NEW DELHI, APR 29
The Labour Ministry has implemented a decision of retirement fund body EPFO’s trustees to hike the maximum sum assured payable under the Employees’ Deposit Linked Insurance Scheme, 1976 to Rs 7 lakh from the existing Rs 6 lakh.
The Employees Provident Fund Organisation’s (EPFO) Central Board of Trustees (CBT), headed by Labour Minister Santosh Gangwar, had decided to hike the maximum sum assured under the EDLI scheme to Rs 7 lakh at its virtual meeting held on September 9, 2020.
The CBT had also decided to continue payment of minimum sum assured of Rs 2.5 lakh under the scheme beyond February 14, 2020.
Gangwar said that the Ministry of Labour and Employment issued a notification on Wednesday (April 28) to implement the decision to hike the maximum sum assured payable under the EDLI scheme to Rs 7 lakh.
Labour Secretary Apurva Chandra said that the hike in the maximum sum assured payable would be implemented prospectively from the date of notification.
He further said the provision of minimum sum assured of Rs 2.5 lakh would be applicable retrospectively from February 15, 2020.
The Ministry of Labour and Employment had on February 15, 2018 through a notification increased the minimum assurance benefit ceiling to Rs 2.5 lakh under the EDLI scheme for a period of two years, which expired on February 15, 2020.
Therefore, for the purpose of giving continuity to the said benefit, the amendment has been notified again to give effect to that retrospectively from February 15, 2020, which will not adversely affect the interests of any person.
In September 2020, the CBT had accorded approval for amendment of paragraph 22(3) of Employees’ Deposit Linked Insurance Scheme (EDLI), 1976 to enhance the maximum assurance benefit to Rs 7 lakh from Rs 6 lakh.
This amendment was aimed at providing additional succour to families and dependents of members of the scheme in case of their unfortunate death while in service.
The CBT was also informed in the meeting held in September last year that the actuarial valuation of EDLI Fund has allowed for continuation of minimum assurance benefit of Rs 2.5 lakh beyond February 14, 2020, and extension of minimum assurance benefit of Rs 2.5 lakh to the families of those deceased members who were employed in multiple establishments during the 12 months preceding the month in which they died (as approved by the board in its 226th meeting).
In the 226th meeting of the CBT held in March 2020, the EPFO trustees recommended to extend the provision of minimum assurance benefit of Rs 2.5 lakh payable to family members of deceased employees who die while in service.
Earlier, the benefit of minimum assurance of Rs. 2.5 lakh and maximum assurance amount of Rs 6 Lakh was not payable where the member worked in more than one establishment during a continuous period of 12 months preceding the month of death.
The board in its meeting in March 2020 had approved extending these benefits even if a member had worked in multiple establishments.
