If you have a PF account and your PF is deleted every month, then reading this article may be very helpful to you. Instead, few people know that those with a PF account get life insurance from EPFO. EPFO provides life insurance of up to Rs 7 lakh to its members. Let us tell you that some time ago the limits for insurance offered under the Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI Scheme) have now increased from Rs.6 lakhs to Rs.7 lakhs.
What is an EDLI Scheme?
The EDL policy is provided to all customers with a PF account to assist with life insurance. The EDLI pays a person who has received insurance coverage if he or she dies due to an accident, illness or accident. The purpose of this policy is to provide financial security for a relative after the death of an employee. The benefit is provided to the employee by the company and the central government.
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How to calculate the amount of complaints?
In the EDLI scheme, the claim is calculated on the basis of the starting pay + DA in the last 12 months that the employee received. Under a recent update, now this insurance claim will be 35 times the final + payout + DA, which was 30 times in the past. In addition, there will be a full bonus of Rs 1.75 lakh, which was previously Rs 1.50 lakh maximum. This bonus is calculated to be 50% of the PF average in the last 12 months. For example, if the starting salary + DA in the last 12 months is Rs 15000, then insurance is (35 x 15,000) + 1,75,000 = Rs 7 lakh. This is a big claim.
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Who can say what?
This figure of EDLI policy is based on the death of the PF account holder on behalf of the nominee. If one does not have a nominee, then this is passed to the legal successor. That is, if there is no selection under the policy, then the employee’s wife has died, her unmarried daughters and young sons are the beneficiaries. Full payment is made under this policy. For this the employee does not have to pay any fees. Then, the insurance coverage is available to the subscriber for free. Connected to PF account only. It can also be considered dead due to Covid-19.
How do you record the benefits of EDL?
The nominee on the death of the employee must submit a Form 5 IF to pay the amount, which is verified by the employers. If the employee is absent, the same will be confirmed by the Gazette Superintendent, Magistrate, President of Gram Panchayat and Municipal Local Board.