LIC Holds ₹7,318 Crore In Unclaimed Funds

The Life Insurance Corporation of India (LIC) has ₹7,318.5 crore in unclaimed funds as of March 31, 2026, according to the Finance Ministry.

This amount includes ₹5,564.5 crore of unclaimed policyholder money and ₹1,753.95 crore as accrued income generated on those funds.

The Employees’ Provident Fund Organisation (EPFO) has ₹9,330.5 crore parked in inoperative EPF accounts, where contributions have ceased and the accounts remain inactive.

To facilitate quicker settlement of small balances, EPFO has launched a pilot project to automatically credit funds of up to ₹1,000 in eligible inoperative accounts linked with Aadhaar-verified beneficiaries.

The initiative aims to reduce the number of dormant accounts and enable the seamless transfer of small balances to rightful account holders.

The government has ruled out any move to divert idle provident fund balances for other purposes, stating that there is no proposal to utilise money lying in inoperative EPF accounts for any purpose other than payment to eligible subscribers or their beneficiaries.

The clarification comes amid continued scrutiny over unclaimed financial assets held by insurers and retirement fund managers.

The government has maintained that such funds remain payable to their rightful owners and that efforts are underway to improve identification, verification and settlement through digital processes, including Aadhaar-based authentication.

The EPFO is among the world’s largest social security organisations, with over 80 million active members and 8 million pensioners.

The government has been introducing continuous reforms in EPFO to expand coverage, simplify procedures and improve service delivery.

The issue of unclaimed funds is significant, as it affects the financial well-being of individuals and families who are entitled to these amounts.

The government’s efforts to improve the settlement process and reduce the number of dormant accounts are crucial in ensuring that these funds reach their rightful owners.

In conclusion, the issue of unclaimed funds held by LIC and EPFO is a significant one, and the government’s efforts to address this issue are ongoing.

The introduction of digital processes and the launch of pilot projects to settle small balances are steps in the right direction, and it is hoped that these efforts will lead to a reduction in the number of dormant accounts and an increase in the number of people receiving their rightful entitlements.