If you work in a government or private company and your PF is deducted, then your family can get Rs 7 lakh. For this, it is most important that you file EPF nominations digitally as soon as possible.
The Employees’ Provident Fund Organization (EPFO) has extended the last date for adding nominees through online e-nomination. The last date was 31st December 2021 which has been extended. However, as of now no deadline has been fixed for e-nomination. Explain that every member of EPFO gets the facility of insurance cover under the Employee Deposit Linked Insurance Scheme.
In this, a maximum of Rs 7 lakh is paid to the nominee under the insurance cover. Let us tell you that in the year 2021, the limit of sum insured given under the Employee Deposit Linked Insurance Scheme, 1976 (EDLI Scheme) has now been increased from Rs.6 lakh to Rs.7 lakh.
Know what is EDLI Scheme?
EDLI scheme is provided to all the customers of PF account holders to contribute towards life insurance. EDLI provides for a lump sum payment to the designated beneficiary of the insured in case of death due to natural causes, illness or accident. The objective of this scheme is to provide financial security to the family member after the death of the employee. This benefit is given to the employee by the company and the central government.
How to calculate claim amount?
In the EDLI scheme, the claim is calculated on the basis of the basic salary + DA of the last 12 months received by the employee. Under the latest amendment, now the claim of this insurance cover will be 35 times of the last basic salary + DA, which was 30 times earlier. Also, now there will be a maximum bonus of Rs 1.75 lakh, which was earlier Rs 1.50 lakh maximum. This bonus is considered to be 50% of the average PF balance during the last 12 months. For example, if the basic salary + DA for the last 12 months is Rs 15000 then the insurance claim is (35 x 15,000) + 1,75,000 = Rs 7 lakh. This is the maximum claim.
Know who can claim?
This amount of the EDLI scheme is claimed on the death of the PF account holder on behalf of the nominee. If someone does not have a nominee, then this claim is given to the legal heir. That is, if there is no nomination under the scheme, then the spouse of the deceased employee, his unmarried daughters and minor sons are its beneficiaries. A lump sum payment is made under the scheme. For this the employee does not have to pay any amount. That is, this insurance cover is available to the subscriber free of cost. It gets linked with PF account only. It can also be taken in case of death due to Covid-19.
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