PF account holders in the Employees’ Provident Fund Organization (EPFO) get an insurance cover of Rs 7 lakh. For this, the employees do not have to make any extra payment. The family of the employee gets the benefit of this.
If you also have a PF account in the Employees’ Provident Fund Organization (EPFO), then you will get the benefit of Rs 7 lakh without doing anything. Actually, EPFO subscribers get the facility of insurance cover under the Employee Deposit Linked Insurance Scheme (EDLI). In the scheme, a maximum insurance cover of Rs 7 lakh is paid to the nominee. People working in private companies also get free benefit of insurance cover up to Rs 7 lakh.
Under what circumstances do you get 7 lakh rupees?
EDLI scheme can be claimed on behalf of the nominee of the member employee in case of illness, accident or natural death of the employee. Now this cover is also available to the aggrieved family of those employees who have worked in more than one establishment within 12 months immediately before the death.
You don’t have to pay
The employee does not have to make any payment under the scheme. If there is no nomination under the scheme, then the spouse, unmarried daughters and minor sons of the deceased employee will be considered as beneficiaries. If the claimant is a minor (below 18 years of age), then his guardian can claim on his behalf.
These documents are required
To withdraw money from the Provident Fund account, Form-5 IF of insurance cover will also have to be submitted along with the form to be submitted with the employer. The employer will verify this form. If the employer is not available, the form can be verified by any of the Gazetted Officer, Magistrate, President of Gram Panchayat, Chairman/Secretary/Member of Municipal or District Local Board, Postmaster or Sub Postmaster.
E-nomination facility has also started
EPFO has now started the facility of e-nomination to give the information of the nominee. Those who are not enrolled in this, they are being given a chance. After this information like name of the nominee, date of birth will be updated online.
