State-owned Life Insurance Corporation of India (LIC) had Rs 7,318.5 crore in unclaimed funds as of March 31, 2026, the Finance Ministry said on Monday in a written reply to Parliament.
The ministry said the amount includes Rs 5,564.5 crore of unclaimed policyholder money and Rs 1,753.95 crore in accrued income generated on those funds.
Separately, the government clarified that the Employees' Provident Fund Organisation (EPFO) does not maintain any "unclaimed" accounts. However, it said Rs 9,330.5 crore is currently parked in inoperative EPF accounts, where contributions have ceased and the accounts remain inactive.
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To facilitate quicker settlement of small balances, EPFO has launched a pilot project to automatically credit funds of up to Rs 1,000 in eligible inoperative accounts linked with Aadhaar-verified beneficiaries.
The initiative is aimed at reducing the number of dormant accounts and enabling seamless transfer of small balances to rightful account holders.
The government also ruled out any move to divert idle provident fund balances for other purposes.
Responding to a query in Parliament, the Finance Ministry said there is no proposal under consideration 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.
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