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. 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.
In today’s era, insurance cover has become very important. 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 insurance of Rs 7 lakh. The best thing is that you will 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 situation, 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 salary of the employee is deposited in the EDLI scheme. How much amount you will get in the ELDI scheme is decided on the basis of your salary of the last 12 months. The claim of insurance cover will be 35 times the last basic salary plus DA. Along with this, a bonus amount of up to 1,75,000 is also available.
For example, if the average salary of an employee for the last 12 months plus DA 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 insurance claim is available
Under the EDLI scheme, one can get an insurance claim of at least Rs 2.5 lakh and a maximum of Rs 7 lakh. However, the condition for the 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 on death during the job. Whether it is in the office or on leave. But, this insurance claim is not available after retirement. While making an insurance claim, documents like death certificate and succession certificate are sought.
If the claim is being made by the guardian of a minor, then guardianship certificate and bank details will also have to be given.
Also Read-
- Atal Pension Yojana: By depositing only 7 rupees per day, you will get 60,000 rupees pension for life, see calculation
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- LIC’s superhit policy! You will get guarantee of security and savings, will also save tax in two ways
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