The Ministry of Labor and Employment issued a notification to implement the decision to increase the maximum sum assured under the EDLI scheme to Rs 7 lakh. This increased limit has come into force from the date of notification.
New Delhi. In the Coronavirus Pandemic, the Modi government has given great relief to the employed people. The limit of insurance amount given under the Employee Deposit Linked Insurance Scheme, 1976 (EDLI Scheme) has been increased from 6 lakh rupees to 7 lakh rupees. The Employees Provident Fund Organization (EPFO) also provides life insurance facility to its subscribers / member employees. All Subscriber Employees of EPFO are covered under Deposit Linked Insurance Scheme 1976 (EDLI). Now the amount of insurance cover has been maximized to 7 lakh rupees. Earlier it was 6 lakh rupees. Recently, on September 9, 2020, the Central Board of Trustees (CBT) of the EPFO headed by Labor Minister Santosh Gangwar decided to increase the maximum sum assured under the EDLI scheme to Rs 7 lakh.
Increased limit has been applied
The Ministry of Labor and Employment issued a notification on April 28 to implement the decision to increase the maximum sum assured under the EDLI scheme to Rs 7 lakh. This increased limit has come into force from the date of notification.
Know when you can claim in the
EDLI scheme Claims under the EDLI scheme can be made on behalf of the employee of the Employee by the nominee in case of illness, accident or natural death. Now this cover is also available to the aggrieved family of employees who have worked in more than one establishment within 12 months immediately before death. Payment is lump sum. Employees do not have to pay any amount in EDLI. If there is no nomination under the scheme, then the coverage of the deceased employee’s spouse, virgin girls and minor son / son will be the beneficiary.
How to calculate claim amount?
In the EDLI scheme, the claim is calculated on the basis of the last 12 months basic salary + DA received by the employee. Under the latest amendment, the claim for this insurance cover will now be 35 times the last basic salary + DA, which was 30 times earlier. Also, there will now be a maximum bonus of Rs 1.75 lakh, which was earlier a maximum of Rs 1.50 lakh. This bonus is considered to be 50 per cent of the average PF balance during the last 12 months. For example, if the last 12 months basic salary + DA is Rs 15000, then the insurance claim (35 x 15,000) + Rs 1,75,000 = Rs 7 lakh. This is the maximum claim.
