EPFO Simplifies Death Claim Process: No Guardianship Certificate Needed for Minor Children
Introduction
The Employees’ Provident Fund
Organisation (EPFO), under the Ministry of Labour & Employment, Government
of India, has issued a significant directive to simplify the settlement of
death claims. Issued on August 13, 2025, the new guideline explicitly states
that a guardianship certificate is no
longer required for payments of provident fund or pension settlements to
the bank accounts of surviving minor children. This move aims to ease the
burden on bereaved families and ensure a faster payout process.
Earlier Practice
Previously, when an EPFO member passed
away and the settlement or pension was to be paid to their minor children,
offices frequently insisted on a formal guardianship certificate from the
claimants. This certificate—granted by a court—formally designated a guardian
authorized to manage the minor’s financial affairs. The requirement often
resulted in lengthy procedures, legal expenses, and delays for families already
coping with loss.
Why Was a Guardianship Certificate
Required?
The rationale behind demanding a
guardianship certificate was to safeguard
the interests of minor children. Since minors cannot legally operate bank
accounts or independently manage significant financial assets, the certificate
served as official recognition of an adult (usually a parent or close relative)
who could act on the child’s behalf. It was a measure to ensure that the
settlement funds would be appropriately managed for the welfare of the minor.
Why This Change Was Introduced
The EPFO observed that requiring a
guardianship certificate—even in cases where the settlement is credited to the
minor’s bank account—caused unnecessary hardship and delayed timely support.
The main intention behind the change is to: