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Employees Deposit Linked Insurance benefits hiked to7 lakh

Employees Provident Fund Organisation (EPFO) on Wednesday increased the maximum assurance benefit under the Employees Deposit Linked Insurance (EDLI) scheme to Rs.7 lakh from the existing cover of Rs.6 lakh. "Central Board of Trustees, Employees Provident Fund (EPF) accorded approval for amendment of paragraph 22(3) of Employees Deposit Linked Insurance Scheme, 1976 to enhance the maximum assurance benefit to?7 lakhs from the present maximum assurance benefit of?6 lakhs," the ministry of labour and employment in a statement.

The EDLI scheme is a mandatoryinsurancecover provided to to all subscribers of EPF scheme. A nominee gets a lump sum payment of up to Rs.7 lakh in the event of death due to natural causes, illness or accident. All organisations covered underEPFand Miscellaneous Provisions Act, 1952 get enrolled for EDLI automatically.

The insurance cover depends on the salary drawn in the last 12 months of the employment before death. The employer and central government contribute to EDLI scheme. The employee does not need to contribute to deposit linked insurance scheme. The claim amount under this scheme is 30 times the average monthly salary in the past 12 months subject to a maximum of 7 lakh.

Earlier this year, the CBT said that the benefit of EDLI will be provided to family members of a deceased employee, who dies while in service, even if he worked in more than one firm in the 12 months preceding his death.

"CBT was also informed that the actuarial valuation of EDLI Fund has allowed for continuation of minimum assurance benefit of Rs.2.5 Lakhs beyond 14.02.2020 and extension of minimum assurance benefit of Rs.2.5 Lakhs to family of those deceased members who were employed in multiple establishments during the 12 months preceding the month in which they died, as approved by CBT EPF in its 226th meeting," the ministry of labour and employment said in a statement.