Firms can now ensure higher group insurance of Rs 1.32 lakh for each employee by opting for the Edelweiss Tokio Life-Group Life Protection in lieu of EDLI scheme provided by Employee’s Provident Fund Organization (EPFO).
The EPFO has engaged the Edelweiss Tokio Life Insurance to provide this group term insurance plan in lieu of Employee’s Deposit linked Insurance (EDLI) scheme 1976.
Under the existing scheme, an EPFO subscriber gets insurance cover of up to Rs one lakh before superannuation.
According to EPFO, all those employers who would opt for ‘Edelweiss Tokio Life-Group Life Protection’ would be given exemption from EDLI scheme 1976. Employers contribute 0.5% of basic pay of an employee as insurance premium to the EDLI scheme every month.
The benefit under the scheme is given on the basis of the provident fund balance in the subscriber’s account. The subscriber gets the benefit equivalent to the PF account balance if the balance is up to Rs 50,000. But if the balance exceeds Rs 50,000, the benefit is the account balance plus 40% of balance, subject to maximum of Rs one lakh.
The maximum benefit under the scheme was enhanced from Rs 60,000 to Rs one lakh about three years ago in 2010.
EPFO found that the benefits under the Edelweiss Tokio Life-Group Life Protection Plan are better than those under the EDLI scheme 1976.
