EPFO has increased the amount of death insurance under this scheme, the family will get help in case of death from Kovid
EPFO Insurance Scheme: EPFO has increased the amount of death insurance under its EDLI scheme.
New Delhi:
EPFO Scheme: Second wave of coronavirus Seeing rising deaths in Employees Provident Fund Organization (Employees ‘Provident Fund Organization- EPFO) has increased the amount of death insurance for beneficiaries on its EDLI scheme i.e. employees’ deposit-linked insurance scheme. Under the scheme, the minimum amount has been increased to 2.5 lakhs and the maximum amount to 7 lakhs. Earlier it was 2 lakh and 6 lakh respectively.
What are the conditions of this scheme
If a beneficiary of EDLI scheme dies during his job, then his family will get the insurance cover money. Under the scheme, a subscriber who is a member of EPFO or a member of the Provider Fund exempted under Section 17 of the EPF and MP Act will get the benefit.
Apart from this, it is also important that the beneficiary is working continuously for 12 months before his death. There is no point in whether he changed the institution of his job during this period or not.
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Explain that the EDLI scheme is part of the Employees’ Provident Fund and Miscellaneous Provisions Act (EPF and MP Act), 1952. EPFO started this scheme to provide insurance cover to private sector employees.
All such employees, whose basic salary is less than Rs 15,000 per month, can take advantage of this scheme. According to its rules, the contribution of the employee’s company will be 0.5 per cent of the basic salary or a maximum of Rs 75 per month per employee. If the company does not have any group insurance, then the maximum contribution will be limited to Rs 15,000 per month.
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Family gets money on beneficiary’s death
If a subscriber dies, his family gets 7 lakh rupees under this scheme, while every month widow / children / orphan pension gets under the EPS scheme. The family, minor or any mentally ill person can claim the amount by filling Form 5 IF along with EPF Form 20.
The form will require the signature of the beneficiary’s employer, but if the signature is not available, the form must be submitted by a local MP, MLA, gazetted officer, magistrate, local municipal board member or secretary or EPF or any of the regional committee of CBT. Members can be verified. If the beneficiary does not have a nominee, then after his death his legal heir can claim this amount.