New Delhi: EPF or PF account holders will now get an insurance of Rs 7 lakh for free. EPFO members or Employees’ Provident Fund account holders can avail the benefit under the EDLI scheme. If an employee unfortunately dies during his or her service, then the nominee mentioned in the respective account will receive the insurance amount from EPFO under the Employees’ Deposit-Linked Insurance (EDLI) scheme.
Under the scheme, maximum limit for death benefits has been fixed at Rs 7 lakh. The minimum threshold has been kept at Rs 2.5 lakh. Earlier, the maximum amount was Rs 6 lakh. The changes are in effect from April, according to reports.
The EDLI scheme was implemented as part of the Employees’ Provident Fund and Miscellaneous Provisions Act (EPF and MP Act), 1952.
Under Employees’ Deposit-Linked Insurance(EDLI) scheme, employees don’t need to make any contribution. Employer’s need to contribute 0.5 per cent of PF wages limited to Rs 75 per month.
How To Claim Death Insurance Benefits
An employee, who has an EPF account, mentions the details of nominee in PF Form Number 2. The nominees can avail the death insurance benefits under EDLI scheme. However, the official nominee needs to make a claim in order to get the benefits.
If the nominee’s name is mentioned in the PF Nominee Form, then he or she needs to submit Form 20, 10 D and Form 5. The forms can be submitted online.
However, if the nominee’s name is not mentioned in PF nominee form then the online claim can not be made. He or she needs to visit the nearby PF office and include the name in nominee list and the make an offline claim.
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