EPFO- If money is also deducted from your PF account, then you can take advantage of this facility.
New Delhi. If you are associated with Employees Provident Fund Organization (EPFO). So let us tell you that EPFO gives the benefit of fund and pension to its subscribers on their retirement. In the event of the death of the subscriber, the benefit of family pension and insurance is provided to his family. Let us tell you that EPFO is given the facility of life insurance to its subscribers.
Actually, Employees’ Provident Fund Organization (EPFO) provides life insurance facility up to Rs 7 lakh to its members. Let us tell you that a few months back, the limit of the sum insured given under the Employee Deposit Linked Insurance Scheme, 1976 (EDLI Scheme) has now been increased from Rs.6 lakh to Rs.7 lakh. Let us know in detail…
Know what is the new rule?
Employees’ Provident Fund Organization (EPFO) also provides life insurance facility to its subscribers/member employees. All EPFO subscribers are covered under the Employees’ Deposit Linked Insurance Scheme 1976 (EDLI). The Central Board of Trustees (CBT) of EPFO headed by Labor Minister Santosh Gangwar had on September 9, 2020 decided to increase the maximum sum insured under the EDLI scheme to Rs 7 lakh. The special thing is that the PF account holder does not have to pay any separate insurance premium for this insurance cover available under the EDLI scheme.
Know what are the benefits of EDLI?
Under this scheme, in the event of death or disability of the insured, the spouse and widowed mother continue to receive a pension equal to 90 percent of the average daily wage of the employee for life and children till the age of 25 years. At the same time, if the daughters of the insured get this benefit till their marriage.
The family member gets the money
under EDLI, the claim member can be made after the employee’s illness, accident or natural death on behalf of the employee’s nominee. Now this cover is also available to the aggrieved family of those employees who have worked in more than one company within 12 months immediately before the death. In this, the payment is made to the nominee in a lump sum. If there is no nomination under the scheme, then the claim can be made by the employee’s spouse, unmarried girls and minor son / son. Even if the EPFO subscriber dies due to the corona epidemic, then the nominee can claim the insurance.
Learn how to claim?
The nominee for the death of the employee has to submit Form-5 IF for the claim, which is verified by the employer. If the employer is not available then it will be verified by Gazetted Officer, Magistrate, President of Gram Panchayat and Municipal or District Local Board.
Know how the calculation is done?
In the EDLI scheme, the claim is calculated on the basis of the basic salary + DA of the last 12 months received by the employee. Under the latest amendment, now the claim of this insurance cover will be 35 times of the last basic salary + DA, which was 30 times earlier. Also, now there will be a maximum bonus of Rs 1.75 lakh, which was earlier Rs 1.50 lakh maximum. This bonus is considered to be 50 percent of the average PF balance during the last 12 months. For example, if the basic salary + DA for the last 12 months is Rs 15000, then the insurance claim is (35 x 15,000) + 1,75,000 = Rs 7 lakh. This is the maximum claim.
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