PF Account Holders To Get Free Life Insurance Coverage Of As Much As Rs 6 Lakh; Check Details Here

New Delhi: Do you have PF account? If you have you may get a free life insurance coverage of as much as Rs 6 lakh. The Employees’ Provident Fund Organisation (EPFO) is reportedly providing the life insurance to all the eligible Provident Fund account holders.

Once the EPFO subscriber opens the PF or EPF account he may get the life insurance coverage under the Employee Deposit Linked Insurance (EDLI) scheme, 1976. The EPFO subscriber has the right to get 20 times double of his basic salary or Rs 6 lakh, whichever is lower.

According to tax experts, in the case of prolonged sickness, sudden death or normal death, the EPFO subscriber’s nominee can claim for the insurance.

Who Is Eligible To Get The Life Insurance Coverage

All the EPFO subscribers are eligible to get the life insurance coverage provided that they do not have any group insurance. Employees engaged in different companies/factories get the most benefit of the insurance because their employers generally do not give them any insurance coverage. Only the employees who are engaged in good and established companies/factories get the insurance coverage from their employers. However, they have to pay some premium.

Process To Claim EDLI

• Nominees can claim for the EDLI Amount
• In case of no nomination, his family members can claim for the EDLI amount
• However the eldest son, married daughters having husband alive, and major son, married daughters having husband alive of the deceased son of the deceased member cannot claim the amount.
• In case of no family, and no nomination, legal heir can claim for the EDLI Amount
• In case of the a minor nominee/family member/legal heir his guardian can claim for the Amount

Claim Form Instructions

• The claim under EDLI is admissible only if the deceased person was in active service during the death.
• The EDLI claim form should be submitted along with Form 20 and form 10D/10C (for claiming the Provident Fund dues and Pension/Withdrawal Benefit as applicable). It facilitates to process the benefits of the scheme in one go.
• All details should be written in BLOCK LETTERS and there should not be any overwriting.
• In case the deceased member was a married female, her Husband’s name should be mentioned in the column 1 (b) of the form.
• Details of Bank Account for receiving payment: Correct name, branch and address of the Bank where the claimant is maintaining account should be furnished as payment is sent directly to the Bank.
• For ensuring correctness of bank details, a copy of the blank/cancelled cheque should be attached with the claim form.
• The form has to be filled up separately by each claimant.
• In case the claimant is minor it should be filled up by the guardian on his / her behalf.

Documents To Be Enclosed

• Death Certificate of the member
• Guardianship certificate if the claim on behalf of a minor family member/nominee/legal heir is by other than the natural guardian.
• Succession certificate in case of claim by the legal heir.
• Copy of a cancelled/blank cheque of the bank account in which payment is opted.
• In case the members were last employed under an establishment exempted under the EPF Scheme 1952, the employer of such establishment should furnish the PF details of last 12 months under the Certificate part and also send an attested copy of the Member’s Nomination Form.

With inputs from www.planmoneytax.com