EPF life insurance how to claim eligibility, premium, benefits

EPF life insurance || EPF gives life insurance of Rs 700000 to every member

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Which is known as Employee Deposit Linked Insurance (EDLI).

Today we will learn about eligibility, premium, benefits and how to claim.

EPF life insurance how to claim eligibility, premium, benefits EPF gives life insurance of Rs 7,00000 to every member

I am a third generation labor law consultant and on this website we create content for the links, documents etc. referred in this post. And gives information about insurance, loan, etc.

eligibility

The full form of EDLI is Employee Deposit Linked Insurance Scheme.

This means that this insurance is linked to your PF deposit. It is one of the 3 schemes of EPFO ​​rest two I think you must know Employees Provident Fund Scheme (EPF) and Employees Pension Scheme (EPS) this scheme 1976 was started in Major changes have been made. in 2016, 2018, and 2022. Which notification came on 28 April 2021?

It is a group insurance plan. That is, whatever amount the PF member has, it is in crores. By making their group, ensured in this plan. This means that all PF members get its coverage. first thing,

Who pays the premium?

Don’t worry, if you are an employee, you have to pay zero premium. Because this full premium is paid by your employer. If you are a PF member, your employer will pay the EDLI premium monthly on your behalf.

How much is the premium?

The premium is 0.5% of PF salary. PF Salary is calculated from Basic and DA. Suppose your salary is Rs. 10,000/- then the premium for that month will be 0.5% of 10,000 (Rs 50) which will be paid by your employer. This is not calculated for an individual employee. EDLI is calculated on the sum of PF salary of all the employees

The limit for EDLI calculation is up to Rs 15,000. Suppose, you are contributing PF for Rs 50,000 but the EDLI contribution will be Rs 75 per employee maximum Rs 15,000 if you are looking at this post EDLI company as an employer or HR How does it work from the perspective of Apart from this, we have taught many concepts in A-Z of PF Compliance course. App and website link is given in details for you as I told you that if you are PF member then you are eligible for EDLI.

benefits

As long as you are working in the company you are covered in this scheme to give better benefits from EDLI Some limited companies have their own group insurance They may be exempted from EDLI but such companies are very few. Another misconception of many consultants and HRs is that there is a minimum limit of 12 months for availing the benefits of EDLI.

This means that you must have 12 months of continuous service, there is no such condition. But if your service is less than 12 months then your profit will decrease drastically and you will get very less benefit Major benefits can be available only after 12 months but before 12 months you can get some benefits.

We will learn that its coverage is complete. Not so, it will be claimed only if the PF member dies due to work-related accident, work-related death, work-related death, non-work related, illness, accidental, etc. Whatever the cause of death, the family can claim the benefit. Before calculating the EDLI, you should know a few points

EPF life insurance how to claim eligibility, premium, benefits EPF gives life insurance of Rs 7,00000 to every member

First, is the service more than or less than 12 months? And what is the date of death? Before 15 February 2021 or after? If the calculation will be different in both the cases then

First, let’s understand whether it is more than 12 months. So, this calculation is governed by EDLI Scheme Section 22 Paragraph 3. Before 15th February 2020, the calculation will be like this

EDLI amount = 30X of average monthly salary (average of last 12 months) + 50% of average PF balance in last 12 months. subject to maximum 1.5 lakh

Similarly, in salary also you have to provide subject that if the contribution is Rs. 50,000 per month then it will also be limited to Rs. 15,000/-

EPF gives life insurance of Rs 7,00000 lakh to every member

What will be the maximum limit?

If your average salary is Rs. 15,000/- 30X of 15,000 = 4.5 lakh + 50% of average PF balance subject to a maximum of Rs.1,50,000. So, the maximum attainable EDLI benefit before February 2020 is Rs. 6 lakhs Suppose the average salary of the employee is Rs. 10,000 and his average PF balance is Rs. 1 lakh then 10,000*30 = Rs 3 lakh + 50% of Rs. 1 lakh which is Rs. 50,000 So, in this case, the EDLI benefit would be Rs. 3.5 Lakh Your service must have 12 months service in one company before February 2021 if you have worked 5 months for one company and 7 months for another company. Even if you worked continuously. You were not eligible for EDLI benefits. There have been many improvements after February 2021. The limit of 6 lakhs has also increased to 7 lakhs and there are many changes in the calculation too, so, after February 15th, the formula: 35 * Average monthly PF wages is again limited to Rs 15,000. Also 50% of average PF balance Here, the maximum limit has increased from 1.5 lakhs to 1.75 lakhs, assuming 35 times the maximum account, all Rs. 15,000 is contributed, plus 50% average balance limit of Rs. 1,75,000 So, Rs 5.25 lakh + 1.75 lakh = 7 lakh

