Members of EPFO: Excellent news! PF account holders get a free benefit of Rs. 7 lakh; hence, focus on this

 Members of EPFO: Excellent news! PF account holders get a free benefit of Rs. 7 lakh; hence, focus on this

Let us inform you that all members of the Employees Provident Fund Organization (EPFO) are eligible for life insurance. Every EPFO member is eligible for a maximum insurance cover of Rs 7 lakh under this provision. Do this effort ahead of time if you want to benefit from it as well.

All members of the Employees Provident Fund Organization (EPFO) are eligible for life insurance. Every EPFO member is eligible for a maximum insurance coverage of Rs 7 lakh under this provision. Employees Deposit Linked Insurance is the name of an EPFO insurance program (EDLI).

In 1976, this plan was initiated. You have to be aware of this program if you work and are an EPFO member. Allow us to explain when this plan is available to you and how the claim amount is determined.

When someone dies, the family receives financial support.

The purpose of EPFO's program is to provide the employee's family financial stability. The heir or nominee of an EPFO member may receive this insurance sum in the event of the member's death. What makes this insurance unique is that it is provided to all employees who work for private companies at no cost at all. The employer contributes to this program with 0.50 percent of the employee's base pay and dearness allowance.

How is the amount of the claim determined?

You might be wondering how this policy, which offers free insurance up to a maximum of Rs 7 lakh, determines the claim amount. Let us inform you that the insurance amount is determined by the previous year's DA and basic wage. The amount of the insurance claim will be 35 times the previous base pay plus DA. In addition, the claimant receives a bonus payment of up to Rs 1,75,000 in addition to this. For instance, if an employee's base pay plus overtime (DA) for the previous 12 months was Rs. 15,000, the insurance claim amount would be (35 x 15,000) + 1,75,000 = Rs. 7,00,000.

How to assert:

The nominee or legal heir of an EPF subscriber may make an insurance claim in the event of their untimely death. The candidate must be at least eighteen years old to qualify for this. His parents may file a claim on his behalf if it is less than this amount. Documents such as a death certificate and a succession certificate are needed when filing a claim. Provide the guardianship certificate and bank account information if the claim is being lodged on behalf of the minor's guardian.

Guidelines about EDLI:

In the event that an employee becomes sick, is involved in an accident, or passes away naturally while at work, an EDLI claim may be lodged.

The EDLI program only covers the EPFO member when he is working. His heirs, nominees, or relatives are not eligible to claim it once he quits.

The nominee will get a benefit of at least Rs 2.5 lakh upon the employee's death if the EPFO member has been employed consistently for a full year.

In the event that no nomination is made under the EDLI plan, the coverage is deemed to be in the name of the dead employee's spouse, single daughters, and minor son or boys.

Form 5 IF of the insurance cover must be presented in addition to the form that has to be turned in to the employer in order to take money out of the PF account. Employer verification is provided.