If PF is deducted from your salary every month, then this is a very important and beneficial information for you. Employees' Provident Fund Organization (EPFO) provides free life insurance up to Rs 7 lakh to all its shareholders.
To avail this insurance cover, employees do not have to pay a single rupee as additional premium from their pocket. This special facility is provided under EPFO's 'Employees' Deposit Linked Insurance' i.e. EDLI (Employees' Deposit Linked Insurance) scheme.
What is EDLI scheme and who gets the benefit?
According to the information, the main objective of this scheme, started in 1976, is to provide economic and financial security to the families of PF account holders. The entire cost of this insurance is borne by the employer i.e. your company. The company deposits 0.50% of the employee's basic salary + DA in this insurance fund. If an employee dies untimely while in service/job, his nominee gets a lump sum insurance claim of minimum Rs 2.50 lakh and maximum Rs 7 lakh.
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What are the necessary conditions to get a claim?
To avail the benefit of this insurance of Rs 7 lakh, the employee must have worked continuously for at least 12 months immediately before his death. Even if the employee has changed the company during this period of 12 months, if his PF account has been continuously active then the nominee is fully entitled to this claim.
How will the nominee get the insurance claim money?
After the unfortunate death of the employee, his nominee can fill Form 5 IF and submit it to the concerned office of the PF Commissioner. Along with this, it is mandatory to submit death certificate, bank account details and succession certificate.
EPFO advises all its members to complete the e-Nomination process immediately by visiting the UAN portal. By keeping the nominee's information completely updated on the portal, the family members get the claim amount very quickly and easily without any paper hassle.