Labour Ministry hiked the maximum sum assured payable under the Employees’ Deposit Linked Insurance Scheme, 1976 to Rs. 7 lakh vide its notification no. G.S.R. 299. The hike in the maximum sum assured payable would be implemented prospectively from the date of notification and the provision of minimum sum assured of Rs 2.5 lakh would be applicable retrospectively from February 15, 2020. The Salient features of the scheme is given below
- This Scheme may be called the Employees’ Deposit-Linked Insurance (Amendment) Scheme, 2021.
- The Scheme is given effect retrospectively from the 15th day of February 2020.
- The assurance benefit shall not be less than two lakh and fifty thousand rupees
- Who was in the employment of the same establishment & was in employment is to be inserted.
- The claim amount under EDLI is 35 times the average monthly salary in the past 12 months subject to a maximum of 7 lakh (5.25 lakh basic + 1.75 lakh bonus).
- The average monthly wages are drawn (subject to a maximum of fifteen thousand rupees), during the twelve months preceding the month in which he died, multiplied by 35 times plus fifty percent. of the average balance in the account of the deceased in the Fund or of a provident fund exempted under section 17 of the Act or under paragraph 27 or 27 A of the Employees’ Provident Funds Scheme, 1952, as the case may be, during the preceding twelve months or during the period of his membership, subject to a ceiling of one lakh and Seventy-Five thousand rupees (Whichever is less has been omitted)
- For declaring false information or false submission of return Employer shall be punishable with imprisonment which may extend to one year or with fine the punishment is Rs Twenty-Five Thousand or with both
- The scheme shall be in force for a period of three years with effect from the date of publication of this Scheme in the Official Gazette.