Many families are facing a crisis due to the death of a earning member in the second wave of Corona. However, in the face of this crisis, the Employees Provident Fund Organization (EPFO) is giving a debt claim cover of seven lakh rupees to the family.
The objective of this scheme is to provide financial help after the death of the earning member of the family. The Ministry of Labor and Employment issued a notification on April 28 to increase the maximum sum assured under the EDLI scheme to Rs 7 lakh. At the same time, the minimum insurance amount was increased to Rs 2.5 lakh.
This facility for all PF shareholders
Saraswati Kasturirangan, partner at Deloitte India, said the EDLI scheme is available to all members who are contributing to the provident fund. The scheme provides coverage to employees in the event of an untimely death. The nominee gets the benefit of the sum assured.
Eligibility conditions
Employees working in organizations nominated under the EPF scheme get the benefit of the EDLI scheme. This cover is also available to the aggrieved family of employees who have left one company and worked in another within a year. Payment is lump sum. Employees do not have to pay any amount in EDLI. If there is no nomination under the scheme, the coverage will be the spouse of the deceased employee, the virgin girl child and the minor son / son beneficiary.
How will the claim for the sum assured
If the EPF shareholder dies prematurely, his nominee or legal heir can claim for insurance cover. If the claimant is less than 18 years of age, his / her guardian can claim on his / her behalf. For this, the insurance company will need to give the death certificate of the employer, succession certificate, guardianship certificate and bank details if claimed by the guardian on behalf of the minor nominee. If there is no nominee of the PF account, then the legal heir can claim it.
Form 5 IF will be required
To withdraw money from PF account, the form to be deposited with the employer will also have to submit Form 5 IF of insurance cover. This form will be verified by the employer. If the employer is not available, the form has to be verified by a gazetted officer.
