Page 161 - Group Insurance and Retirement Benefit IC 83 E- Book

Advantage to the Employee:

Each employee is covered for a sum assured ranging between 5,000 to 2,00,000
depending upon the current salary and service put in from day one irrespective of the

actual balance in the Provident Fund. Alternatively every employee/ worker can be
covered for a uniform sum assured which will be decided depending upon the group size.

Accident Benefit:

Double accident benefit can be allowed to the extent of the Sum Assured for an extra

Premium.

Steps to introduce the scheme:

Put up notice for the knowledge of the employees that you are going in for LIC's Scheme
in lieu of EDLI.

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.

Exemption from the Employees Deposit Linked Insurance Scheme, 1976
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 favorable 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