Getting a rejection on a claim for the investment that one made over many years of employment can be frustrating. But, big errors alone do not call for these claim rejections by the Employees Provident Fund Organisation.
Though the system is efficient, if a few details fall through, the claiming process can be a hassle. There are a few simple steps that can be taken to avoid the issue as well.
According to the 2022–23 annual report released by the EPFO, there were 1.64 crore rejections of claims. The number has not spiked this year but the trend has been evident over the years. The report also carried the rejections in partial withdrawals, which was recorded at 87.2 lakh claims.
The organisation took to X on Thursday and clarified the rejection numbers reflect the "inadmissible claims and returns" as well. "The final withdrawal claims reflect 11.92% rejections and 13.44% return cases."
"Claims are rejected when the claimant is not eligible for the type of advance or withdrawal. Claims are returned if there is any deficiency. Returned claims can be resubmitted after corrections," the EPFO said.
The EPFO has significantly enhanced its claim settlement processes! As of 26 November 2024, the combined rejection and return ratio was 21.59%. This includes 13.77% inadmissible claims, and Returns (deficiency in claims) stood at 7.82%. The final withdrawal claims reflect 11.92%…
November 28, 2024Steer Clear Of Trouble
The system is effective and one receives their payment without much delay but it can also be a hassle to claim the amount if certain information is not in place, according to Santosh Joseph, founder of Germinate Investment Services.
Details as small as initials in bank accounts and EPF accounts can cause issues at the time of claim.
"The naming convention must be kept. Just one alphabet that was wrong in a client's father's name took seven months to rectify," said Vinit Iyer, managing director at Prudeno Wealth Advisors.
Ensure that the your bank account details, KYC information and nominations are all in place.Vinit IyerSome of the errors are cleared on the EPFO website, while others may need in-person follow up. Similarly, issues are also prone to rise if jobs have been switched and not followed up.
"Missed contributions can create issues and if the right procedure for transfer has not been done," Iyer said. One needs to ensure that the account is transferred promptly if a new job is taken within the next couple of months.
Joseph pointed out that one should ensure that the Aadhaar card was linked correctly and all the names were clear across Aadhaar, permanent account number and the EPFO account. "It's also important to update your bank details like the status and IFSC Code."
Any data mismatch accounts for a claim rejection based on syntax. Having joint bank accounts may also be an issue, he said.
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