Due to this the EDLI advantages are being paid resulting from such Non-Contributory Period of Service (NCP) days, in accordance with a round issued by EPFO dated October 18, 2022.
The EPFO has issued a clarification on the insurance claims underneath EDLI.
As per the EPFO round issued on October 18, “Due verification shall be done but it should be done within 7 days and the family members should not be harassed. In cases where employer states that the member is on the muster rolls and the E0 says otherwise, the reason why the employer version is not acceptable to us should be clearly listed out and examined at Office.”
“It is also to be noted that when the member dies after leaving employment he/she ceases to be an “employee” as defined in Section 2(f) read in conjunction with Section 6C (1) of the Act in an establishment covered under the Act the condition for release of EDLI benefits ceases to be in operation and the benefits would not be admissible,” EPFO added.
According to the EDLI scheme,
“Para 2.2.1 The assurance profit is payable on demise of the member, whereas in service”.
“Para 2.2.7 In circumstances, the place an worker member was on depart with out wages (consequently no contribution was payable by the employer) or absent for some other motive and expired throughout the interval, the Assurance profit is admissible regardless of the truth that no contribution was paid by the employer, offered he was on the muster rolls of the institution on the day of demise and glad the prescribed circumstances”.
‘Further Para 22(3) of EDLI Scheme states” On the demise of an worker, who’s a member of the Fund or of provident fund exempted underneath Section 17 of the Act, because the case could also be, who was in employment for a steady interval of twelve months, previous the month wherein he died, the individuals entitled to obtain the provident fund accumulations of the deceased shall along with such accumulations to be paid an quantity equal to:-
[(I) the average monthly wages drawn (subject to a maximum of fifteen thousand rupees), during the twelve months preceding the month in which he died, multiplied by thirty five times plus fifty percent of the average balance in the account of the deceased in the fund or of a provident fund exempted under Section 17 of the Act or under Paragraph 27 or 27A of the Employees’ Provident Funds Scheme, 1952, as the case may be, during the preceding twelve months or during the period of his membership, whichever is less subject to a ceiling of one lakh and seventy five thousand rupees;
provided that the assurance benefit shall not be less than two lakh and fifty thousand rupees, provided further that the assurance benefit shall not exceed seven lakh rupees;]
(ii) the quantity of profit underneath sub paragraph (1), whichever is greater”
It is to be noted that when the member dies after leaving employment he/she ceases to be an “worker” as outlined in Section 2(f) learn along with Section 6C (1) of the Act in an institution coated underneath the Act the situation for launch of EDLI advantages ceases to be in operation and the advantages wouldn’t be admissible.
What is EDLI
The EPFO (Employees’ Provident Fund Organisation) provides the EDLI scheme to non-public sector salaried workers. This system works in tandem with the EPF and the Employees’ Pension Scheme (EPS). The profit quantity is decided by the worker’s final drawn wage.
5 key options of the EDLI scheme
- A most assured good thing about Rs 7 lakh could be paid to the nominee or authorized successor of an EPF member who dies whereas in service.
- The minimal assure profit underneath the EDLI scheme 1976 is Rs 2.5 lakh if the useless member remained in steady employment for 12 months previous to his or her demise.
- This life insurance profit offered to EPFO members is offered without charge to PF/EPF account holders. • Employer contribution is proscribed to 0.5% of month-to-month salaries as much as Rs 15,000; worker contribution is non-existent.
- PF members are routinely enrolled within the EDLI scheme.
- Benefit is credited straight to the authorized inheritor’s or nominee’s checking account.
