EPFO Scheme: If you are a member of the EPF and work in the private sector, you automatically qualify for this scheme. It offers a maximum coverage of Rs 7 lakh and a minimum of Rs 2.5 lakh, subject to certain conditions. The amount is based on the employee’s salary and the average balance in their PF account. Discover which scheme allows private employees to benefit from this coverage.
Benefits of the Deposit Linked Insurance Scheme
The Employees’ Provident Fund Organization (EPFO) provides its members with the Employee Deposit Linked Insurance Scheme (EDLI). This scheme acts as a life insurance policy that offers financial support to an employee’s family or nominee in case of their death while employed. Find out how to access this benefit.
What is the amount of insurance coverage provided?
This benefit is exclusively available to EPFO members, which means that PF contributions are deducted from their monthly salary. Interestingly, many individuals in the private sector are unaware that they can secure insurance coverage worth lakhs of rupees at no cost. The EPFO administers an insurance scheme that grants employees insurance coverage of Rs 7 lakh.
How much benefit will you get from EDLI?
This scheme, operated under the EPFO, is offered only to EPF members. In the event of an EPF member’s death while in service, the insurance proceeds are paid out in full to their nominee or legal heir. The most significant feature is that no premium is required for this insurance. The entire cost is borne by the employer or company. Consequently, all eligible employees covered by the EPF automatically fall under this scheme.
Who gets the benefit of the scheme?
If an employee dies while in service, the EPF benefit is paid to the nominee registered in the account, to a family member or legal heir in the absence of a nominee, and to the guardian of the minor beneficiary. It’s worth noting that the EPFO recently warned that simply submitting an e-nomination is not sufficient. It’s also necessary to e-sign via Aadhaar, otherwise the nominee may face difficulties in receiving PF, pension, and EDLI benefits.
How to make EDLI claim?
Form 5IF (EDLI claim form), death certificate, nominee/claimant’s identity card, bank account details (passbook or canceled check), UAN or EPF member details, and succession certificate if there is no nominee. Verification from the last employer can be submitted to the regional EPFO office. Online claims are also available. After document verification, the amount is transferred directly to the nominee’s bank account. Claims are settled within approximately 30 days.