The Employees Provident Fund Organization (EPFO) has made a big announcement for its shareholders. Now PF account holders will get insurance of up to ₹ 7 lakh free. In addition, under the new rules, the service of up to two months will be considered continuously for changing the job and there will be insurance benefits even if they die within six months. Let’s know in detail about the new changes of the EDLI scheme.
The Employees Provident Fund Organization (EPFO) has made a big announcement for its shareholders. Now PF account holders will get insurance of up to ₹ 7 lakh free. In addition, under the new rules, the service of up to two months will be considered continuously for changing the job and there will be insurance benefits even if they die within six months. Let’s know in detail about the new changes of the EDLI scheme.
EPFO’s new initiative
EPFO has made significant changes under the EDLI scheme. Under this scheme, the minimum insurance benefit has now been reduced to 50 thousand and maximum of 7 lakh rupees. Earlier in this scheme, no insurance benefits were received on death in less than one year of service, but now the family of each employee will get a minimum of 50 thousand insurance.
You will get benefit even on changing jobs
After changing the first job, the interval between two jobs affected the service continuity, which made the employees difficult to get insurance benefits. But now EPFO has recognized the interval of up to two months as a service continuity. This will provide relief to those employees who change their jobs and take some time to start the EPF contribution to the new company.
Insurance protection in non-contributory period
EPFO has also clarified that even if the employee dies within six months of the final contribution, his family will get insurance benefits. The claim could be rejected earlier in this situation, but now this amendment would provide a significant relief for employees and their families.
How to get insurance benefits?
If an employee dies during service, his family will have to apply to the EPFO office to get insurance benefits. Online claim facility has also been provided to simplify the claim process. The family will have to submit the application with the necessary documents, after which the investigation will be done by the EPFO and the insurance amount will be released after the approval.
Who will get the benefit?
This scheme is applicable to all EPF shareholders. If an employee dies during service, an insurance amount will be provided to the nominated person or legal heir. The main objective of this scheme is to provide economic security to the families of the employees.
What will be the effects of these changes?
These changes of EPFO will benefit millions of employees and their families will get more financial security. Especially in cases where the family had difficulty in getting insurance benefits due to interval in job changing or contribution, now they will not have to face this problem.
This initiative of the government is a big step in the interest of employees. This will provide financial assistance to their families in the event of any untoward in future. These changes made by EPFO will prove to be important for safety of employees and improving their future.