EPFO raises death insurance cover to Rs 7 lakh for subscribers

EPFO raises death insurance cover
to Rs 7 lakh for subscribers

NASHIK: The Employees’ Provident Fund Organisation (EPFO) raised the death insurance benefits for subscribers of its employees’ deposit-linked Insurance (EDLI) scheme amid the Coronavirus pandemic in the country. The minimum death insurance has been increased to Rs 2.5 lakh and the maximum to Rs 7 lakh, from the earlier limits of Rs 2 lakh and Rs 6 lakh.

The insurance cover will be given to the family of the subscriber of the EDLI scheme if the subscriber dies while in employment. The benefit payable under the EDLI Scheme shall be extended to such beneficiaries where the deceased employee was a member of the Fund or a provider fund exempted under Section 17 of the EPF & MP Act aid was in employment for a continuous period of 12 months preceding the month in which he died, irrespective of change of establishment during the said period.

The EDLI scheme was implemented as part of the Employees’ Provident Fund and Miscellaneous Provisions Act (EPF and MP Act), 1952. Employees Deposit Linked Insurance Scheme or EDLI is an insurance cover provided by the EPFO (Employees Provident Fund Organisation) for private sector salaried employees. All employees who get a basic salary under Rs 15,000 per month are eligible for the EDLI scheme.

As per the provisions of the EDLI, the contribution of an employer must be 0.5% of the basic salary or a maximum of Rs. 75 per employee per month. If the employer does not have any group insurance in place, then the maximum contribution is limited to INR 15,000 per month. In case of the unfortunate death of a member, the family gets insurance of up to 7 lakhs under the EDLI scheme and monthly widow/child/orphan pension under the EPS scheme.

PF settled 2.5 lakh claims

The Employees Provident Fund Office paid over Rs one billion to a total of 2,50,276,53 members, informed Nashik regional Provident Fund Commissioner M M Ashraf said.

Of this, 47,722 members mainly withdrew PF amount of Rs 35.04 crore. Rs 40.26 lakh was withdrawn from the PF account by 1,32,575 members for various reasons. Rs 22.98 crore was withdrawn by 5,896 members for pension claim and Rs 5.67 crore was withdrawn by 34,507 members for 10-C of the pension scheme. In the death insurance scheme implemented by the government, claims of Rs 1 crore 60 lakh have been settled.

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