The Employees’ Provident Fund Organization (EPFO) has reassured its subscribers that the insurance benefits provided under the Employees’ Deposit Linked Insurance (EDLI) scheme will continue without any changes. The EDLI scheme is designed to offer life insurance coverage to employees, ensuring financial support to their families in the event of the employee’s death.
Key Features of the EDLI Scheme
- Maximum Insurance Benefit:
Under the EDLI scheme, EPFO subscribers are entitled to a maximum insurance benefit of up to ₹7 lakh. This amount is provided to the family members of the deceased employee as financial security. - Eligibility:
All employees covered under the Employees’ Provident Fund (EPF) scheme automatically become part of the EDLI scheme, ensuring comprehensive coverage for a vast number of workers in India. - Financial Protection for Families:
The scheme plays a crucial role in providing financial protection to the families of EPF members during difficult times, particularly after the death of a family member.
Commitment to Social Security
The continuation of insurance benefits under the EDLI scheme highlights EPFO’s commitment to enhancing social security for its members. This assurance is particularly important during times of uncertainty, offering peace of mind to employees and their families.
Employer Contribution and Automatic Enrollment
Employers are required to contribute towards the EDLI scheme, making it an integral part of the employee’s Provident Fund membership. This automatic enrollment ensures that employees are covered without needing to take any additional steps.
Role of EDLI in India’s Social Security Framework
The EDLI scheme remains a key pillar in India’s social security system, offering financial assistance to families in times of distress. Its continuation underscores the EPFO’s dedication to supporting its members through insurance benefits that help secure their families’ futures.
Multiple-Choice Questions (MCQs):
- What is the maximum insurance benefit offered under the EDLI scheme?
a) ₹5 lakh
b) ₹7 lakh
c) ₹10 lakh
d) ₹3 lakh
Answer: b) ₹7 lakh - Which organization administers the EDLI scheme?
a) Insurance Regulatory and Development Authority (IRDA)
b) Life Insurance Corporation (LIC)
c) Employees’ Provident Fund Organization (EPFO)
d) Reserve Bank of India (RBI)
Answer: c) Employees’ Provident Fund Organization (EPFO) - Who is eligible for the EDLI scheme?
a) Only government employees
b) All employees covered under the EPF scheme
c) Private-sector employees only
d) Employees above 60 years of age
Answer: b) All employees covered under the EPF scheme - What role do employers play in the EDLI scheme?
a) They provide direct financial support to families
b) They contribute towards the insurance scheme
c) They are not involved in the EDLI scheme
d) They manage the insurance claims
Answer: b) They contribute towards the insurance scheme - What is the primary purpose of the EDLI scheme?
a) To provide medical insurance for employees
b) To offer life insurance coverage and financial protection for the families of deceased employees
c) To give retirement benefits to employees
d) To provide loans to employees
Answer: b) To offer life insurance coverage and financial protection for the families of deceased employees