Insurance cover up to 7 lakhs is available on the death of the employee who deducts PF.
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The amount of life insurance has been increased from last month, the limit of minimum and maximum amount has been fixed
Under the Employee Deposit Link Insurance Scheme of the Employee Provident Fund Organization, the active members of the Provident Fund i.e. those who are in employment and whose funds are being deducted. The benefit of life insurance is given for those employees. Sometime back the benefit which was given to the people with active provident fund account has been increased from 15th February 2020. The amount of life insurance benefit has been increased. The benefits given in the form of Employee Deposit Link Insurance are being passed on to the active employees. On 15 February 2020, those with an active account were given an insurance cover of 2.5 lakhs. If the employee dies due to any reason, then they will get the benefit of this scheme. An amount of Rs 2.5 lakh is given to the family members of the deceased.
The maximum benefit amount under this scheme has been increased to 700000 from 28 April 2021 for the next 3 years. To take advantage of this scheme, people whose provident fund is being deposited, such people do not have to pay any premium. In a private company, a small premium is charged along with the amount deposited by the company in the provident fund on behalf of the owner. However, many private companies do not participate in the Employee Link Insurance Scheme. They are also exempted from this scheme on the condition of taking a good plan. For this, a condition is also laid that no deduction is made from the salary of the employees. Private companies take group term insurance. It is not mandatory for companies to join EDLI while taking group insurance. In the event of the death of the employee involved in the EDLI scheme, then his family members get the sum insured.
The employed person gets the benefit of insurance in the proof of monthly monthly salary, dearness allowance and average amount out of his provident account. Its minimum and maximum amount has been fixed. Only people who get a salary of 15000 per month get the benefit of this scheme. It is seen that the average salary received by the employee in the first 12 months after his death. Apart from this, the average amount in his Provident Fund account in the last 12 months is 50%, he gets this benefit. The maximum limit of an average amount is two and a half lakhs. If we talk out of the system, then the person with the job should get insurance of 2.5 lakhs. To calculate the sum insured, if we talk with an example, then the monthly salary received by him in the last 12 months of his death is 20000 and the average provident fund balance in his account is 200000, he gets an insurance cover of 70000 rupees. In such Sanjog, his average monthly salary is calculated as 15000 and multiplied by 35. Earlier it was multiplied by 30. On multiplying this, 200000 is added to it. Which when added becomes 725000. In this situation, the amount he gets is considered to be 700000 which his heir gets. This amount of life insurance helps the family of the deceased to meet the immediate financial needs. Form number 5 has to be filled on behalf of the PF office. With this, this amount is available after completing the necessary formalities.