EPF subscribers are eligible for upto Rs 7 lakh of ELDI insurance. Check how to apply

EPF subscribers are eligible for upto Rs 7 lakh of ELDI insurance Check how to apply

EPF subscribers are eligible for upto Rs 7 lakh of insurance. Check how to apply

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The Employee Provident Fund Organisation (EPFO) provides an insurance cover under the Employees Linked Deposit Insurance Scheme (ELDI) for private sector salaried employees. The insurance benefit is available for all private-sector subscribers of the EPFO.

What does ELDI insurance cover work?

ELDI is mainly death benefit insurance cover under which registered nominees of the person insured to receive a lump sum payment in the event of the death of the employee insured under the scheme during the service period.

The minimum lump sum payment under the ELDI insurance scheme is Rs 2 lakh and the maximum payout is Rs 7 lakh.

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How to calculate payout under ELDI scheme

The payout is calculated based on the salary of the subscriber. For example, if the average salary for the last 12 months of the employee is Rs 15,000 then it is multiplied by 30, i.e. 20,000×30, which comes to Rs 4.5 lakh— the amount paid to the nominee. Additionally, the nominee gets a bonus payout of Rs 2.5 lakh, which increases the final payout to Rs 7 lakh.

ELDI is applicable to all companies registered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. Organisations are required to subscribe to the scheme and offer benefits to employees. EDLI scheme works in combination with the EPF scheme and the Employees‘ Pension Scheme (EPS).

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How to make a claim under ELDI

Notably, only those making EPF contributions are eligible. It is also important that employees register a nominee with their employers to get the benefit of the scheme. However, family members and legal heirs are edible to apply even if the nominee is not registered by the employee.

The nominee or legal heir needs to submit EDLI Form 51F in order to make the claim. The form can be downloaded from epfindia.gov.in. The form needs to be signed and certified by the employer.

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In case there is no employer then the form can be attested by either the bank manager of the branch where the employee maintained his account, or local MP or MLA, gazetted officer, magistrate, member/chairman/secretary of the local municipal board or member of the regional committee of EPF or CBT.

The nominee can also submit Form 20 and Form 10C/D to claim all benefits under three schemes EPF, EPS and ELDI. All duly filled forms can then be submitted to the regional EPF commissioner who will take 30 days to settle the claim.

https://www.timesnownews.com/business-economy/personal-finance/epf-subscribers-are-eligible-for-upto-rs-7-lakh-of-eldi-insurance-check-how-to-apply-article-91558748

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