EPFO New Feature: If you are employed, you likely have a PF account. Most people only associate retirement benefits with pensions. However, an EPF account offers another significant benefit. The EPFO provides free life insurance up to ₹7 lakh to all its members.
Being an EPF member automatically provides coverage under the EDLI scheme. This scheme provides life insurance coverage from the EPFO, which is considered the third largest benefit available alongside EPF and EPS.
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How to Pay the Premium
The special feature is that the employee does not have to pay any premium; the entire expense is borne by the company. This makes this benefit completely free. The premium in the EDLI scheme is paid by the company, not the employee.
As per the rules, the company contributes 0.5% of the employee’s monthly salary, i.e., basic DA, to this scheme. This deduction is made directly by the company. Therefore, no amount is deducted from the employee’s salary. This scheme is very beneficial for employed people.
When is insurance cover available?
This insurance cover is activated only when an employee dies while on duty. Whether in the office, at home, or on leave, regardless of the circumstances. This insurance is fully applicable. In such cases, financial assistance is provided to the employee’s family or nominee.
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Insurance worth so many lakhs is available
The amount covered under EDLI is determined in two parts. The minimum cover is ₹2.5 lakh, while the maximum is ₹7 lakh. When determining the account, the employee’s average salary for the last 12 months and the amount deposited in their PF account are considered.
For information, every employee whose PF is deducted is eligible for the benefits of this scheme, whether they are permanent or contract workers. If you have an active PF account, you can participate in the EDLI scheme. Millions of people are benefiting from this facility.
