EPFO Rules: PF account holders get a free benefit of Rs 7 lakh, know the rules of EPFO..

EDLI scheme was started by EPFO in 1976. If for any reason an EPFO member dies, it was started to provide financial help to his family. This insurance cover is given free of cost. Contribution to the EDLI scheme is made by the company.

Know what is EDLI scheme-

EDLI scheme was started by EPFO in 1976. If for any reason an EPFO member dies, it was started to provide financial help to his family. This insurance cover is given free of cost. Contribution to the EDLI scheme is made by the company.

How is the amount decided-

The insurance amount depends on the basic salary and DA of the last 12 months. The claim for insurance coverage will be 35 times the last basic salary + DA. Apart from this, a bonus amount of up to Rs 1,75,000 is also paid to the claimant.

Insurance cover as long as you are employed-

The EPFO member is covered by the EDLI scheme only as long as he is employed. After leaving the job, his family/heirs/nominees cannot claim it. If the EPFO member has been working continuously for 12 months, then after the death of the employee, the nominee will get a benefit of at least Rs 2.5 lakh.

If there is no nomination then these will be eligible-

EDLI can be claimed in case of illness, accident, or natural death of an employee while working. If there is no nomination under the EDLI scheme, then the coverage is considered as the spouse, unmarried daughters, and minor sons/sons of the deceased employee are considered beneficiaries.

How to claim-

If the EPF subscriber dies untimely, his nominee or legal heir can claim insurance cover. For this, the age of the nominee should be at least 18 years. If it is less than this, the parents can claim on his behalf. While making a claim, documents like a death certificate, and succession certificate are required. If the claim is being made on behalf of the minor's guardian, then a guardianship certificate and bank details will have to be given.

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