Then just the other day, on 20th October 2023, the EPFO made substantive modifications in all the existing schemes which now certainly go ahead to protect PF account holders. Under this new Employees’ Deposit Linked Insurance (EDLI) insurance scheme, the insured amount has now been extended to become a benefit of ₹ 7 lakh for those employees who are eligible. This basically extends financial assistance to the nominees of PF accounts in the event of the demise of the account holder.
What Is The EDLI scheme?
The Employees’ Deposit Linked Insurance Scheme gives the facility of life cover to all members of EPF that, in case of death of an employee while on the job, fellow member receives a certain amount payable to his family as compensation. However, it is important to note that all employees covered under the EPF scheme take this benefit automatically without paying any extra premium for it.
Key Features Of The EDLI Scheme:
- Coverage of insurance; In case the employee dies while on duty, the nominee will receive a cash benefit up to ₹ 7 lakh.
- No additional payment: The employee is not liable to pay additional premium because this whole part of the insurance is taken care of by the employer.
- Portable: This is the case whereby the insurance continues in an event that the employee changes jobs, should he/she be a continuous EPF member.
- Easy to Claims Payments: Claimant or legal heir pays easy submission to EPFO for payment process-wise activity.
Who Can Avail This Benefit?
The EDLI scheme enrols all employees eligible automatically under the EPF scheme. This category covers employees from both the private and public sector in India contributing towards the EPF fund.
How To Claim ₹7 Lakh Benefit?
In case an employee demises during the course of service, his or her nominee or legal heirs can make a claim under EDLI. The process would basically involve:
- Completing Form 5 IF (EDLI claim form).
- Submitting this to EPFO along with presented documents like the death certificate and nomination certificate, including nominee details.
- Thereafter, processing will take place and the amount will be credited to the bank account of the nominee.
Conclusion
This would be the huge change that would bring relief among employees and their dependents as the assurance comes to a certain level in terms of having financial stability during crises. Extension of coverage to ₹ 7 lakh benefits employees with better security and support for their welfare. PF account holders are encouraged to update nominee details to avoid bottlenecks in processing claims.
Also Read: Unified Pension Scheme Announced: 50% Salary Pension For Govt Staff