EPFO insurance- All subscribers are covered under Employees Deposit Linked Insurance Scheme (EDLI) 1976. Under this, EPFO members get insurance cover up to Rs 7 lakh. The special thing is that no premium has to be paid for this.
More than 4.50 crore people are associated with the Employees Provident Fund Organization. The PF of the people doing the job gets deducted. The money deposited in PF account is the biggest future capital.
Apart from securing the future, PF also gives the benefit of insurance of Rs 7 lakh for free. All subscribers (members) of EPFO are covered under the Employees Deposit Linked Insurance Scheme (EDLI) 1976. In such a situation, if an employee dies during the job, then his nominee can get financial assistance of up to 7 lakhs under this scheme.
The insurance amount received under the EDLI scheme depends on the salary of the last 12 months. Every month, 8.33 percent of the amount of PF deposited from the employee’s salary is deposited in EPS, 3.67 percent in EPF and 0.5 percent in EDLI scheme. Insurance cover can be provided in case of illness, accident or natural death of the employee.
Lump Sum Money
After the death of the employee, the sum assured goes to the person nominated by the subscriber. The nominee makes a claim for the sum assured and gets this money in one go. If no one has a nominee, then the legal heirs get the sum assured equally.
There is no Benefit on Leaving the job
Under the EDLI scheme, any account holder can get a minimum insurance claim of Rs 2.5 lakh and a maximum of Rs 7 lakh. To get the minimum claim, it is necessary for the account holder to have a job for at least 12 consecutive months. The benefit of insurance is not given to the account holder who leaves the job.
Do Make Nomination
EPFO subscribers must register the name of the nominee in their account. The biggest advantage of having a nominee in the account is that if an account holder dies, his family does not face any difficulty in availing the benefits of EPF, EPS and EDLI schemes. On the other hand, if the name of the nominee is not added in any account, then in such a situation, all the legal heirs of the account holder have to do a lot of paperwork to get the money. Due to this it takes time to get the claim.
