Employees Deposit linked Insurance; EPF linked Insurance

 

Do you have an insurance cover provided above your Provident fund?

You will be surprised to hear that there is insurance given by the Government of India against your provident fund. To check how to get benefits of this insurance. Please read this article carefully. This article will also help in checking your eligibility for free insurance provided by the government of Indian against provident fund and method of arriving at insurance coverage.

No employer or employee pays any premium for getting this insurance as this insurance is provided by EPFO without any charges to any person means insurance cost will be borne by EPFO itself.

Employee Deposit linked Insurance (EPF EDLIs) against EPF:

A Provident Fund account functions like a savings bank account and offers several advantages, including decent interest, a retirement corpus, and insurance in the event of early retirement or disability. Every EPFO account automatically includes free insurance coverage. With an Employees Provident Fund (EPF) account, workers can acquire life insurance for up to Rs.7 lakh through the Employees Deposit Linked Insurance Scheme. It also includes information about the Covid-19 pandemic (EPF COVID Claim). If a worker contracts Covid-19 on the job, his or her family might receive up to Rs.7 lakh in death benefits from the employer's group insurance plan (EDLI).

The EPF account serves as a gateway to insurance.

Your PF account is tied in with a life insurance policy. During his or her employment, no worker contributes anything toward this. Any EPFO member's nominee can collect the life insurance payout in the event of the member's untimely demise.

In 2020, the sum increased due to COVID-19:-

Members of the EPFO can acquire insurance through the Employee Deposit Linked Insurance Scheme (EDLI Insurance cover). The insurance payout to the beneficiary under the scheme cannot exceed Rs.7 lakh (EPF COVID Claim). There used to be a cap of Rs.3,60,000. After that, the maximum was raised to Rs.6 lakh, and then again, in September of 2020, to Rs.7 lakh. The maximum bonus amount has also been raised, this time from Rs 1.5 Lakh to Rs.2.5 lakh.

When filing an EPF COVID claim, how much money will I receive?

The employee's nominee will get 30 times the employee's 12-month average wage plus a 20% bonus in the event of the employee's death. Assuming the current basic income cap of Rs.15,000, this equates to a total of Rs.4,50,000 i.e. 30 times the basic income. Additionally, the claimant will receive a bonus of Rs.2,50,000. There is a cap of Rs.7 lakh on this total.

COVID Claims:-

Bhanu Pratap Sharma, a retired enforcement officer with the EPFO, says that a beneficiary named in a PF account can collect the insurance pay-out in the event of the account holder's death. A death certificate, a succession certificate, and the insurance company's banking information will be required for this. Furthermore, it can be used in the event of a Covid-19-related fatality (EPF COVID Claim). In the absence of a designated beneficiary, the successor as per laws is entitled to the funds. Withdrawing funds from your PF account requires filing both a Withdrawal Request Form and an Insurance Coverage Verification Form with your employer. The company checks this document. Then the beneficiary receives the insurance payment.

Upon retirement, this benefit cannot be claimed:-

EPFO Enforcement Officer Gopichand Arora states that in order to collect on the PF account's death benefit, the account holder must have died while still employed. Whether he is on vacation or working, this policy will remain valid; the money is available for the nominee to collect in case of any incident as mentioned above.