Unclaimed money with LIC and EPFO has reached significant levels, according to the latest figures shared by the Centre. (Image generated using AI)
LIC, EPFO unclaimed money: The Central government has released the latest data on unclaimed money lying with the Life Insurance Corporation of India (LIC) and the Employees’ Provident Fund Organisation (EPFO). LIC was established on September 1, 1956, after the Life Insurance Corporation Act was passed on June 19, 1956, while EPFO was set up in 1952.
LIC was created to make life insurance accessible to people across the country, especially in rural areas, by providing financial protection at an affordable cost. EPFO, meanwhile, was established to manage provident fund, pension and insurance schemes for workers employed in the organised sector.
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During the ongoing Monsoon Session of Parliament, Lok Sabha MP Dr MK Vishnu Prasad asked the government to provide details of the total amount of unclaimed money and deposits lying with the LIC and the EPFO. He also sought information on the steps taken by LIC and EPFO to identify and return such unclaimed funds to account holders, nominees or legal heirs.
The MP further asked whether the government has any proposal to utilise these unclaimed funds after they remain unclaimed for a specified period of time.
Responding to the query, Union Minister of State (MoS) for Finance Pankaj Chaudhary said that, under the Insurance Regulatory and Development Authority of India (IRDAI) Master Circular on Operations and Allied Matters of Insurers dated June 19, 2024, any amount that remains unclaimed for more than 10 years must be transferred to the Senior Citizens’ Welfare Fund (SCWF), which is managed by the Ministry of Social Justice and Empowerment.
“Every year, LIC is transferring the eligible amount on or before 1st March. As informed by Ministry of Labour and Employment, at present there is no proposal for utilisation of these funds for any other purposes,” Chaudhary said.
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LIC unclaimed amount: Steps taken to identify and return money to policyholders
According to the minister’s written reply in Lok Sabha on July 20, the total amount of unclaimed money with LIC stood at Rs 7,318.50 crore as of March 31, 2026. This includes Rs 5,564.55 crore belonging to policyholders and Rs 1,753.95 crore as income accrued on these unclaimed amounts.
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EPFO unclaimed amount: Steps taken to identify and return money
On the EPFO unclaimed amount, the Union Minister said that, according to the Ministry of Labour and Employment, there are no unclaimed EPFO accounts. However, some accounts are classified as inoperative accounts.
“The total amount lying in the inoperative EPF accounts, under para 72(6) of EPF Scheme, 1952 (now replaced by para 55 of EPF Scheme, 2026), as on 31.03.2026 is ₹ 9330.56 crores,” he added.