The Employees’ Provident Fund Organisation (EPFO) has decided to extend the minimum assurance benefit under the Employees’ Deposit Linked Insurance (EDLI) scheme.
According to financial express, the decision in this regard was taken in the 226th meeting of the Central Board of Trustees (CBT). Now, the benefit will be provided to the family members of a deceased employee, who dies while in service, even if he has worked in several firms in the year preceding his death.
The decision to change the provision for providing the minimum assurance benefit comes two years after the CBT had decided to hike the minimum assurance limit to Rs 2.5 lakh from Rs 1.5 lakh in 2018. The assurance benefit an eligible employee can get under the EDLI scheme is capped at Rs 6 lakh.
This benefit was previously not paid if the member worked in more than one establishment during a continuous period o 12 months preceding his death.
“The Board recommended extending the provision of minimum assurance benefit of Rs. 2.5/3 Lakh, payable to family members of a deceased employee who dies while in service. Earlier, the benefit of minimum assurance of Rs. 2.5 Lakh and maximum assurance amount of Rs.6 Lakh was not payable where the member worked in more than one establishment during a continuous period of 12 months preceding the month of death. Now Board has approved to extend these benefits even if a member had worked in multiple establishments,” the Ministry of Labour and Employment said in a statement on March 5.
EPF members are automatically covered under the EDLI scheme, which provides for payment of Rs 2.5 – Rs 6 lakh to an employee’s nominee in the event of his death during service.
Employees Deposit Linked Insurance Scheme
Employees Deposit Linked Insurance Scheme or EDLI is an insurance cover provided by the EPFO (Employees Provident Fund Organisation) for private sector salaried employees. The registered nominee receives a lump-sum payment in the event of the death of the person insured, during the period of the service.
EDLI applies to all organizations registered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. All such organizations must subscribe to this scheme and offer life insurance benefits to its employees. This scheme works in combination with EPF and EPS.
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