If you are associated with the Employees Provident Fund Organization (EPFO), that is, your PF is deducted, then life insurance is provided to you by the EPFO. Employees get life cover of up to Rs 7 lakh from EPFO. Do you know about it? If you do a government or private job, then this news is very important for you.
Insurance amount increased to Rs 7 lakh. In
fact, all the subscribers of EPFO are covered under the Employees’ Deposit Linked Insurance Scheme (EDLI) 1976. Under which the EPFO holder gets an insurance cover of up to 7 lakh rupees. Earlier this amount was 6 lakh rupees. The EPFO’s Central Board of Trustees (CBT) headed by Labor Minister Santosh Gangwar had decided on September 9, 2020 to increase the maximum sum assured under the EDLI scheme to Rs 7 lakh.
More than 5 crore subscribers will get the benefit of this decision of EPFO even after death from Corona . Under the EDLI scheme, employment can be done in case of illness, accident or natural death. If an employee also dies due to Kovid-19, then the family can get Rs 7 lakh under EDLI.
Lump sum will be
received after the death of the employee, a claim will be made on behalf of the nominee. Payment is lump sum. If no one has a nominee, then this claim is given to the legal heir. In such a situation, the spouse of the deceased employee, his virgin girls and minor son are its beneficiaries.
The only condition for the claim is to be
employed in more than one establishment within 12 months immediately before the death of the employee. That is, it is necessary for the employee to be employed within one year before death. During the claim, the insurance company will be required to give the employee’s death certificate, succession certificate, guardianship certificate and bank details if claimed by the guardian on behalf of the minor nominee.
How to claim?
On the death of the employee, the nominee will have to submit a Form-5 IF for the claim, which the employer (employer) verifies. If the employer is not available, then the gazetted officer, magistrate, president of the gram panchayat and the municipal or district local board will be verified.
Employer
pays premium EDLI scheme only premium is deposited by the company, which is 0.50% of the basic salary and dearness allowance of the employee. In this, the maximum basic salary limit is fixed at 15 thousand rupees, that is, despite the basic salary of 15 thousand rupees more, the count will be only 15 thousand rupees.
This is the arithmetic
under the EDLI scheme, on the basis of the last 12 months basic salary + DA of the employee. According to the latest amendment, the insurance cover claim will be 35 times the last basic salary + DA. In which a maximum bonus of 1.75 lakh rupees will be added. For example, suppose that the employee’s last 12 months basic salary + DA, which is 15 thousand rupees. In this way the insurance claim (35 x 15,000) + 1,75,000 = 7 lakh rupees becomes the maximum.
