EPFO provides free insurance upto Rs 7 lacs
The Employees Provident Fund Organization (EPFO) also provides life insurance facilities to its members. All subscribers of EPFO are covered under the Insurance Scheme 1976 (EDLI). The amount of the insurance cover is 20 times the EPFO member implants' wage, which is up to a maximum of Rs 7 lacs which updated in April 2021 from last maximum amount Rs. 6 lacs.
The EDLI (Employees Deposit Linked Insurance) scheme can be claimed on behalf of the nominee of the Member Employee by the Employee in case of illness, accident, or natural death. Now, this benefit will also be available to the aggrieved family of employees who has worked in more than one establishment within 12 months immediately before death. There is a lump sum payment. Employees do not have to pay any amount in EDLI.
Hom much does Employee and Employee contribute ?
Every Employer contributes 12% of the Employee Provident Fund or PF wage of employees to EPFO. 12% is also contributed by the employer. Out of the employer's 12% contribution, 8.33% of the Employee Pension Scheme goes to EPS and the rest to the EPF account.
In addition to the above, there is some contribution made by the employer, where employees do not have to make any kind of contribution to the EDLI scheme. The company collects the premium in exchange for the employee. The premium amount is 0.50% of the PF wage of the employee.
How to claim this PF EDLI Insurance amount?
1. You have to fill the forms like Form 20 (for EDLI), Form 10D/10C (for claiming the Provident Fund dues and Pension/Withdrawal Benefit as applicable).
2. All details should be in BLOCK LETTERS.
3. Provide bank details (better to attach a canceled cheque copy for accuracy of bank details).
4. Attach death certificate of a deceased employee.
5. Guardianship certificate (If the claim is on behalf of a minor family member/nominee/legal heir is by other than the natural guardian.)
6. Succession certificate (in case of a claim by the legal heir).
7. In case the members were last employed under an establishment exempted under the EPF Scheme 1952, the employer of such establishment should furnish the PF details of last 12 months under the Certificate part and also send an attested copy of the Member’s Nomination Form.
8. You have to send such a filled application to the EPFO Commissioner through the employer.
In case the company closed or they are not cooperating for a claim, then you have to get a claim form to be attested by anyone of following officials-Magistrate, A Gazetted Officer, Post/Sub-Post Master, President of the Village Panchayat, where there is not Union Board, Chairman/Secretary/Member of Municipal/District Local Board, MLA or MP, Member of CBT/Regional Committee EPF, Manager of the Bank in which the Bank Account is maintained or Head of any recognized educational institution.
9. A claim must be settled with 30 days of such submission.
However, if there is any fault in filling the form or processing, then you will receive the letter from EPFO for the same and that too within 30 days.
10. If EPFO does not settle the claim within 30 days, then EPFO Commissioner will be liable to pay the 12% per annum interest on such claim amount from the date of the set period for claim settlement.
2. All details should be in BLOCK LETTERS.
3. Provide bank details (better to attach a canceled cheque copy for accuracy of bank details).
4. Attach death certificate of a deceased employee.
5. Guardianship certificate (If the claim is on behalf of a minor family member/nominee/legal heir is by other than the natural guardian.)
6. Succession certificate (in case of a claim by the legal heir).
7. In case the members were last employed under an establishment exempted under the EPF Scheme 1952, the employer of such establishment should furnish the PF details of last 12 months under the Certificate part and also send an attested copy of the Member’s Nomination Form.
8. You have to send such a filled application to the EPFO Commissioner through the employer.
In case the company closed or they are not cooperating for a claim, then you have to get a claim form to be attested by anyone of following officials-Magistrate, A Gazetted Officer, Post/Sub-Post Master, President of the Village Panchayat, where there is not Union Board, Chairman/Secretary/Member of Municipal/District Local Board, MLA or MP, Member of CBT/Regional Committee EPF, Manager of the Bank in which the Bank Account is maintained or Head of any recognized educational institution.
9. A claim must be settled with 30 days of such submission.
However, if there is any fault in filling the form or processing, then you will receive the letter from EPFO for the same and that too within 30 days.
10. If EPFO does not settle the claim within 30 days, then EPFO Commissioner will be liable to pay the 12% per annum interest on such claim amount from the date of the set period for claim settlement.