crore, EPFO Inoperative Accounts At Rs 9,330 Crore

Unclaimed funds with the Life Insurance Corporation of India (LIC) stood at Rs 7,318.50 crore as of March 31, 2026, while the Employees' Provident Fund Organisation (EPFO) had Rs 9,330.56 crore lying in inoperative provident fund accounts, the government informed the Lok Sabha on Monday.

Replying to a question asked in the Lok Sabha during the Monsoon Session, Minister of State for Finance Pankaj Chaudhary has stated that LIC's unclaimed amount comprised Rs 5,564.55 crore belonging to policyholders and Rs 1,753.95 crore as income accrued on these funds.

The minister clarified that EPFO does not have unclaimed accounts. Instead, certain provident fund accounts are classified as inoperative under the EPF Scheme. The amount lying in these inoperative accounts stood at Rs 9,330.56 crore as on March 31, 2026.

Measures To Trace Beneficiaries

The government has stated that LIC and EPFO are undertaking outreach and awareness initiatives to help eligible beneficiaries claim their dues.

LIC allows policyholders to check for unclaimed amounts through its website using their name, date of birth and PAN. It is also sending letters and SMS reminders to policyholders and following up through its branch and divisional offices to obtain claim documents and bank account details for settlement.

To trace beneficiaries, LIC has also involved agents, development officials and Bima Sakhis. It has engaged a credit bureau agency to locate updated addresses and mobile numbers of policyholders. The insurer also participated in the Finance Ministry's "Your Money Your Right" campaign from October to December 2025 and continues to publish awareness advertisements across the country.

EPFO's Automatic Settlement Pilot

EPFO has identified and categorised inoperative accounts based on the availability of Know Your Customer (KYC) details. It has approved a pilot project to automatically settle Aadhaar verified inoperative accounts with balances of up to Rs 1,000.

Under the pilot, eligible amounts are credited directly to Aadhaar-seeded bank accounts without requiring fresh claims or documentation. The organisation stated that the initiative may be expanded to higher balance categories after due diligence.

Transfer Of Long Pending Amounts

The government has noted that under the Insurance Regulatory and Development Authority of India Master Circular on Operations and Allied Matters of Insurers, amounts that remain unclaimed for more than 10 years are transferred to the Senior Citizen Welfare Fund.

LIC transfers eligible amounts every year before March 1. It also stated that there is currently no proposal to use EPFO's inoperative account funds for any other purpose.