EPFO Insurance Scheme: Every person gets the benefit of this insurance scheme of EPFO, whose PF money is deducted from his salary. Let’s know all the work related to this important scheme…
You must have known about the Employees Pension Scheme (EPS) of EPFO. After getting the option of higher pension, it has been discussed a lot in the last few months. Similarly, you will also have good knowledge about EPFO’s EPF scheme i.e. Provident Fund
. This fund serves as the biggest social security for private sector employees. But do you know that EPFO also gives the benefit of insurance, in which coverage of Rs 7 lakh is available?
3 schemes of EPFO
Today we are going to tell you all the things about this insurance scheme of EPFO. First of all, you should know that there are three main schemes of EPFO. First comes the EPF Scheme (EPF Scheme, 1952), under which the benefit of provident fund is available. After that there is the Pension Scheme of EPFO (Pension Scheme, 1995) i.e. EPS. Apart from these, there is another scheme, which is the Employees’ Deposit-Linked Insurance Scheme ie EDLI.
This scheme is very useful
The benefit of EDLI is available to every salaried person, from whose salary PF is deducted. This plan is of great use. For this reason, it is very important to understand EDLI well. Under EDLI, every salaried person gets an insurance cover of up to Rs 7 lakh, whose PF is deposited. If the person concerned dies suddenly, then in such a situation his family members get help of up to Rs 7 lakh from EPFO under this insurance. Its benefit goes to the nominee of the concerned person.
Contribution to EDLI
Another thing of EDLI is very special. You must have seen in your salary that EPF and EPS money is deducted from it, not EDLI. This is the reason why many people are not aware of EDLI and its benefits. The employee also gives contribution under EPF and EPS, while the contribution of EDLI is taken only from the employer i.e. your company.
How much is the contribution?
Now let us know how much contribution goes in EDLI 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 your job, you continue to get the benefit of this scheme. The only condition is that you have worked continuously for at least one year and your PF has been accumulating.
How is coverage calculated?
Now the most important thing is how the coverage is calculated. The scope of coverage is based on the average monthly salary of the employee during the last 12 months. EPFO provides a cover equal to 35 times that average. However, the maximum limit of average monthly salary in this is 15 thousand rupees.
In this way, the coverage of 35 times of 15 thousand i.e. 5.25 lakh rupees 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.
How to claim insurance?
The process of taking advantage of it ie claiming is easy. If a salaried person in your family dies suddenly, in such a situation the nominee can claim the insurance. Nominee will have to claim PF, pension and EDLI through composite claim form. In this process, documents like death certificate, succession certificate are required. You also have to give the canceled check of the account in which you want the payment.
LIC Pension Plan….Invest just once, then you will get pension every month
