Employees Provident Fund News: With almost every government scheme, there is some silent feature, about which the common man is not aware, but this silent feature is of great use. One such feature is associated with the Employees Provident Fund.
We are talking about life insurance available with Provident Fund. Every employee gets life insurance cover up to Rs 7 lakh with EPF account and that too absolutely free. EPFO provides insurance facility to all its members with their account. And this insurance is linked with the PF account of the employee. The most important thing is that this insurance is absolutely free. For this the employee does not have to contribute anything.
If a member of the Employees’ Provident Fund Organization (EPFO) dies suddenly, then his nominee can claim the amount of Life Insurance.
Insurance cover available under EDLIs
EPFO members get life insurance cover under Employee Deposit Linked Insurance Scheme (EDIL Insurance cover). Under this scheme, a maximum of Rs 7 lakh can be paid to the nominee on the death of an EPFO member.
Earlier its limit was Rs 3.60 lakh. After this this limit was increased to Rs 6 lakh. In September last year, this limit was increased to Rs 7 lakh. The limit of bonus was also increased from 1.5 lakh to 2.5 lakh rupees.
Calculation of Life Insurance Claim On the
death of a member of EPFO, his nominee gets 30 times the average salary of the last one year along with a bonus of 20 percent.2
This calculation can be understood as follows. If the basic income of an employee is Rs 15,000 per month. If you do this 30 times, then this amount becomes Rs 4,50,000. And now a bonus of Rs 2,50,000 will be added to this, so this amount becomes Rs 7 lakh. The maximum insurance claim is up to Rs 7 lakh.
Claim
On the death of the EPFO member, the nominee of the account can claim the sum assured. For this, the insurance company will need to provide documents like death certificate and bank details. If there is no nominee, then the legal heir can claim this amount.
No claim after retirement
This insurance on the EPF account can be claimed only if the death of the PF account holder happened while in service. During this, whether he is working in the office or on leave. It does not matter. Nominee can claim money. The sum assured cannot be claimed after retirement.
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