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Tuesday, 27 January 2015

How to get an exemption under EDLI (Employees Deposit Linked Insurance Scheme, 1976) under PF Act

Section 17 (2A) of the Act provides for grant of exemption from the operation of Employees Deposit Linked Insurance Scheme, 1976.  It is granted to an establishment, where the employees are, without making any separate contribution or payment of premium, in enjoyment of benefits in the nature of Life Insurance whether linked to their deposits in Provident Fund or not and such benefits are more favourable than the benefits admissible under the Insurance Scheme.  It is granted by the Central Provident Fund Commissioner by notification in the official gazette and is subject to conditions that may be specified in the notification.  It is  granted either prospectively or retrospectively.

Pending grant of exemption to an establishment relaxation order may be issued under Para – 28 (7) of the Employees Deposit Linked Insurance Scheme, 1976.

An establishment exempted from the operation of Employees’ Deposit Linked Insurance Scheme, 1976 is required to submit a monthly return to the Regional Provident Fund Commissioner by the 25th of the month in Form 7(IF).

Para 28 (4) of the Scheme provides for grant of exemption by the Central Provident Fund Commissioner to any Class of employees.

Under Section 17 (2B) read with Para – 28 (1) of the Employees’ Deposit Linked Insurance Scheme, 1976, the Regional Provident Fund Commissioner may grant exemption from the operation of all or any of the provisions of the Employees’ Deposit Linked Insurance Scheme to an employee.

STEPS TO INTRODUCE THE SCHEME:
  1. Apply to the Regional Provident Fund Commissioner under Sec.17 (2A) of the E.P.F. and M.P. Act 1952 to exempt you from EDLI Scheme. The application should be accompanied by the prescribed requirements including the Rules of the Proposed Group Insurance scheme. Central PF Commissioner, has authorized the R.P.F.C. to grant exemption from the 1st of the month in which the application for relaxation is submitted. LIC also offers necessary guidance to the employers for seeking relaxation.
  2. Put up notice for the knowledge of the employees that you are going in for LIC or Equivalent authorised Insurance Service Provider in lieu of EDLI.

The establishment shall pay inspection charges at the rate of 0.005 % of the basic wages and Dearness Allowance subject to a minimum of Rs.1/- per month.

For More information - Contact manmeet@karmamgmt.com or lancy@karmamgmt.com 

1 comment:

  1. Life insurance is very important and it is the best way to save money. If you are busy person and have no any time to go insurance company and you can easily get insurance in the internet.
    Employee Benefits

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