Insurance of up to Rs 7 lakh is being offered by the Employees Provident Fund Organisation (EPFO), which is the nodal authority for Employees’ Provident Fund (EPF) or PF to assist family members of active salaried staff if he or she unfortunately dies of Covid-19.
Insurance of up to Rs 7 lakh is being offered by the Employees Provident Fund Organisation (EPFO), which is the nodal authority for Employees’ Provident Fund (EPF) or PF to assist family members of active salaried staff if he or she unfortunately dies of Covid-19.
This death insurance benefit is provided as part of the Employees’ Deposit-Linked Insurance (EDLI) scheme. A maximum limit of Rs 7 lakh has been fixed as the death benefit under the scheme.
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While the minimum threshold has been kept at Rs 2.5 lakh. Earlier Rs 6 lakh was the maximum amount which was offered to the family members of active salaried staff if he/she dies. As per a report by Mint, the changes are in effect from April.
The EDLI scheme was implemented as part of the Employees’ Provident Fund and Miscellaneous Provisions Act (EPF and MP Act), 1952. It is a mandatory insurance cover that is provided to all subscribers of the EPF scheme. Also, all the organisations covered under EPF and MP Act, 1952, get automatically enrolled for EDLI.
As per a report by India.com, employees are not required to make any contribution under the Employees’ Deposit-Linked Insurance scheme. While the employers have to contribute 0.5 percent of PF wages limited to Rs 75 per month.
The benefits of the EDLI scheme will be provided to family members of deceased employees who have EPF accounts and the organisations which are registered under the EPF scheme.
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How can a person claim death insurance benefits?
The details of the nominee are filled in by an employee, who has an EPF account in PF Form Number 2. The nominee mentioned by the employee can avail the death insurance benefits under the EDLI scheme.
