Government Reveals Rs 7,318 Crore in Unclaimed LIC Funds, EPFO Holds Rs 9,330 Crore in Inoperative Accounts
The Government of India has informed Parliament that as of 31 March 2026, Life Insurance Corporation of India (LIC) is holding Rs 7,318.50 crore in unclaimed funds. This includes Rs 5,564.55 crore of unclaimed money belonging to policyholders and Rs 1,753.95 crore earned as income on these unclaimed amounts. The government also clarified that EPFO does not have any “unclaimed” accounts, but it does have inoperative accounts with a balance of Rs 9,330.56 crore.
LIC Is Taking Steps to Return Unclaimed Money
The government said LIC is carrying out several measures to help policyholders and their families claim their unclaimed money. People can check for unclaimed amounts on the official LIC website using their name, date of birth, and PAN details. LIC also sends letters and SMS reminders to policyholders and contacts them through branch offices and agents. In addition, local agents visit the last known addresses of policyholders and even contact neighbours or local authorities to trace beneficiaries. LIC has also hired a credit bureau agency to help locate policyholders and has conducted nationwide awareness campaigns and advertisements in multiple languages.
EPFO Launches Measures for Inoperative Accounts
The Employees’ Provident Fund Organisation (EPFO) has also started initiatives to help members receive money lying in inoperative accounts. EPFO has identified these accounts based on KYC status and has launched a pilot project for Aadhaar-verified inoperative accounts with balances of Rs 1,000 or less. Under this project, the money is directly credited to Aadhaar-linked bank accounts without requiring members to submit fresh claims or documents. EPFO is also conducting awareness programmes and outreach campaigns to inform employees and employers about these accounts.
Unclaimed LIC Money Is Transferred After 10 Years
The government said that under the Insurance Regulatory and Development Authority of India (IRDAI) rules, any LIC amount that remains unclaimed for more than 10 years is transferred to the Senior Citizen Welfare Fund (SCWF), which is managed by the Ministry of Social Justice and Empowerment. LIC transfers the eligible amount to the fund every year before 1 March. The government also clarified that there is currently no proposal to use EPFO’s inoperative account funds for any other purpose.
