EPFO hikes death insurance under EDLI scheme to Rs. 7 lakh

Employees’ Provident Fund Organisation has recently raised the death insurance benefits for subscribers of its employees’ deposit-linked insurance (EDLI) scheme, at a time the COVID-19 pandemic is wreaking havoc across the country.

In a gazette notification, EPFO stated that the minimum death insurance has been increased to Rs. 2.5 lakh and the maximum to Rs. 7 lakh, from the earlier limits of Rs. 2 lakh and Rs. 6 lakh, respectively.

The notification said, “The following proviso shall be inserted and shall be deemed to have been inserted with effect from the 15th day of February 2020… provided that the assurance benefit shall not be less than two lakh and fifty thousand rupees.”

It means the lower limit of this insurance benefit will be effective retrospectively from February 15, 2020.

“Vide notification of the Government of India in the ministry of labour and employment… dated the 15th February, 2018 published in the Gazette of India, Extraordinary… the minimum assurance benefit ceiling was increased to two lakh and fifty thousand rupees for a period of two years, which expired on the 14th February, 2020,” the notification read.

“Therefore, for the purpose of giving continuity to the said benefit, sub-clause (iv) of clause (b) of paragraph 2 of this amendment Scheme is given effect to retrospectively from the 15th day of February, 2020, which will not adversely affect the interests of any person,” it further added.

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