The Ministry of Labor has increased the maximum sum assured under the Employees Deposit Linked Insurance Scheme, (EDLI) 1976 from Rs 6 lakh to Rs 7 lakh under the Board of Trustees of the Employees Provident Fund Organization (EPFO). The EPFO’s Central Board of Trustees (CBT), headed by Labor Minister Santosh Gangwar, in a meeting held on September 9, 2020, decided to increase the maximum sum assured under the EDLI scheme to Rs 7 lakh.
Minimum Sum Assured Rs 2.5 Lakh
The CBT also decided to retain the minimum sum assured at Rs 2.5 lakh after 14 February 2020. Gangwar told PTI that the Ministry of Labor and Employment on Wednesday (April 28) issued a notification to implement the decision to increase the maximum sum assured under the EDLI scheme to Rs 7 lakh. Labor Secretary Apoorva Chandra said that the maximum sum insured will be applicable from the date of notification. He also said that the minimum sum assured of Rs 2.5 lakh will be applicable from February 15, 2020.
The Ministry of Labor and Employment had, through a notification on 15 February 2018, raised the minimum sum assured under the EDLI to Rs 2.5 lakh. This increase was done for two years. Its period ended on 15 February 2020. Therefore, the amendment has been notified again to continue the said benefit beyond 15 February and to take effect from the earlier date. According to the ministry, it will not affect the interest of any person.
They get benefits
The CBT approved amendment to paragraph 22 (3) of EDLI, 1976 in September 2020 to increase the maximum insurance amount from Rs 6 lakh to Rs 7 lakh. The purpose of this amendment is to provide relief to the families and dependents of those members associated with the scheme, who die unfortunate while in service. In a meeting of CBT held in March 2020, EPFO trustees recommended giving a minimum benefit of Rs 2.5 lakh to the family members of the deceased employee, who dies during service.
Earlier it was arranged that the minimum sum assured of Rs 2.5 lakhs and maximum amount of Rs 6 lakhs will not be found in the situation where the member has worked in more than one establishment during the first 12 months of the month of death. At the 226th meeting of the Board in March 2020, these benefits were approved in the event of the member working in several establishments.
