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Unclaimed Money: For some time now, there have been reports suggesting the government might utilize unclaimed funds held by LIC and EPFO ​​for various schemes. The government has now clarified its stance on the matter.

Unclaimed Money: There has been considerable discussion regarding unclaimed funds lying with LIC and EPFO. It was speculated that the government might use these funds for other government schemes if no claims were made against them. However, the government has now responded, stating that it is not considering any such move.

What did the government say?

During the Monsoon Session of the Lok Sabha, the government clarified that there is no plan to utilize these unclaimed funds. Minister of State for Finance Pankaj Chaudhary stated in the Lok Sabha that, in accordance with IRDAI regulations, insurance amounts against which no claim is made for 10 years are transferred to the Senior Citizens' Welfare Fund. Apart from this, there is no proposal to use these funds for any other scheme.

Government's stance on EPFO

The government also provided information regarding EPFO ​​funds. The Minister stated that while there are no "unclaimed" accounts in the EPFO, a sum of ₹9,330.56 crore is deposited in "inoperative" EPF accounts. According to the government, both LIC and EPFO ​​are making efforts to settle pending claims by reaching out to individuals and their nominees.

It is worth noting that as of March 31, 2026, LIC held unclaimed funds amounting to ₹7,318.50 crore. This figure comprises ₹5,564.55 crore belonging to policyholders and ₹1,753.95 crore in accrued interest. LIC provides a facility on its website to search for unclaimed amounts. Meanwhile, the EPFO ​​is running a pilot scheme to automatically transfer amounts of ₹1,000 or less from Aadhaar-linked inactive accounts to bank accounts.