Provident Fund Body Hikes Death Insurance Cover To Rs 7 Lakh

In a beneficial step towards welfare of workers amid growing deaths owing to the Coronavirus pandemic, the Employees' Provident Fund Organisation (EPFO) has hiked the death insurance benefits for beneficiaries coming under its employees' deposit-linked Insurance (EDLI) scheme..The minimum death insurance benefit has been increased to Rs 2.5 lakh and the maximum to Rs 7 lakh. The earlier limits were Rs 2 lakh and Rs 6 lakh respectively..The insurance cover will be given to the family of the beneficiary of the EDLI scheme in the event of his or her death while in employment..The benefits under the scheme would be applicable to the subscriber if he or she was a member of the EPFO or of a provider fund, exempted under Section 17 of the EPF & MP Act aid..In addition to this, the dead person needs to be in employment for a continuous period of 12 months preceding the month in which the death occurred. This is irrespective of any change of establishment during the said period..The EDLI scheme was implemented as part of the Employees' Provident Fund and Miscellaneous Provisions Act (EPF and MP Act), 1952. It is an insurance cover provided by the EPFO for private sector salaried employees..All employees who get a basic salary under Rs 15,000 per month are eligible for availing the EDLI scheme. As per the provisions of the EDLI, the contribution of an employer must be 0.5 per cent of the basic salary or a maximum of Rs.75 per employee per month. If the employer does not have any group insurance in place, then the maximum contribution is limited to Rs 15,000 per month..In case of the death of a member, the family gets insurance of up to Rs 7 lakhs under the EDLI scheme and monthly widow/child/orphan pension under the EPS scheme..The family, minor or lunatic member can also claim provident fund withdrawal using EPF form 20 with duly completed Form 5 IF..If there is no employer or the signature of the employer cannot be obtained, then the form must be attested by a local Member of Parliament (MP) or Member of Legislative Assembly (MLA) , gazetted officer, magistrate, member or secretary of the local municipal board or from a member of the regional committee of EPF or CBT..If the dead person doesn't have a nominee, then the legal heir can claim the amount.

Provident Fund Body Hikes Death Insurance Cover To Rs 7 Lakh

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