All EPFO members get coverage under the Employees Deposit Linked Insurance Scheme (EDLI) 1976. In this, insurance cover can be provided in case of illness, accident or natural death of the employee. The legal heirs of the employee can get help up to Rs 7 lakh. Let us know what are the conditions to avail this scheme and how the claim amount is calculated in it.
Insurance cover has become very important in today’s times. This secures the financial future of the family. This is the reason why most people get their house and car insured. But, there is a scheme of the government in which you get the benefit of insurance of Rs 7 lakh without spending a single penny.
how to get insurance
If you are employed and Provident Fund (PF) is deducted from your salary, then you will get an insurance of Rs 7 lakh. The best thing is that you do not have to pay a single rupee as premium. This insurance is available from the Employees Provident Fund Organization (EPFO).
Actually, all the members of EPFO get coverage under the Employees Deposit Linked Insurance Scheme (EDLI) 1976. In this, insurance cover can be provided in case of illness, accident or natural death of the employee. In such a case, the nominee or legal heirs of the employee can get help up to Rs 7 lakh.
How is the insurance amount decided?
0.5% of the PF deducted from the employee’s salary is deposited in the EDLI scheme. The amount you will get in the ELDI scheme is decided on the basis of your last 12 months’ salary. The claim for insurance cover will be 35 times the last basic salary plus DA. Apart from this, a bonus amount of up to Rs 1,75,000 is also available.
For example, if an employee’s average salary plus DA for the last 12 months is Rs 15,000. In this case, the claim amount will be 35 x 15,000 i.e. Rs 5,25,000. Adding a bonus of Rs 1,75,000 to this, the total claim amount will be Rs 7 lakh.
How much do you get as insurance claim
Under the EDLI scheme, one can get a minimum insurance claim of Rs 2.5 lakh and a maximum of Rs 7 lakh. However, the condition for minimum claim is that the employee has been working continuously for at least 12 months. Account holders who leave the job do not get this benefit.
Claim on this insurance can be made only in case of death during employment. Whether it is in office or on leave. But, this insurance claim is not available after retirement. While making insurance claim, documents like death certificate and succession certificate are required.
If the claim is being made by the guardian of a minor, then guardianship certificate and bank details will also have to be submitted.
