Amidst the corona epidemic, the Labor Ministry has made a big decision for EPFO subscribers. The government has decided to increase the death insurance benefit. About 50 million or 5 crore subscribers are covered under EPFO. Now the amount of minimum insurance has been increased to Rs 2.5 lakh and maximum Rs 7 lakh on death. Earlier minimum insurance was 2 lakh rupees and maximum insurance was 6 lakh rupees.
This order of the Labor Ministry pertains to Employee Deposit Linked Insurance (EDLI). If a subscriber dies, his family gets the benefit of this insurance. By the way, the number of beneficiaries of EDLI (Employees Deposit Linked Insurance Scheme) is not so much EPF subscribers. There are about 2 million subscribers under EDLI. For your information, let us know that every EDLI subscriber is an EPF subscriber, but not every EPF subscriber is an EDLI subscriber.
Lower limit benefits from 15 February 2020 only
According to the labor ministry’s gadget notification, its benefits will be available from February 15, 2020. According to the notification, the benefit of lower limit i.e. 2.5 lakh death insurance will be available from February 15, 2020 while the death limit of upper limit i.e. 7 lakh will get benefit from now.
What is EDLI scheme
If an employee dies, then his family members can get the maximum sum insured as insurance. EDLI or Employee’s Deposit Linked Insurance Scheme provides a lump sum payment to the nominated beneficiary of the insured in the event of death due to natural causes, illness or accident. Earlier its maximum limit was 6 lakhs, now it has been increased to 7 lakhs.
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