EPFO: The Employees Provident Fund Organization (EPFO) has introduced three significant modifications to its Employees Deposit Linked Insurance (EDLI) scheme, which were approved during the recent Central Board of Trustees (CBT) meeting. These adjustments aim to enhance insurance coverage and provide greater financial security for the families of EDLI beneficiaries. Additionally, the changes are designed to streamline the process for families of EPF members when filing death claims.
The Employees Deposit Linked Insurance is a life insurance program offered by the EPFO, covering employees enrolled in the EPF scheme. Initiated by the Government of India in 1976, the scheme provides an insurance benefit of up to Rs 7 lakh to the family of an EPF member in the event of their death while employed.
Guaranteed minimum insurance benefit of Rs 50,000
One of the most significant updates to the EDLI scheme is the introduction of a guaranteed minimum insurance benefit of Rs 50,000 for families of EPF members who pass away within the first year of employment. Previously, there was no fixed amount for such cases.
Family will receive insurance
Under the former regulations, families of EPF members who died after the non-contributory period were ineligible for EDLI benefits. However, the new guidelines ensure that if an EPF member dies within six months of their last contribution and their name is recorded in the company’s records, their family will receive insurance benefits under the EDLI scheme.
Gape between jobs
Furthermore, the new rules address the issue of employment gaps. Previously, any break of one or two days between jobs disqualified an EPF member from being considered in continuous service, which meant their family could not access the minimum benefit of Rs 2.5 lakh or the maximum benefit of Rs 7 lakh. The revised regulations now allow for a gap of up to two months between jobs to be recognized as continuous service, thereby preserving eligibility for the EDLI scheme.