New Delhi: The working employee knows about the Provident Subsistence Fund ie PF. But what we are going to tell you today, you may not know. Yes, the working employee gets an insurance cover of 7 lakhs.
Salaried people invest in the Employees’ Provident Fund (EPF) as well as get the benefit of the insurance scheme. Provides insurance cover facility to all EPFO members under the Employees’ Deposit Linked Insurance (EDLI) scheme. To take advantage of EDLI, 0.5 percent of salary is contributed every month. Its maximum limit has been fixed at Rs 15,000. But, the most important thing about this scheme is that the employees do not have to make any contribution. Let us know about this insurance scheme available under the Employees’ Provident Fund.
No employee has to enroll separately to take advantage of the EDLI scheme. If an employee is getting benefits under the PF scheme, then they are automatically enrolled for the EDLI scheme. Employees’ Provident Fund has three parts. One provident fund, second company/employer’s contribution which goes to Employees’ Pension Scheme and third part goes to EDLI. The maximum benefit under the EDLI scheme is Rs.7 lakh. The minimum benefit amount under this scheme is Rs 2.50 lakh and it does not depend on the salary of the employees.
It is necessary to work for at least 12 months
The benefit of insurance under the EDLI scheme is also available to the eligible members of the family. The condition for this is that the employee has to work for at least 12 consecutive months. However, it does not matter that the employee has worked in the same company during these 12 months in multiple companies. The benefit of the EDLI scheme is available to the nominee, the eligible member of the family.
Benefits of insurance under the scheme
The nominee or eligible family members get a maximum insurance cover of Rs 7 lakh under this scheme. The amount of insurance coverage does not depend on the salary of the employee. After the most recent revision, the sum assured is calculated on the basis of the formula given below: Average salary of last 12 months X 35 + Last 12 months 50% of PF balance amount. The amount of PF balance in the last 12 months should not exceed Rs 1,75,000. Average salary includes basic salary and dearness allowance. It does not exceed Rs 15,000. Even after applying this formula, the minimum profit cannot be less than Rs 2,50,000. Now let us understand it with the help of an example.
Suppose your average salary for the last 12 months is Rs 18,000 and PF balance is Rs 2 lakh during this period. In such a situation, you will get a maximum benefit of Rs 7 lakh. (15,000 X 35 + 1,75,000)
How to claim the benefit of this insurance?
Form IF has to be filled to claim insurance benefits under this scheme of EDLI. Apart from this, all supporting documents are also required. The claim amount will be released by the commissioner after verification of the application form for the claim. The claim amount will be sent directly to the beneficiary’s bank account.
