EPFO Insurance Scheme: If you invest in EPFO, then this news can be of great use to you. In this investment, account holders get insurance up to Rs 7 lakh. For which they do not need to pay any premium.
EPFO provides insurance facility to its account holders absolutely free of cost. Explain that all the members of EPFO are eligible to avail this facility. If an EPFO member dies untimely, then his insurance can be claimed. Let us know what are the rules related to this facility.
EPFO mainly runs three such schemes (EPFO Insurance Scheme) for its account holders…
1. There is EPF Scheme (EPF Scheme, 1952), in which the benefit of Provident Fund is available.
2. Pension Scheme of EPFO (Pension Scheme, 1995) which is also known as EPS.
3. EDLI (EDLI) It is also called Employees’ Deposit-Linked Insurance Scheme.
The benefit of EDLI is given to the person from whose salary PF is deducted. This scheme is very important, so it is important to understand it. Under EDLI (EPFO Insurance Scheme), each employee gets an insurance cover of up to Rs 7 lakh, which is deposited in PF. If an employee dies suddenly, then his family gets help of up to Rs 7 lakh from EPFO under this insurance. Its nominee gets its benefit.
One special thing about EDLI is that there is no provision for deduction from salary, as is the case in EPF and EPS. That’s why many people are not aware about EDLI and its benefits. In EPF and EPS, the employee also has to contribute, whereas in EDLI, the contribution is made only by the employer.
Now let us know how much contribution goes in EDLI (EPFO Insurance Scheme) and how it is calculated. Under the EDLI scheme, a contribution equal to 0.5% of the employee’s basic salary and DA is made, subject to a maximum of Rs 75. Even if you change jobs, you continue to get the benefit of this scheme. The condition for this is that you have worked continuously for at least the last one year and your PF is also accumulated.
Now the most important thing is how the coverage is calculated. The average monthly salary of the employee during the last 12 months is taken as the basis and EPFO provides a cover equal to 35 times of that average. However, the maximum limit of average monthly salary in this is 15 thousand rupees. In this way, 35 times of 15 thousand ie Rs 5.25 lakh coverage is automatically available. On top of that, a bonus of up to Rs 1.75 lakh is given by the organization, taking the total coverage to Rs 7 lakh. In case of death of an employee, his nominee gets PF, pension and EDLI benefits through a composite claim form. Claim has to be made. Documents like death certificate, succession certificate are required in this process. A canceled check is also to be given for the account in which the amount will be sent for payment.
