What is EPFO's new death claim process rule? Know if Aadhaar seeding is necessary

EPFO Claim Process: When an EPFO account holder dies, their family may face the problem of the rejection of their physical claim to withdraw provident fund (PF) due to a lack of rectification or updating of the deceased's Aadhaar details. It often happens when field offices face challenges in rectifying UID details. However, the family number of such deceased's can take a sigh of relief now as the EPFO said that the processing of physical claims without seeding Aadhaar may be permissible in cases of deaths. 

“However, this concession is contingent upon obtaining approval from the Officer in Charge (OIC) via an e-office file. The file must meticulously document the verification procedures undertaken to authenticate the deceased's membership and the legitimacy of the claimants. This protocol is to be executed in conjunction with additional due diligence measures, as directed by the OIC, to mitigate the risk of fraudulent withdrawals," EPFO said in a statement dated May 17, 2024.

EPFO can give relaxation in cases where member details are accurate in their UAN card but inaccurate or incomplete in the Aadhaar database.

"In cases where Aadhaar data is correct but inaccurate or incomplete in the UAN, field offices must meticulously follow the guidelines delineated in Paragraphs 6.9 and 6.10 of JD SOP version-2 dated 26.03.2024. This involves rectifying the data in the UAN, seeding, and validating/authenticating the Aadhaar, in alignment with the instructions outlined in the prior Circular dated 24.09.2020," EPFO circular stated.

What issues field offices faced

In its circular, EPFO said that field offices encountered difficulties, mainly in the seeding and authentication of UIDs of deceased individuals. 

1) Deactivated Aadhaar accounts.

2) Technical issues in validating Aadhaar through the UIDAI database.

3) Unavailability of Aadhaar information for cases predating its implementation.

4) Inaccuracies or incompleteness in member details within Aadhaar records.

The EPFO said that in such cases, field officers couldn't process the physical claims promptly, and it caused delays in paying the affected families.

With physical claims now being processed without UID seeding, the claimants of many of the deceased individuals can avail themselves of the facility. Here is how

Approval is required from the Officer In Charge (OIC) via an e-office file.

Temporary allowance for physical claims without UIF seeding in death cases.

Detailed verification is necessary to confirm the deceased's membership and claimant's authenticity.

Due diligence actions directed by OIC to prevent fraudulent withdrawals.