The whole country is currently reeling under the second wave of Covid. A large number of people are also losing their lives due to this disease. The crisis on such families has suddenly increased. The PF account holder gets free insurance up to Rs 7 lakh. In such a situation, if an employee of a private company dies, then his family members can make a death claim of Rs 7 lakh. A family member or a nominee of an employee who lost his life due to Covid can also claim death under this insurance.
The CBT approved an amendment to paragraph 22 (3) of EDLI, 1976 in September 2020 to increase the maximum insurance amount from Rs 6 lakh to Rs 7 lakh. The purpose of this amendment is to provide relief to the families and dependents of those members associated with the scheme, who died unfortunately while in service. In a meeting of CBT held in March 2020, EPFO trustees recommended giving a minimum benefit of Rs 2.5 lakh to the family members of the deceased employee, who dies during service. If the death of an employee is due to Covid, he can also claim it.
Under the EDLI, this money is received by the PF account holder’s nominee. But if the account holder has not made anyone his nominee, then the employee’s wife and children can also claim the money.
According to the new update of EDLI, 35 times + bonus of the last 12 months, basic salary is given to the employee’s family or the nominee. Suppose someone’s salary is Rs 15,000, then 35 times o it becomes Rs 5,25,000 and on adding Rs 1,75,000 the total values becomes Rs 7 lakhs. Earlier, only 6 lakh rupees were received through this scheme. The best part of this scheme is that once the employee starts the PF contribution, he becomes eligible for it. There is no need to fill any additional form for this.