EPFO 7 Lakh Insurance: Have You Got EPFO’s 7 Lakh Insurance? You Get Benefits Without Paying 1 Rupee, Know All About This Scheme

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You must know about Employees Pension Scheme (EPS) of EPFO. After getting the option of higher pension, it has been much discussed in the last few months. Similarly, you will also have a good knowledge about the EPF Scheme i.e. Provident Fund of EPFO. This fund acts as the largest social security for private sector employees. But did you know that EPFO also offers insurance benefits, with a coverage of up to Rs 7 lakh?

EPFOof 3 Plans

Today we are going to tell you all about this insurance plan of EPFO. First of all, you should know that EPFO has three main schemes. First comes the EPF Scheme (EPF Scheme, 1952), under which provident fund benefits are available. Then there is the Pension Scheme of EPFO (Pension Scheme, 1995) i.e. EPS. Apart from this there is another scheme, which is Employees Deposit-Linked Insurance Scheme i.e. EDLI.

This scheme is very useful

The benefit of EDLI is available to every salaried person, from whose salary PF is deducted. This scheme is very useful. For this reason, it is very important to understand EDLI well. Under EDLI, every salaried person gets an insurance cover of up to Rs 7 lakh, which is credited to PF. In case of sudden death of the concerned person, in such a situation his family members get help of up to Rs 7 lakh from EPFO under this insurance. Its benefit goes to the nominee of the person concerned.

EDLI Contribute to

Another thing about EDLI is very special. You must have seen in your salary that EPF and EPS money is deducted from it and not from EDLI. This is the reason why many people are not aware of EDLI and its benefits. Employee contributes under EPF and EPS also, whereas EDLI contribution is taken only from the employer i.e. your company.

How much is the contribution??

Now let’s know how much contribution goes to EDLI and how it is calculated. Under the EDLI scheme, a contribution equal to 0.5% of the basic pay and DA of the employee is made, up to a maximum of Rs. 75 subject to s. Even if you change your job, you continue to get the benefits of this scheme. The only condition is that you have worked continuously for at least one year and your PF continues to accumulate.

How coverage is calculated?

Now the most important thing is how the coverage is calculated. The scope of coverage is based on the average monthly salary of the employee during the last 12 months. EPFO provides 35 times the average cover. However, in this the maximum limit of average monthly salary is 15 thousand rupees. In this way, coverage of 35 times of 15 thousand i.e. 5.25 lakh rupees is automatically available. On top of that, the institute offers a bonus of up to Rs 1.75 lakh, taking the total coverage to Rs 7 lakh.

How to make an insurance claim?

The process of availing it i.e. claiming is easy. If an employee in your family dies suddenly, in such a situation nominee insurance can be claimed. Nominee has to claim PF, Pension and EDLI through joint claim form. In this process, documents like death certificate, succession certificate are required. You will also have to provide a canceled check to the account in which the payment is to be made.