EPFO: If you work in private or government companies, then PF is deducted there. Yes! If money is also deducted from your PF account then you can take advantage of this facility. Actually, EPFO members get the facility of insurance cover under the Employee Deposit Linked Insurance Scheme (EDLI Insurance cover). In the scheme, a maximum of Rs 7 lakh is paid to the nominee under the insurance cover (EPF Covid Claim).
Let us inform you that in the hour of the Corona crisis, the Employees’ Provident Fund Organization (EPFO) is giving debt claim cover of seven lakh rupees to the family. Let us tell you that earlier the death cover for PF account holders was Rs 6 lakh, now it has been increased to Rs 7 lakh.
Know what is the new rule?
Employees’ Provident Fund Organization (EPFO) also provides life insurance facilities to its subscribers/member employees. All EPFO subscribers are covered under the Employees’ Deposit Linked Insurance Scheme 1976 (EDLI). The Central Board of Trustees (CBT) of EPFO headed by Labor Minister Santosh Gangwar had on September 9, 2020, decided to increase the maximum sum insured under the EDLI scheme to Rs 7 lakh. The special thing is that the PF account holder does not have to pay any separate insurance premium for this insurance cover available under the EDLI scheme.
What are the benefits of EDLI?
Under this scheme, in the event of death or disability of the insured, the spouse and widowed mother continue to receive a pension equal to 90 percent of the average daily wage of the employee for living and children till the age of 25 years. At the same time, if the daughters of the insured get this benefit till their marriage.
A family member gets money
Claims under EDLI can be made on behalf of the employee’s nominee after the employee’s illness, accident, or natural death. Now this cover is also available to the aggrieved family of those employees who has worked in more than one company within 12 months immediately before the death. In this, the payment is made to the nominee in a lump sum. If there is no nomination under the scheme, then the employee’s spouse, unmarried girls, and minor son/son will be able to claim. Even if the EPFO subscriber dies due to the corona epidemic, then the nominee can claim the insurance.
Know how the calculation is done?
In the EDLI scheme, the claim is calculated on the basis of the basic salary + DA of the last 12 months received by the employee. Under the latest amendment, now the claim of this insurance cover will be 35 times the last basic salary + DA, which was 30 times earlier. Also, now there will be a maximum bonus of Rs 1.75 lakh, which was earlier Rs 1.50 lakh maximum. This bonus is considered to be 50 percent of the average PF balance during the last 12 months. For example, if the basic salary + DA for the last 12 months is Rs 15000, then the insurance claim is (35 x 15,000) + 1,75,000 = Rs 7 lakh. This is the maximum claim.