LIC's unclaimed funds rise to Rs 7,318 crore; EPFO reports Rs 9,330 crore in inoperative PF accounts

New Delhi: The Life Insurance Corporation of India (LIC) was holding Rs 7,318.50 crore in unclaimed funds 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 Parliament on Monday.

Replying to separate questions in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary clarified that although LIC continues to carry thousands of crores in unclaimed policyholder funds, the EPFO does not classify any provident fund accounts as "unclaimed" under its regulations.

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LIC holding over Rs 7,300 crore in unclaimed funds

According to the minister, the total amount of unclaimed money with LIC stood at Rs 7,318.50 crore as on March 31, 2026.

The figure includes Rs 1,753.95 crore earned as income on the unclaimed amount over time, indicating that the funds continue to generate returns while remaining unpaid to policyholders or their beneficiaries.

Unclaimed amounts in life insurance typically arise when policyholders or nominees fail to claim maturity proceeds, survival benefits, death claims or other policy-related payments despite the amounts becoming due.

The government did not specify the number of policyholders or beneficiaries whose funds remain unclaimed.

EPFO has no 'unclaimed' accounts, says government

On provident fund deposits, Chaudhary cited information provided by the Ministry of Labour and Employment to clarify that EPFO does not maintain any accounts classified as "unclaimed."

Instead, certain provident fund accounts are categorised as inoperative accounts under the provisions of the Employees' Provident Fund Scheme.

According to the government, the total amount lying in such inoperative EPF accounts stood at Rs 9,330.56 crore as on March 31, 2026.

The minister said these accounts were classified under Paragraph 72(6) of the EPF Scheme, 1952, which has since been replaced by Paragraph 55 of the EPF Scheme, 2026.

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Difference between unclaimed and inoperative accounts

The government emphasised that inoperative accounts are not the same as unclaimed accounts.

An EPF account may become inoperative when contributions stop for an extended period or when the member does not transfer or withdraw the accumulated balance after changing employment. However, the money remains payable to the member or eligible beneficiaries whenever a valid claim is submitted.

Similarly, LIC's unclaimed funds also remain payable to policyholders or their legal heirs after verification of claims.

Focus on tracing rightful beneficiaries

The disclosures come amid continued efforts by financial institutions and regulators to encourage policyholders, employees and their nominees to verify old accounts and claim pending amounts.

Over the years, both LIC and EPFO have launched digital search facilities and awareness campaigns to help customers trace forgotten policies and provident fund accounts. However, the latest figures indicate that thousands of crores of rupees continue to remain idle because eligible claimants have either not come forward or have been unable to complete the claim process.

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