PF EDLI scheme is responsible for insurance cover taken on behalf of an employee. It was established in 1976 since there was a problem arising from employees’ early demise which was often left undressed. Therefore, the scheme was formed and incorporated. In this scheme the following words have their own meaning such as:
- ACT means Employees Provident Funds and provision miscellaneous act,1952
- Assurance benefit refers to payment that is linked to average balance in provident account fund of a payable employee or to someone related him or her who is entitled to the funds in case of death.
- Others expression and words that are used but are not defined, shall use the meaning assigned to them respectively according to the act of the provident fund 1952 scheme. The scheme is solely implemented by central board formed under unit 5A of the act.
- This scheme was put in force on 1st august 1976.
The various benefits of the funds include
- According to the modernized version plan, the maximum amount of money that one stands to benefit from is Rs 1,300,000. The contribution under this system can go up to a limit wage of Rs 6500. The family is set to benefit in that they will acquire twenty times more of the average salary earned by a person annually. This benefit is only acquired in the event that the employee was a member when he died.
- Under this system the Employee Provident Fund scheme will also be applicable to EDLI scheme.
- It is significantly applicable to the companies and other establishments that the EPF and MP act 1952 applies. This means that the employees who become members of the fund are under EDLI insurance cover. The cover is global and always available. Moreover, under the policy there is no exclusion.
- A more comprehensive framework of administration was put up. This ensures smooth scheme functioning.
- The people in the 18-85 years are all eligible for the EDLI cover.
- In this scheme an insurance cover can vary and it’s based on the average balance of a member in his or her account. This is monitored over 12 months period.
- In the event of an unexpected death of a member, the beneficiary is entitled to the insured amount. He or she can easily claim the cover by attaching a death certificate copy accompanied by form 5.
- The employer is only allowed to contribute 0.5% of the employee’s basic pay a premium of the insurance.
The payment mode of contribution: the employer’s contribution will be dispatched by him or her. This will be together with the administrative charges. The rate of the charge may is to be adjusted at some points in time by the central government. This is according to section 6C; subsection 4 of the stated act. The cost of transmittal is any, will be incurred by the responsible employer. This system is of an advantage since it benefits you as a person and in case of any unexpected accidents, your family is left well protected and catered for.