Life insurance of Rs 7 lakh will be available free for three years, EPFO has also removed the condition of 12 months continuous service
New Delhi. The Employees Provident Fund Organization has extended the duration of the Employees Deposit Linked Insurance i.e. EDLI scheme for three years. This decision will benefit about 6 crore members of EPFO. Under the EDLI scheme, EPFO subscribers get life insurance up to Rs 7 lakh for free. Earlier on April 28, 2021, by issuing an official notification for the EDLI scheme, the insurance benefits available to the heirs of the EPFO subscriber were extended for three years. Now it has been extended once again. EPFO has also relaxed the rules to avail insurance up to Rs 7 lakh. For insurance benefits, it was earlier necessary for the employee to work at one place for 12 months, now this condition has been removed.
EDLI scheme was started in the year 1976. The purpose of this is to provide insurance benefits to the members of the Employees Provident Fund Organization. So that whenever an EPFO member dies, the family does not have to face financial difficulties. The insurance amount is given to the nominee of the EPF account holder. If no nominee is made, then his legal heirs get the insurance amount equally. Insurance cover can be provided in case of illness, accident or natural death of the employee.
The insurance amount depends on salary.
The insurance amount under the EDLI scheme depends on the salary of the last 12 months. In case of the death of an employee, the nominee gets 30 times the average salary of the last 12 months along with a 20% bonus. Every month, 8.33% of the PF amount deposited from the employee's salary is deposited in EPS, 3.67% in EPF and 0.5% in the EDLI scheme.
No benefit to leaving the job
Any account holder can get a minimum insurance claim of Rs 2.5 lakh and a maximum of Rs 7 lakh under the EDLI scheme. To get the minimum claim, the account holder must work for at least 12 months continuously. The account holder who leaves the job is not given the benefit of insurance.
This insurance on the PF account can be claimed only if the PF account holder dies during the job, that is, before retirement. During this time, whether he is working in the office or on leave, does not matter.
