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Statutory Compliance

EPFO hikes minimum PF-linked life insurance payout to Rs2.5 lakh

Source | Livemint.com : Prashant K. Nanda

Retiring EPF subscribers who have contributed to Employees Deposit Linked Insurance scheme for at least 20 years will get a loyalty benefit of as much as Rs50,000

Subscribers to the Employees Deposit Linked Insurance (EDLI) scheme, run by India’s retirement fund manager, will be eligible for a limited period minimum life insurance of as much as Rs2.5 lakh.

The validity of the insurance benefit will end on April 2019, when the next general elections are due.

While the sizeable minimum insurance will be given to the kin of an employee who dies during service, retiring members will get a loyalty benefit of as much as Rs50,000

Both minimum insurance and the loyalty bonus are being introduced for the first time by the Employees Provident Fund Organisation (EPFO) for EDLI subscribers.

“It will be notified soon,” said labour minister Bandaru Dattatreya.

Dattatreya said the scheme to provide minimum assurance and loyalty bonus will be reviewed after the completion of its two-year term.

 

When asked why the scheme will last only till the next general election and not for perpetuity, Dattatreya said since he “did not do this before Uttar Pradesh assembly elections” in February and March, a political motive should not be read into it.

The finance ministry, he said, will not object to the plan as EDLI has enough funds to provide for this new initiative.

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