This time around last month, the Employees’ Provident Fund Organisation (EPFO) has rolled out quite a number of changes to the Employees’ Deposit Linked Insurance scheme. This is a scheme that is mainly meant to protect the employees and their family from any kind of financial catastrophe due to an untoward incident occurring in their lives. In other words, it is expected that the recently amended scheme of EDLI will provide high insurance coverage to greater numbers of people. Let us now get into some of the changes made with respect to the benefits given to the members of EPFO.
What Is EDLI scheme?
This is a social security provision enacted under the banner of EPFO. Basically, it is a life insurance for all employees that join under the Employees’ Provident Fund Association. A claim would not occur until the employee dies; respective nominee family members/legal heirs would claim death benefits under the insurance on the demise of the said employee. Such a scheme is meant to guard the financial interests of family survivors left behind by the dead employees.
Major Changes In The EDLI Scheme
1. Increase Maximum Insurance Coverage
Maximum insurance claim amount under EDLI scheme has now been increased from Rs 7 lakh to Rs 10 lakh. Such a rise can grab hold of the proverbial wood dragon and zephyrise all financial arrangements for the family members of a deceased employee.
2. Eligibility Widened
Until now, only employees who were actively making contributions to their EPF accounts were eligible under the EDLI scheme. But this new change has insured those who had left their employment up to 12 months ago. This extension provides greater coverage to all employees.
3. Improvements For Casual Workers And Contractual Workers
The revised regulations are also targeted at extending a better scheme for these employees so that they are placed on an equal footing under EDLI. The employers must ensure that these workers must receive EPF coverage and benefit from the insurance scheme.
4. No Additional Premium
One of the most benefits of the EDLI scheme is that an employee does not have to pay any extra premium for the insurance cover being offered. The complete premium, of course, is paid by the employer towards his contribution to EPF.
Who Gets Benefits?
- Families of Deceased Employees: With the new insurance limit, families will receive a higher lump sum amount in case of the employee’s death.
- Employees Near Retirement: Those who may have recently left their jobs remain insured for a longer time, enabling them a sense of security.
- Contractual Workers: Including more categories of workers ensure an equitable shield for all employees.
Conclusion
The changes regarding the EDLI scheme are a positive step taken by EPFO, aimed at strengthening the FAW for employees and their families. Employees should verify their EPF account details and nominate beneficiaries, as this will ensure easier settlement in the event of a claim. Keep yourself updated and make the most of your employee benefits.
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