More than ₹7,318 crore of policyholders' money remains unclaimed with the Life Insurance Corporation of India (LIC), while ₹9,330.56 crore is lying in inoperative employees' provident fund (EPF) accounts, the
Union government informed the Lok Sabha on Monday.
Replying to an unstarred question by Congress member of Parliament (MP) Dr MK Vishnu Prasad, Union minister of state for finance Pankaj Chaudhary said LIC held ₹5,564.55 crore as unclaimed policyholder amounts as of 31 March 2026, while another ₹1,753.95 crore represented income accrued on these unclaimed funds, taking the total to ₹7,318.50 crore.
On the EPFO deposits, the minister clarified that there are no unclaimed EPF accounts. Instead, certain accounts are classified as inoperative accounts under the EPF scheme. As of 31 March 2026, the total amount lying in these inoperative EPF accounts stood at ₹9,330.56 crore.
The government said both LIC and EPFO have been undertaking outreach and awareness initiatives to identify eligible beneficiaries and facilitate the return of unclaimed amounts.
According to the finance ministry, LIC has introduced multiple measures to trace policyholders and nominees. Policyholders can search for unclaimed amounts through LIC's official website using their name, date of birth and PAN details. Branches and divisional offices regularly send letters and SMS reminders to the last known addresses and registered mobile numbers of policyholders seeking claim documents and bank account details for settlement.
LIC has also involved its field force in tracing beneficiaries. Pin code-wise addresses of policyholders are shared with local LIC agents, who visit residences and make enquiries with neighbours, nearby shops and gram panchayats to obtain updated contact details. Development officers and Bima Sakhis have also been engaged to locate policyholders and assist them in settling claims.
To improve tracing efforts, LIC has hired a credit bureau agency to obtain updated addresses and mobile numbers of policyholders and beneficiaries. It also participated in the finance ministry's 'Your Money-Your Right' campaign between October and December 2025, during which camps were organised in every district and awareness banners displayed across 2,048 LIC branches. Cases involving unclaimed money were assigned to marketing officials for follow-up. In addition, LIC continues to publish advertisements across the country in English, Hindi and 13 regional languages to encourage policyholders to claim their dues, the minister said.
For EPFO members, the Union ministry of labour and employment has identified and categorised inoperative accounts based on the availability of know-your-customer (KYC) details. The central board of trustees of EPFO has approved a pilot project for automatic settlement of Aadhaar-verified inoperative EPF accounts with unclaimed balances of ₹1,000 or less. Under the initiative, the amount is credited directly to Aadhaar-seeded bank accounts without requiring members to submit fresh claims or additional documentation. The government said the project is currently underway and may later be expanded to higher-value account slabs after due diligence.
EPFO has also been conducting outreach programmes through social media and organising Nidhi Aapke Nikat (NAN) 2.0 camps to spread awareness among employers and employees about EPF services and inoperative accounts.
On the utilisation of unclaimed funds, the government said the insurance regulatory and development authority of India (IRDAI), through its master circular on operations and allied matters of insurers dated 19 June 2024, requires insurers to transfer unclaimed amounts that remain unclaimed for more than ten years to the senior ctizens’ Welfare Fund (SCWF) managed by the ministry of social justice and empowerment. LIC transfers the eligible amounts every year on or before 1st March.
However, the government clarified that there is no proposal at present to utilise the money lying in inoperative EPF accounts for any other purpose.
You may also want to read…
DMFs vs FPIs: Beyond the Rhetoric
Debashis Basu,
03 July 2026
For much of the past two years, a comforting story has taken hold in India's stock market. Foreign portfolio investors (FPIs) have sold relentlessly; yet, share prices have held up. Domestic mutual funds (DMFs), fuelled by a torrent...
NSE Warns Investors against 2 Unregistered Stock Market Tipsters Offering Assured Returns
Moneylife Digital Team
01 July 2026
National Stock Exchange (NSE) has issued fresh investor advisories cautioning the public against dealing with two individuals, Goutam Das and Raj, allegedly offering illegal stock market tips, assured returns and unauthorised...
SEBI Cancels Registrations of 15 Research Analysts for Non-payment of Renewal Fees
Moneylife Digital Team
30 June 2026
Market regulator Securities and Exchange Board of India (SEBI) has cancelled the registration certificates of 15 research analysts (RAs), including individuals and entities, after they failed to pay the mandatory renewal fees required...
NSE Warns Investors against Trade Mitra, MarketX Telegram Channel Offering Illegal Dabba Trading Services
Moneylife Digital Team
30 June 2026
The National Stock Exchange (NSE) has cautioned investors against dealing with an unregistered entity operating under the name Trade Mitra and a person identified as 'Vihan', alleging that they are luring investors with promises of...
