Is your money part of this ₹16,649 crore? Government makes a major disclosure regarding unclaimed funds with LIC and EPFO..

EPFO & LIC Unclaimed Funds: If you have ever changed jobs or forgotten to collect the maturity amount of an old LIC policy, this news is highly relevant to you. During the Monsoon Session of Parliament, the government presented official figures in the Lok Sabha regarding unclaimed and inoperative funds held by the country's two largest financial institutions: the Employees' Provident Fund Organisation (EPFO) and the Life Insurance Corporation of India (LIC).

Responding to a question raised by MP Dr. MK Vishnu Prasad in the Lok Sabha, Union Minister of State for Finance Pankaj Chaudhary stated that, as of March 31, 2026, a total amount exceeding ₹16,649 crore remains unclaimed across LIC's unclaimed policy funds and EPFO's inoperative accounts. Here is a breakdown of the funds held by each institution and how you can claim them.

₹7,318 crore remains unclaimed with LIC

According to the information provided in Parliament, LIC holds a total of ₹7,318.50 crore in unclaimed funds as of March 31, 2026.

Principal unclaimed amount: ₹5,564.55 crore (dues payable to policyholders).

Accrued interest/income: ₹1,753.95 crore (interest accumulated on the unclaimed amount over time).

Why do funds become unclaimed?

Funds are classified as unclaimed when policyholders or their nominees fail to collect the payout due upon policy maturity, survival benefits, or death claims.

How can LIC policyholders locate their funds?

Visit the official LIC website (www.licindia.in).
Click on the 'Unclaimed Amounts of Policy Holders' section.
Check the status by entering your name, date of birth, PAN card details, and policy number.
EPFO holds ₹9,330 crore, yet has zero 'unclaimed' accounts! Citing the Ministry of Labour and Employment, the Minister of State for Finance clarified that, under the rules, no account in the EPFO ​​is classified as 'unclaimed.' Instead, accounts that have not received contributions for a long period are categorized as 'inoperative accounts.' A total of ₹9,330.56 crore is held in these inoperative accounts.

Is this money safe? Yes; whenever a subscriber or their legal heir submits a claim with the requisite documents, the funds are promptly released to them. The government has clarified that there is currently no proposal to utilize the funds from inoperative PF accounts for any other purpose.

Measures taken by the government and institutions to return unclaimed funds:

A. EPFO’s auto-settlement pilot project (up to ₹1,000): The EPFO ​​has launched a pilot project to directly transfer funds from Aadhaar-verified inoperative accounts. Under this initiative, unclaimed amounts of ₹1,000 or less are being transferred directly to the member's Aadhaar-linked bank account without the need for any new forms or claims. Upon successful implementation, this process will be extended to accounts with higher balances.

B. LIC’s 10-year rule and door-to-door campaign

Senior Citizen Welfare Fund (SCWF): In accordance with IRDAI regulations, insurance claims that remain unclaimed for more than 10 years are transferred to the 'Senior Citizen Welfare Fund' annually before March 1st.

Assistance from credit bureaus and 'Bima Sakhis': LIC has engaged credit bureau agencies to update the old addresses and mobile numbers of policyholders. Additionally, 'Bima Sakhis' (women agents), along with regular agents and development officers, are conducting door-to-door visits to assist in the settlement of claims.

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.