Streamlining EPFO Claims Without UAN: A Comprehensive Guide to the New Temporary Measure

On 17th May 2024, the Employees’ Provident Fund Organization (EPFO), under the Ministry of Labour & Employment, Government of India, issued a pivotal circular addressing the challenges in settling physical claims in death cases without the Universal Account Number (UAN). This move aims to overcome the hurdles related to Aadhaar authentication, ensuring timely disbursement of benefits to eligible beneficiaries. Here, we delve into the details of this circular, the underlying issues, and the solutions proposed.

Understanding the Context

The EPFO is responsible for the management of provident fund accounts and ensuring that employees receive their entitled benefits. However, the process of settling claims, particularly in death cases, has encountered significant obstacles due to discrepancies in Aadhaar details. This circular comes in response to numerous references from field offices struggling with these challenges.

The Core Issues

1. Inaccurate/Incomplete Aadhaar Details: Many members have discrepancies in their Aadhaar information, such as incorrect personal details or incomplete records. This hinders the authentication process, which is crucial for claim settlements.
2. Unavailability of Aadhaar: For members who passed away before the Aadhaar system was widely adopted, their Aadhaar details are either non-existent or not linked to their provident fund accounts.
3. Deactivated Aadhaar: In some cases, the Aadhaar numbers have been deactivated, posing a challenge in the verification process.
4. Technical Errors: Technical issues in validating Aadhaar details through the UIDAI database have also been reported, causing delays in processing claims.

The Temporary Solution

To address these issues, the EPFO has implemented a temporary measure allowing the processing of physical claims without the need to seed Aadhaar details. However, this is subject to strict conditions to prevent fraudulent activities and ensure the legitimacy of claims.

Key Provisions of the Temporary Measure:

1. Approval Requirement: Claims without Aadhaar must be approved by the Officer-in-Charge (OIC). The approval process involves creating an e-office file detailing the verification steps taken to confirm the membership of the deceased and the authenticity of the claimants.
2. Due Diligence: The OIC is responsible for conducting thorough due diligence to prevent fraudulent claims. This includes various verification measures as deemed appropriate by the OIC.
3. Specific Scenarios:
   • Correct UAN but Inaccurate Aadhaar: This measure applies primarily to cases where the UAN details are correct, but the Aadhaar details are inaccurate or incomplete. The circular specifies that these claims can be processed without seeding Aadhaar temporarily.
   • Correct Aadhaar but Inaccurate UAN: For cases where Aadhaar details are accurate but UAN details are incorrect, the instructions outlined in Paragraphs 6.9 and 6.10 of the JD SOP version-2 dated 26th March 2024 must be followed. These paragraphs provide guidelines for rectifying UAN data, seeding, and validating Aadhaar to comply with the earlier circular dated 24th September 2020.

Detailed Instructions for Field Offices

1. Verification and Documentation: Field offices must meticulously document the verification process. This includes confirming the deceased member’s identity, verifying claimant details, and ensuring all steps are recorded in the e-office file.
2. Avoiding Fraudulent Withdrawals: The EPFO emphasizes the importance of avoiding fraudulent withdrawals. OICs must implement robust verification procedures and leverage available data to authenticate claims.
3. Compliance with SOPs: Field offices are instructed to adhere strictly to the Standard Operating Procedures (SOPs) outlined in previous communications. This includes following the guidelines for rectifying UAN data and ensuring the seeding and authentication of Aadhaar where applicable.

Implications and Future Steps

This temporary measure is a significant step towards addressing operational challenges and ensuring that beneficiaries receive their dues without unnecessary delays. However, it is crucial to recognize that this is a stopgap solution. Moving forward, the EPFO must focus on creating a more robust and resilient system capable of handling such discrepancies seamlessly.

Long-term Recommendations:

1. Enhanced Data Integration: Improve the integration between UAN and Aadhaar databases to minimize discrepancies and streamline the verification process.
2. Technical Upgrades: Invest in technology to reduce technical errors and ensure smooth validation of Aadhaar details through the UIDAI database.
3. Training for Field Offices: Provide comprehensive training for field office staff on the new procedures and the importance of meticulous verification to prevent fraud.

By implementing these measures, the EPFO can ensure a more efficient and reliable system for processing claims, ultimately benefiting the members and their beneficiaries.

For more detailed information, stakeholders can refer to the full circular issued by the EPFO’s Head Office. This initiative reflects the EPFO’s commitment to adapting to the evolving needs of its members and enhancing the overall efficiency of claim settlements.