EPFO EDLI Scheme: This facility of insurance cover is available to the members under the Employee Deposit Linked Insurance Scheme (EDIL Insurance cover).
EPFO EDLI Scheme: You often read many types of news about Provident Fund. Most of the attention is focused on knowing the balance, transferring EPF or withdrawing PF. But, do you know that you also have such a silent feature in your EPF, which most people do not know and that too absolutely free. Only few people will know about it. Employees working in the organized sector get free life insurance cover of up to Rs 7 lakh with EPF account.
It is linked with your PF account only. The special thing is that during the period of his job, no employee gives any contribution for this. Employees’ Provident Fund Organization (EPFO) provides this facility to all its members. In case of accidental death of any EPFO member, the nominee can claim the amount of Life Insurance. EPFO itself has given information about the features of this insurance scheme by tweeting.
Insurance cover available under EDLIs
EPFO members get this facility of insurance cover under the Employee Deposit Linked Insurance Scheme (EDIL Insurance cover). Under this scheme, on the death of the member, a maximum insurance cover of Rs 7 lakh can be paid to the nominee. Earlier its limit was Rs 3,60,000. Later the limit of insurance cover was increased to Rs 6 lakh and in September 2020 last year, its limit was increased to Rs 7 lakh. The limit of bonus was also increased from Rs 1.5 lakh to Rs 2.5 lakh.
https://twitter.com/socialepfo/status/1420660458290245636?s=20
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, along with a bonus of 20%. This means that according to the ceiling of basic income of Rs 15,000 at present, 30x ₹ 15,000 = ₹ 4,50,000 will be available. Apart from this, a bonus amount of ₹ 2,50,000 will also be given to the claimant. Overall, this amount can be up to a maximum of Rs 7 lakh.
How to get insurance claim?
On the death of the PF account holder, the nominee of the account can claim the sum assured. For this, the insurance company will need to provide death certificate, succession certificate and bank details. If there is no nominee in the PF account, then the legal heir can claim this amount. To withdraw money from the PF account, submit the form of insurance cover along with the form to be submitted with the employer. The employer verifies this form. After this the cover money is received.
No claim after retirement
This insurance on the PF account can be claimed only if the death of the PF account holder happened while in service, that is, before retirement. During this, whether he is working in the office or on leave. It does not matter. Nominee can claim money.
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