EPFO raises death insurance cover to Rs 7 lakh for subscribers of EDLI scheme amid COVID pandemic; Know how to avail
New Delhi | Jagran Business Desk: In a bid to provide support to the customers amid the coronavirus pandemic in the country, the Employees' Provident Fund Organisation (EPFO) has raised the death insurance benefits for subscribers of its employees’ deposit-linked Insurance (EDLI) scheme. Now, the minimum death insurance has been raised to Rs 2.5 lakh from 2 lakh, while the maximum insurance has been raised to Rs 7 lakh from Rs 6 lakh earlier.
The insurance cover will be given to the family of the subscriber of the EDLI scheme if the subscriber dies while in employment. There are over 2 million subscribers of the EDLI scheme among the 50 million active subscribers of EPFO. The special thing is that this insurance cover will also be available to those employees who have worked in more than one establishment within a year.
“The following proviso shall be inserted and shall be deemed to have been inserted with effect from the 15th day of February 2020... provided that the assurance benefit shall not be less than two lakh and fifty thousand rupees," the notification said. “In the second proviso, for the words six lakh rupees, the words seven lakh rupees shall be substituted," it added.
The EPFO has introduced the EDLI scheme to give relief to its members during the COVID period. The basic salary of employees working in any organized group and 12 per cent of Dearness Allowance (DA) goes to EPF (Employee Provident Fund). Also, 12 per cent is contributed by the company or the employer. Of this, 8.33 per cent of the employer's 12 per cent goes into the Employee Pension Scheme (EPS). Thus, the premium in the EDLI scheme is submitted by the company only.
How to claim for death insurance cover under the EDLI scheme?
If the EPF member has died prematurely, his nominee or heir will be able to claim the insurance cover. If the claimant is less than 18 years, then his / her guardian can claim on his / her behalf. For this, the insurance company will have to give the death certificate of the employee, succession certificate, guardian certificate and bank details applying on behalf of the minor nominee.
Regional Commissioner of Employees Provident Fund Organization Jai Kumar said that it has been fully implemented by the Employees Provident Fund Organization keeping in mind the interests of its members and it will benefit all the members.
Posted By: Talibuddin Khan