EPFO: The Employees Provident Fund Organization (EPFO) has implemented three significant modifications to its Employees Deposit Linked Insurance (EDLI) scheme. The primary aim of these adjustments is to enhance financial security for the families of EPF members and to streamline the death claims process. These revisions will expand the insurance coverage, thereby providing greater financial protection to the families of members. Below, we outline these changes and how beneficiaries can take advantage of them.
Revised regulations
Under the revised regulations, if a new EPF member passes away within one year of employment, their family will receive a minimum insurance benefit of Rs 50,000. Previously, there was no guaranteed minimum amount in such cases. EPFO has stated, “If an EPF member dies before completing one year of continuous service, their family will be entitled to a minimum life insurance benefit of Rs 50,000. This amendment is anticipated to assist over 5,000 families annually in cases of death during service.”
Second adjustment
The another modification pertains to instances where an EPF member dies while employed, but their contributions to the EPF have lapsed for some reason. Under the previous guidelines, if an EPF member died after a non-contributory period, their family was ineligible for the EDLI benefits, as it was classified as a death outside of service. However, the new rules stipulate that if the EPF member dies within six months of their last contribution and their name remains on the company’s records, their family will be eligible for insurance benefits under the EDLI scheme.
Third adjustment
The third significant modification pertains to EPF members who experience a service gap due to job transitions. Previously, under the old regulations, any interruption in service, even if it lasted just one or two days, was deemed non-continuous. As a result, the member’s family was ineligible for the minimum benefit of Rs 2.5 lakh or the maximum insurance benefit of Rs 7 lakh. However, the new regulation stipulates that a gap of up to two months between employment will now be regarded as continuous service. This adjustment ensures that members remain eligible for the maximum insurance benefit under the EDLI scheme. The EPFO anticipates that this change will provide assistance to over 1,000 families annually.