Know for What Amount are You Eligible for in Free Insurance on EPF?

There are many advantages of a provident fund account with good interest, retirement corpus and when required, it works like a savings bank account. Free insurance cover is available on every EPF account from EPFO. Employees get life insurance cover up to Rs 7 lakh with EPF account under Employees Deposit Linked Insurance Scheme. The Covid-19 epidemic is also covered in it (EPF Covid Claim). If an employee dies of Covid-19 while on the job, then the nominee can claim up to Rs 7 lakh under the EDLI scheme.

Insurance is linked with EPF account

Life insurance cover is linked with your PF account. During the period of service, no employee gives any kind of contribution for this. Employees Provident Fund Organization (EPFO) provides this facility free of cost to all its members. In case of accidental death of any EPFO ​​member, then the nominee can claim the life insurance amount.

The amount increased in the year 2020

EPFO members get the facility of insurance cover under the Employee Deposit Linked Insurance Scheme (EDLI Insurance cover). In the scheme, a maximum of Rs 7 lakh can be paid to the nominee under the insurance cover (EPF Covid Claim). Earlier its limit was Rs 3,60,000. Later the cover limit was increased to Rs 6 lakh and in September 2020 last year, its limit was increased to Rs 7 lakh. The limit of bonus was also increased from Rs 1.5 lakh to Rs 2.5 lakh.

How is the EPF Covid claim amount decided?

On the death of an employee, the nominee gets 30 times the average salary of the last 12 months, along with a bonus of 20%. This means that according to the ceiling of basic income of Rs 15,000 at present, 30x ₹ 15,000 = ₹ 4,50,000 will be available. Apart from this, a bonus amount of ₹ 2,50,000 will also be given to the claimant. Overall, this amount can be up to a maximum of Rs 7 lakh.

Covid Claim

According to EPFO ​​Retired Enforcement Officer Bhanu Pratap Sharma, on the death of the PF account holder, the nominee of the account can claim the insurance amount. For this, deceased’s family will need to provide the death certificate, succession certificate and bank details to the insurance company. It can also be taken in case of death due to Covid-19 (EPF Covid Claim). If someone does not have a nominee, then the legal heir can claim this amount. To withdraw money from the PF account, submit Form-5 IF of insurance cover along with the form to be submitted with the employer. The employer verifies this form. After this the cover money is received.

No claim after retirement

According to EPFO’s Enforcement Officer Gopichand Arora, this insurance on PF account can be claimed only if the death of the PF account holder happened while in service, that is, before retirement. During this, whether he is working in the office or on leave. It does not matter. Nominee can claim money.