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Employers get this facility of 7 lakh rupees for free, know when and how they can avail

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Under the EDLI scheme, insurance cover up to Rs 7 lakh is received by the nominee of the PF account holder.

EDLI Scheme

The Employees Provident Fund Organization (EPFO) gives its subscribers another major benefit of life insurance in addition to the Employees Provident Fund (EPF) and the Employees Pension Scheme (EPS). All subscribers of the EPF are covered under the Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI). Under the EDLI scheme, every EPF account gets a free insurance cover of up to 7 lakh rupees. In this scheme, the employee does not have to give any kind of contribution.

If an EPFO ​​member dies in a corona crisis, the nominee can claim the amount of life insurance. Earlier its limit was 6 lakh rupees. Last year, its limit was raised to Rs 7 lakh in September 2020.

When and how can I claim?

This amount can be claimed by the nominee on account of illness, accident or natural death of the PF account holder. There is a lump sum payment. This insurance cover is available free to the subscriber. For this, he does not have to pay any amount. This link only goes with the PF account.

For this, the insurance company will need to give death certificate, succession certificate and bank details. It can also be taken in case of death from COVID-19. If no one has a nominee, then the legal heir can claim this amount.

In order to withdraw money from PF account, submit form-5 IF of insurance cover along with the form to be deposited with the employer. The employer verifies this form. After this, you get cover money.

Explain that at present, 12 percent of the basic salary of the employee in EPF is deposited. Employer also collects 12 per cent, but it is deposited in two parts. The company deposits 3.67 per cent in EPF and 8.33 per cent in EPS.

PPF subscribers’ nominee gets an insurance cover of up to Rs 7 lakh under 0.5% contribution to be submitted to EDLI by the company.

Can not claim after retirement

This insurance received by the PF account holders can be claimed only during the job. It does not benefit after retirement.

read this also- SBI Contactless Service: No need to go to bank for these services, phone and SMS will be done

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Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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