Speculation regarding unclaimed LIC and EPFO funds has been put to rest! The government has clearly revealed the full truth..
The government has clarified that there are no plans to divert unclaimed funds held by the Life Insurance Corporation (LIC) or deposits in inoperative accounts of the Employees' Provident Fund Organisation (EPFO) for any purpose outside the existing framework. While providing this information in Parliament on Wednesday, the Ministry of Finance stated that the government's primary focus is on returning the money to the people, rather than utilizing these funds for other activities.
**How much money is held by LIC and EPFO?**
According to the government, unclaimed funds amounting to ₹7,318.5 crore were held by LIC as of March 31, 2026. Meanwhile, ₹9,330.56 crore was lying in inoperative EPFO accounts. Inoperative accounts are those where no new contributions have been made and no account operations have taken place for an extended period.
**Emphasis on returning funds to the public**
The Ministry of Finance stated that both LIC and EPFO are making continuous efforts to reach out to beneficiaries. Measures include the use of digital platforms, public awareness campaigns, and the simplification of the claim settlement process.
**Aadhaar verification simplifies claims**
The government noted that the EPFO is also facilitating the auto-settlement of claims for small, Aadhaar-verified accounts. This provides relief to employees whose small balances had remained idle in accounts for a long time. Additionally, special drives are being conducted to identify and contact beneficiaries.
**Government puts rumors to rest**
Recently, there had been speculation on social media that the government might use unclaimed LIC and EPFO funds for other purposes. The government has put these speculations to rest with its statement in Parliament. It reiterated that no changes to the existing legal framework are proposed and that the priority remains ensuring eligible individuals receive their money back as soon as possible.
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