LIC and EPFO Unclaimed Funds: Here's How to Check If You Have Money Waiting to Be Claimed
Millions of Indians invest in life insurance policies and contribute to retirement savings through the Employees' Provident Fund (EPF). However, many people lose track of old policies or inactive provident fund accounts after changing jobs, relocating, or failing to update their records. As a result, thousands of crores remain unclaimed across major financial institutions.
The Central Government has now revealed the latest figures in Parliament, showing that more than ₹16,649 crore is lying in unclaimed insurance funds and inactive EPFO accounts as of March 31, 2026. The disclosure has prompted policyholders and salaried employees to review their financial records and verify whether any amount belongs to them or their family members.
Here's a detailed breakdown of the government's announcement and the steps you can take to check your eligibility.
Government Reveals Latest Unclaimed Fund Data
During the Monsoon Session of Parliament, Minister of State for Finance Pankaj Chaudhary responded to a question in the Lok Sabha regarding unclaimed funds held by the Employees' Provident Fund Organisation (EPFO) and the Life Insurance Corporation of India (LIC).
According to the official statement, the combined value of unclaimed LIC policy funds and inactive EPFO accounts stood at over ₹16,649 crore as of March 31, 2026.
The figures highlight the importance of regularly reviewing insurance policies and provident fund accounts, particularly after job changes, retirement, or changes in contact information.
LIC Holds Over ₹7,318 Crore in Unclaimed Policy Funds
The government informed Parliament that LIC is holding ₹7,318.50 crore in unclaimed policy-related funds.
This amount includes:
- ₹5,564.55 crore representing unpaid policy benefits due to policyholders or nominees.
- ₹1,753.95 crore earned as interest or investment income on those unclaimed amounts over time.
These funds remain with LIC until the rightful claimant or nominee completes the required claim process.
Why Do LIC Policy Amounts Become Unclaimed?
Insurance proceeds usually become unclaimed when policyholders or their nominees do not collect the money after it becomes payable.
Common reasons include:
- Maturity proceeds not claimed after policy completion.
- Survival benefits left uncollected.
- Death claims not filed by nominees.
- Policyholders changing address or mobile numbers without updating records.
- Family members being unaware of an existing insurance policy.
Because of these situations, eligible payments often remain with the insurer for years.
How to Check if You Have Unclaimed LIC Money
LIC allows policyholders and nominees to verify whether any amount is pending against their policy.
To check your status:
- Visit the official LIC website.
- Open the "Unclaimed Amounts of Policy Holders" section.
- Enter the required details such as your policy number, name, date of birth, and PAN or other requested identification.
- Submit the information to view the claim status.
If an amount is available, eligible claimants can initiate the settlement process by submitting the required documents.
EPFO Has ₹9,330 Crore in Inactive Accounts
The Labour and Employment Ministry clarified that EPFO does not classify any account as "unclaimed."
Instead, accounts that stop receiving contributions for a prolonged period are categorized as inactive (inoperative) accounts.
As of March 31, 2026, these inactive EPFO accounts collectively held ₹9,330.56 crore.
Importantly, the government clarified that the money remains secure and can be claimed whenever the member or the legal heir submits a valid application along with the necessary supporting documents.
The government also stated that there is currently no proposal to divert or utilize these inactive EPF balances for any other purpose.
EPFO Launches Auto-Settlement Pilot for Small Balances
To simplify claim settlements, EPFO has introduced a pilot initiative for certain inactive accounts.
Under the pilot:
- Aadhaar-verified inactive accounts with balances of ₹1,000 or less may receive automatic credit directly into the member's Aadhaar-linked bank account.
- No fresh claim application is required for eligible cases.
- If the initiative proves successful, EPFO may consider expanding it to higher-value accounts in the future.
The move is aimed at reducing the number of dormant accounts and ensuring that small balances reach their rightful owners quickly.
LIC's Outreach Efforts to Return Unclaimed Money
LIC has also intensified efforts to reunite policyholders with pending benefits.
Some of the measures include:
- Updating customer contact details with assistance from credit bureau agencies.
- Conducting door-to-door outreach through insurance agents, development officers, and Bima Sakhis.
- Contacting policyholders and nominees to facilitate pending claim settlements.
Additionally, under Insurance Regulatory and Development Authority of India (IRDAI) regulations, insurance claim amounts that remain unclaimed for more than 10 years are transferred to the Senior Citizen Welfare Fund (SCWF). Even after such transfer, eligible claimants can still submit claims through the prescribed process.
Why You Should Check Your Financial Records
If you have changed employers, forgotten about an old EPF account, purchased a life insurance policy years ago, or are a nominee of a deceased policyholder, it may be worthwhile to verify whether any funds remain pending.
Regularly updating nominee details, contact information, Aadhaar, PAN, and bank account details with both LIC and EPFO can help prevent future claim delays and ensure that benefits reach the rightful beneficiaries without unnecessary complications.
