EPFO to provide 3 year life insurance cover to subscribers after job loss
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New Delhi: Retirement fund body Employees’ Provident Fund Organisation (EPFO) next month is likely to consider and approve a proposal to provide life insurance cover to its subscribers for three years after cessation of employment.
“EPFO trustees, in the meeting expected next month, will take up and consider the proposal to provide insurance cover under its EDLI scheme to its subscribers for three years after losing job,” a source said. “The maximum sum assured under the Employees’ Deposit Linked Scheme (EDLI) will soon be enhanced to Rs 6 lakh this month,” the source said.
In September last, EFPO’s apex decision making body Central Board of Trustees’ (CBT) had decided to increase benefits under the EDLI scheme from Rs.3.6 lakh to Rs.6 lakh. However, the decision could not be implemented because the notification to amend the scheme was not issued as it was stuck in law ministry.
The source said, “The notification will be issued this month only to enhance the benefits under EDLI to Rs 6 lakh.” The proposal provides for voluntary retention of EDLI membership to subscribers at reduced rate of contribution for three years after losing job.
The employers are required to pay 0.5% of basic wages of workers as premium for the insurance scheme for their workers. Workers usually lose membership or benefit of the scheme after quitting job. EPFO manages a corpus of over Rs.8.5 trillion and its subscribers’ base is over five crore at present.