Amid a second wave of covid, EPFO increases death insurance benefits
Premium- The social security body said that while the minimum insurance has been increased to Rs250,000, the maximum limit has been increased to Rs700,000
NEW DELHI : Amid the second wave of the covid-1pandemic, labour ministry run employees’ provident fund organization (EPFO) has increased the death insurance benefit for its insurance subscribers.
In a gazette notification, the social security body that serves at least 50 million active subscribers, says while the minimum insurance has been increased to Rs250,000 and the maximum limit has been increased to Rs700,000.
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1 min read . 11:16 AM ISTThe lower limit earlier was Rs200,000 and upper limit was Rs600,000.
The provision is applicable to the subscribers of the employees’ deposit linked insurance scheme under the EPFO. In case of the death of these subscribers while working, the death benefit is given to the family of the deceased subscriber. Though Employees Deposit Linked Insurance Scheme (EDLI) beneficiaries are not as high as the EPF subscribers, the number is over two million. The difference between both schemes is that all EDLI subscribers are EPF subscribers but not all EPF subscribers are EDLI beneficiaries.
“The following proviso shall be inserted and shall be deemed to have been inserted with effect from the 15 February 2020...provided that the assurance benefit shall not be less than two lakh and fifty thousand rupees," a gazette notification said.
It means the lower limit of this insurance benefit will be effective retrospectively from 15 Feb 2020.
“In the second proviso, for the words, 'six lakh rupees', the words, 'seven lakh rupees', shall be substituted," the gazette notification said.
“While the lower limit is coming with retrospective effect, the upper limit has a perspective effect," labour secretary Apurva Chandra told Mint.
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1 min read . 02:13 PM ISTAccording to the gazette notification, the Union labour ministry had increased the lower death insurance to Rs250,000 from Rs200,000 in 2018 but only for two years. And it had expired on 14 Feb 2020. And the fresh amendment and notification will allow the continuation of the previous decision which has now also got the approval of the EPFO board.
The upper limit, however, is going to benefit many as it is being done for the first time.
“Vide notification of the government of India in the ministry of labour and employment…dated 15 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 14 February 2020. 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 15 February 2020, which will not adversely affect the interests of any person," said the new gazette notification.
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