Again repeating the same example if salary is Rs 10,000 and average balance is Rs 1 lakh then, 10,000 * 35 = 3.5 lakh + 50% of average balance (1 lakh) = 50,000 So, EDLI profit will be 4 lakh which was earlier 3.5 lakh Also, there is a change in this amendment that if your 12 months of service is in multiple establishments instead of 1 establishment then you can also take the benefit. Now, let’s discuss the situation when the services in less than 12 months are like this. In this case, the benefits will be very less, but you will get some benefits which are covered under EDLI Section 22, Paragraph 1 and 4, then in this particular case, the formula will be the average PF balance up to a maximum of Rs 50,000 plus an amount exceeding Rs 50,000 40% (subject to maximum limit of 1 lakh). It seems too complicated to multiply the whole amount by 1.2 because you will get an additional 20% as per paragraph number 4,

Let us understand with an example first assume that if the service is less than 12 years then your average balance will be more than Rs. 50,000 in very few cases because generally if you are contributing on Rs. 15,000 so you are contributing Rs. Rs 1800 per month So, Rs 1800 per month is contributed by the employee as well as Rs 367 is being contributed to PF from employer’s share, so employee can deposit maximum Rs 23,837 in 8 months. Find the average by dividing the remainder by 11. Then the average would be very low. Suppose the average PF balance is Rs 15K then 1.2 times of 15,000 = 18,000 and this is your profit, Well, in this particular case, theoretically, the total profit can be up to 1.8 lakhs. But this is a theoretical limit. Suppose Rs 50,000 from the first condition and 1 lakh from the second condition and then multiplied by 1.2 then it is Rs 1.8 lakh but this is possible only if the employee contributes PF on huge salary. Only then we can get such high balance otherwise we cannot get such huge balance in continuous service of less than 12 months. Another condition could be that the employee did the job and he joined another company after the gap but in the gap period, he had a good PF balance in his account which he did not withdraw. Then the employee can get maximum benefit of 1.8 lakhs on continuous service for 12 months

Who will get this amount?

If the PF member has filed nomination, then the nominee will get the benefit and no questions will be asked so it is important to file the nomination online if not done yet then you can watch the tutorial video from the i button I saw many cases in which the employee did not file his nominee and unfortunately if any member dies then the family has to face many problems. especially if the member was unmarried. To face and also to obtain a court certificate. If the legal heir is a minor, the money will be transferred to his guardian

How to claim it?

We can claim in both online and offline mode You can claim online only when the enrollment form is filled. If the enrollment form has been filled, visit the UN Member Portal. UAN Number and Enrolled Aadhar Details After Aadhar OTP Verification you will be logged in. List of all required documents can be found on the right side like death certificate, canceled cheque, etc. Keep PDF file of all these documents ready as you fill the form. At the time all these must be uploaded First and very important point for all employers and HR “Death in service” and “Death in service” enter in the reason

If the death is due to work-related accident then enter “Death in Service” Otherwise, enter “Death from Service” If the cause is not death then no online benefit can be claimed and you will get multiple problems will be faced. Form. Select the relevant options and click on submit. In the e-sign option, you can authenticate it through Aadhaar. You can view the progress report. Generally, it takes 30 days if the enrollment form is not filled and you are applying offline then you have to download the Samagra Death Claim Form (Link in Details) List of all required self-attested documents can be found at the bottom of the form And all the documents should be with your employer’s seal and signature then submit it to the local pf office if that company is closed in any case you can take the signature of gazetted officer or bank manager along with the application and submit it can do. As I told you that if there is no error in the form, whether it is online or offline then PF office has to settle your claim within 30 days otherwise, they will have to pay you 12% interest on that amount. There are 3 ways if No response is received after you fill the correct form

The first step is to register a complaint by visiting the PF Grievance Portal

Secondly, you can file an RTI to know the status of your application

Third, you can complain in this matter on PM Grievance Portal

Hopefully, you will get the response in the first step. So, you will rarely use step 2 or 3. There are some important points for employees and for employers and HR. Also as an employee, file your enrollment form

Secondly, tell your family members about the benefits of EDLI You can share this post with them for their awareness Third, Write your UAN number in any secure place and send it to at least 1 or 2 family members Tell it about it’s like if you have life insurance and your family is unaware of it

Then how will they claim the benefit?

So tell your family members that life insurance is linked with UAN, a very important point for employers. If an employee in your company dies while working then don’t put termination as the reason for his/her exit only. Enter “death in service” or “death away from service”. and he is hospitalized let’s say he dies in hospital due to some reason HR or employer usually mistake here suppose employer is not coming to office from last 15 days then they call it 15 days back date show ‘left’ from

No EDLI benefit will be available in this case. Therefore, the better recommendation is that if the employee is employed in your company but is unable to come to the office, treat it as absent and fill your PF challan as ‘Nil’ for that time.

EPF life insurance how to claim eligibility, premium, benefits EPF gives life insurance of Rs 7,00000 to every member

If you give the reason for his exit as “Death in service” or “Death away from service”, then the employee will definitely get the benefit, however, the PF department may demand a lot of documents in this case like Payroll, Pay-slip, Pay Register etc. So, prove that the employee was not able to attend work since last few days but he was employed and he was absent and died due to some reasons. In this case the benefit can be claimed. Lastly, I would like to request all HR and employers to check A-Z of our PF Compliance Syllabus as you will get very in-depth knowledge about PF in this course, there is a huge discount going on this course at the moment. has been You can find all the information in other posts on the website