Employees Deposit Linked Insurance: EPFO provides life insurance cover to its registered employees. Many people are not aware of this, due to which they are not able to take advantage of it. Let us tell you, EPFO provides insurance cover to the employees along with gratuity and pension.
Since when is the cover available?
Insurance cover is being given to the employees in EPFO since 1976, but many people do not know it due to lack of information. Today we are going to tell you about this insurance cover given by EPFO and the rules related to it.
So understand what is the scheme
EPFO runs Employees’ Deposit Linked Insurance (EDLI) scheme for registered employees. This scheme works as a combination with EPF and EPS. In this scheme, if an employee dies during the job. So up to Rs 7 lakh is given by EPFO to his nominee as financial help. In this insurance scheme, after the death of the employee, financial assistance is given to his family.
Nominee gets money
The insurance claim received under the EDLI scheme depends on the salary of the employee for the last 12 months. If the employee works for 12 consecutive months, then only after his death, his nominee gets a minimum financial assistance of Rs 2.5 lakh. In this scheme, the employee will get cover only as long as he is in the job. If he dies after leaving the job, then his nominee or family cannot claim for insurance.
money is deducted from salary
Under this scheme, the employee’s family gets a cover up to a maximum of Rs 7 lakh. To join the scheme, the employee does not have to fill any separate application or form. In this scheme, 0.5 percent of the PF deducted from the salary of the employees is deposited. This scheme works as a combination of EPF and EPS. It is known that 8.33 percent of the amount of PF deducted every month from your salary is deposited in EPS, 3.67 percent EPF and 0.5 percent in EDLI scheme.
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