EPF- 1 Lac Rs. Insurance Coverage under EDLI Scheme

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now this News about Employee Pension Fund (EPF) holders. Indian Govt. accepted Labour minsitry advice to increase sum assurance from 60,000 to 100,000 Rs. under ELDI Scheme.
What is EDLI scheme?

If your company is covered by the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 and is contributing to the Employees' Deposit-Linked Insurance Scheme (EDLI), 1976; EDLI provides coverage in the event of death to all eligible employees of your company.

Under Sec. 17(2A) of the above-mentioned act, you may be exempted from contributing to this scheme, if you have provided for more favourable death benefits to your employees through an alternative plan.

The benefits of this policy are:

Benefit Basis: A contribution @ 0.51% of each employee's monthly salary (limited to Rs. 6,500 for the purpose of EDLI scheme) is payable by the employer to the Provident Fund Authorities.

Under the provisions of the EDLI Scheme, as amended with effect from 1st April, 1993

– The insurance benefit is equal to the average balance to the credit of the deceased employee in his/her Provident Fund Account during 12 months prior to death, provided that where such balance exceeds Rs. 35,000, the insurance cover would be equal to Rs. 35,000 plus 25% of the amount in excess of Rs. 35,000, subject to a minimum of Rs. 5,000 and a maximum of Rs. 60,000.

However, the Tata AIG Life's Group Term Life in lieu of EDLI policy offers a minimum Sum Assured of Rs. 62,000 per insured member irrespective of their Provident Fund Balance. The employer also has the choice to choose a higher Sum Assured for the employees.

Death Benefit: The Policy provides for a lump sum payment to the insured's nominated beneficiary in the event of death due to natural causes, illness or accident. Cover applies worldwide 24-hours a day.

Exclusions: There are no exclusions under this policy.

Eligibility: All employees who are covered under the organisation's Provident Fund and are actively contributing to that Fund in the age group of 18 to 85 years are eligible.

Tax BenefitsYou are eligible for Tax benefit as per the current tax laws.

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