PF Rule Change: Your EPF Account Comes With Rs 7 Lakh Free Benefits. Know Details

Apart from being a trusted investment scheme for salaried employees, the Employee Provident Fund also comes with a host of other benefits. One such benefit is the facility of an insurance scheme that’s available to EPFO account holders without any premium. Under the Employees’ Deposit Linked Insurance or EDLI scheme, 1976, provident fund account holders are eligible for assured life insurance benefits of up to Rs 7 lakh without having to pay any premium. This facility operated by the Employees’ Provident Fund Organisation (EPFO) is available to every PF account holder. The facilities under the EDLI scheme aren’t just limited to insurance benefits but spread across varied other benefits. EPFO recently shared a video on its Twitter timeline highlighting the benefits of EDLI linked insurance scheme.

https://twitter.com/socialepfo/status/1449627486552313858?s=20

Maximum assured Insurance Benefits

The legal heir or nominee of the PF account holder will be paid benefits of up to Rs 7 lakh in the event of the death of the EPF member in service. The cap over the benefits has been increased from Rs 6 lakh to Rs 7 lakh from April 2021

Minimum Assured Benefits

The minimum assured benefit under EDLI scheme 1976 is Rs 2.5 lakh provided the employee was in continuous implementation for at least 12 months prior to their death.

Free Benefits of up to Rs 7 lakh

Employees don’t have to pay any premium to avail the benefits of the insurance scheme and it’s free of cost for EPF/PF account holders. The premium for this insurance scheme is paid by the employer and is 0.50 per cent of the monthly wages with a cap of Rs 15,000.

Auto-Enrollment for PF account holder/EPF account holder

EPFO members don’t need to sign up for this scheme additionally. The members are entitled to EDLI scheme benefits once they become EPFO members or subscribers.

Direct Bank Transfer

The EDLI scheme benefits are linked directly to the bank account of the nominee or the legal heir of the employee. In case of the EPf account holders death, the benefits will be directly credited to this bank account

However, to get the claims of the benefits of the scheme nominee or legal heir will have to fill the form 51F and submit it to the EPFO. For further information about the scheme, please visit the EPFO website.

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