Uncertainties of life in the modern world have made getting adequate insurance cover imperative for every individual. This is especially important for private-sector employees who do not enjoy the same social security benefits as public sector employees. To extend the benefits of life insurance to private sector employees, the government has introduced the Employees Deposit Linked Insurance Scheme (EDLI) in 1976.
Do you know that EPF gives free facility of 7 lakh rupees to its members ?
If you have a PF account in Employees’ Provident Fund Organization (EPFO), then you will get the benefit of Rs 7 lakh without doing anything. Actually, EPFO members get the facility of insurance cover under the Employee Deposit Linked Insurance Scheme (EDLI). In the scheme, a maximum insurance cover of Rs 7 lakh is paid to the nominee.
People working in private companies also get the benefit of up to Rs 7 lakh for free.
With effect from 28.04.2021, the EPFO has increased the maximum benefit to Rs.7 lakh for the registered nominees of the deceased member.
The Ministry had earlier increased the minimum amount of benefit to Rs.2.5 lakh on Feb 2018 for two years. However, the EPFO has further decided to continue with the same minimum benefit of Rs.2.5 lakh with retrospective effect from 15th Feb 2020. However, effective 28/4/2021 , the maximum benefit stands at 7.00 lakhs.
Also, with effect from 28.04.2021, the EPFO has extended the benefit to the nominees of the deceased member who have changed their establishment for employment within a period of 12 months preceding the month of their death.
So let’s know everything about it…
Under what condition do you get 7 lakh rupees?
The EDLI scheme can be claimed on behalf of the nominee of the member employee in case of illness, accident or natural death of the employee. Now this cover is also available to the aggrieved family of those employees who have worked in more than one establishment within 12 months immediately before the death.
No amount to be paid to the employee but to the nominees of the deceased .
In EDLI, the employee does not have to pay any amount. If there is no nomination under the scheme, the coverage will be the spouse, unmarried daughters and minor sons of the deceased employee. If the minor who is claiming is less than 18 years of age, then his guardian can claim on his behalf.
These documents are needed
To withdraw money from the PF account, form 5 IF of insurance cover will also have to be submitted along with the form to be submitted with the employer. The employer will verify this form. If the employer is not available, the form should be attested by either the Gazetted Officer, Magistrate, Chairman of the Gram Panchayat, Chairman/Secretary/Member of the Municipality or District Local Board, Postmaster or Sub Postmaster.
Documents required for a payout under EDLI
To process the claim under EDLI, the following documents are to be submitted by the claimant: –
· Duly completed Form 5 IF
· Death Certificate of the insured person.
· Succession Certificate in case the legal heir files the claim.
· Guardianship Certificate if the claim is filed on behalf of a minor by a person other than the natural guardian.
· Copy of cancelled cheque for the account in which the payment is to be received.
E-nomination facility also started
EPFO has now started the facility of e-nomination to give the information of the nominee. Those who are not enrolled in this, they are being given a chance. After this, information like name of the nominee, date of birth will be updated online.