EPFO Insurance Rules: If you are a PF account holder, this news could be very special for you. The EPFO, the PF account issuing body, is offering account holders a special benefit. People will be thrilled to learn about this feature. The EPFO provides insurance cover of up to Rs 7 lakh to those holding a PF account. The family can benefit from this claim. Let’s explore this in detail.
Being an EPF member automatically provides you with coverage under EDLI. This scheme is a life insurance facility offered by the EPFO. It is considered the third largest benefit available alongside EPF and EPS. Its special feature is that the employee does not have to pay any premium. The entire cost is borne by the company, making this benefit completely free. The premium in the EDLI scheme is paid not by the employee but by the company.
According to the rules, the company contributes 0.5% of the employee’s salary, i.e., basic salary plus DA, to this scheme every month. This deduction is made directly by the company. Therefore, no amount is deducted from the employee’s salary. This is why this scheme is considered very beneficial for employed people.
This cover is activated only when the employee dies while on duty. Whether in the office, at home, or on leave. This insurance remains fully applicable regardless of the circumstances. In such cases, financial assistance is provided to the employee’s family or nominee.
The amount received under EDLI is divided into two parts. The minimum cover is ₹2.5 lakh, while the maximum limit is ₹7 lakh. The average salary of the employee for the last 12 months and the balance in the PF account are considered when setting up the account.
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The amount received under EDLI is divided into two parts. In this, a minimum benefit of Rs 2.5 lakh is available. While the maximum benefit is Rs 7 lakh. While deciding the account, the average salary of the employee for the last 12 months and the amount deposited in the PF account is considered as the basis.
All PF account holders get the benefit of this scheme of EPFO. PF is deducted. Whether she is a permanent employee or is working on contract. As soon as your PF account is active, you become a part of the EDLI scheme. This facility applies to almost all the industries of the country and provides security to lakhs of families.