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