EPF Provident Fund- Do you know what you get apart from money in your EPF and that too absolutely free. Only few people will know about it.
Often you read many types of news about provident fund. Most attention is focused on knowing the balance, transferring EPF or withdrawing PF. But, do you know what you get in your EPF besides money and that too absolutely free. Only few people will know about it. Employees working in the organized sector get free life insurance cover (EDIL insurance cover) up to Rs 7 lakh with an EPF account.
It is linked to your PF account as well. The special thing is that during the period of their job, no employee gives any contribution for this. The Employees Provident Fund Organization (EPFO) provides this facility to all its members. If an EPFO member dies accidentally, the nominee can claim the amount of Life Insurance.
Insurance cover is available under EDLIs
EPFO members get this facility of insurance cover under the Employee Deposit Linked Insurance Scheme (EDIL Insurance cover). Under this scheme, a nominee can be paid a maximum of Rs 7 lakh under insurance cover in case of death of a member. Earlier its limit was Rs 3,60,000. Later the limit for insurance cover was raised to Rs 6 lakh and in September last year, its limit was raised to Rs 7 lakh. The bonus limit was also increased from 1.5 lakh to 2.5 lakh rupees.
How is the amount of insurance cover decided?
On the death of an employee, the nominee gets 30 times the average salary of the last 12 months, with a 20 percent bonus. This means that at the present time, according to the sealing of basic income of Rs 15,000, you will get 30x ₹ 15,000 = ₹ 4,50,000. Apart from this, bonus amount of ₹ 2,50,000 will also be given to the claimant. In total, this amount can be up to a maximum of 7 lakh rupees.
How will insurance claim get met?
On the death of the PF account holder, the nominee of the account can claim the insurance amount. For this, the insurance company will need to give death certificate, succession certificate and bank details. If there is no nominee of the PF account, then the legal heir can claim this amount. To withdraw money from PF account, submit the form of insurance cover along with the form to be deposited with the employer. The employer verifies this form. After this, you get the cover money.
Claim not after retirement
This insurance claim on a PF account can be claimed only when the PF account holder has died during the job, ie before the retirement. During this period, whether he is working in the office or on leave. It does not matter. The nominee can claim the money.
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