Employees’ Provident Fund Organization (EPFO) provides life insurance facility up to Rs.7 lakh to its members. If you are a PF account holder and you have worked for 12 consecutive months, then your family members can take advantage of this sum insured in case of your premature death. This insurance cover will also be available to those employees who have worked with more than one employer within a year. This claim can be made on behalf of the relative of the employee on the premature death of the employee. The member claiming under this scheme should be the nominee of the employee. The benefit of this insurance cover can be taken even if there is death due to corona.
Premium
EFFO operates three schemes. EPF Scheme (EPF), Pension Scheme (EPS) and Insurance Scheme (EDLI). The employee is not required to make a separate contribution for the insurance scheme, rather the contribution is made by the employer itself. 12% of basic salary and DA of employees working in any organized group goes to EPF (Employee Provident Fund). Also, the contribution of 12 percent is made by the company or the employer.
Calculation of claim
The formula for calculation of claim in EDLI scheme is (35 times the average of the basic salary for the last 12 months received by the employee) + (50% of the average PF balance during the last 12 months, not exceeding Rs 1,75,000). Whereas, if the employee has worked for 12 consecutive months, then the minimum profit will not be less than 2,50,000.
Will claim like this
If there is an untimely death of the EPF member, then his nominee or heir can claim for the insurance cover. If the claimant is below 18 years of age, then his guardian can make the claim on his behalf. For this, the insurance company will have to provide the death certificate of the employee, succession certificate, certificates of the guardian applying on behalf of the minor nominee and bank account details.
