PF Update: PF account holders get free insurance of Rs 7 lakh, know when they can claim...
EDLI Scheme for EPFO members: You know that if your PF is deducted then you can get life insurance up to Rs 7 lakh. EPFO provides a life insurance facility to all its members under the EDLI scheme. Under this facility, each EPFO member gets an insurance cover up to a maximum of Rs 7 lakh. This insurance scheme of EPFO is known as Employee Deposit Linked Insurance i.e. EDLI. Know the special things related to this scheme.
Know what EDLI scheme-
EDLI scheme was started by EPFO in 1976. Under this scheme, if an EPFO member dies, the deposited amount is given to his family. This insurance cover is given free, the share of which is paid by the company.
How is the amount decided?
The sum assured depends on the basic salary and DA of the last 12 months. The claim for insurance cover is 35 times the last basic pay + DA. Apart from this, a bonus amount up to Rs 1,75,000 is also given to the claimant.
EDLI scheme claim cannot be received after job-
An EPFO member is covered by the EDLI scheme only as long as he is employed. After leaving the job, his family/heir/nominee cannot claim. If the EPFO member has been working continuously for 12 months then the nominee gets a benefit of at least Rs 2.5 lakh after the death of the employee.
When can you make a claim-
Under this scheme, the family of the member can claim only if the EPFO member dies due to illness, accident, or natural death while working. If there is no nomination under the EDLI scheme, coverage extends to the spouse, unmarried daughters, and minor son/sons of the deceased employee.
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