Good news! EPFO finally gets govt nod to raise insurance cover of subscribers to Rs 6 lakh

Government has finally enforced the decision of retirement fund body EPFO to almost double the maximum sum assured under its insurance scheme to Rs 6 lakh for its 4 crore subscribers.

In September, Employee Provident Fund Organisation’s apex decision making body Central Board of Trustees (CBT) had decided to increase benefits under the Employees’ Deposit Linked Insurance (EDLI) scheme from Rs 3.6 lakh to Rs 6 lakh.

However, the notification to amend the scheme could not be issued by Labour Ministry as it was stuck in the Law Ministry.

“The notification to enhance EDLI amount has been issued. It (the maximum sum assured) has been enhanced from Rs 3.6 lakh to Rs 6 lakh,” Labour Minister Bandaru Dattatreya told reporters after launching a modernisation plan for National Academy for Training & Research in Social Security (NATRSS).

Besides, he said, the decision to provide 8.8 percent rate of interest to over 4 crore EPFO subscribers for 2015-16 has also been notified.

Some officials present on the occasion said however that they have not received the notification and are still settling the PF claims at 8.75 percent for 2015-16.

Source: Zeenews.india.com