Page 162 - Group Insurance and Retirement Benefit IC 83 E- Book

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.

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.

Conclusion

The Central Government while exercising the powers U/S 6C of the EPF and MP Act
,1952, enacted the Employees Deposit Linked Insurance Scheme in 1976 by GSR/488

,dated 28th July 1976.This Scheme came into force i.e. 1st August ,1976.The purpose of

the scheme is to provide life insurance benefits to employees ,who are already covered
under Provident Fund /Pension Funds. The employer has to pay contribution equal to 0.5

% of the total wages of the employees. The employee does not contribute any amount to
the scheme. The salary limit for average of employees is same as the Provident Fund.

Benefit to nominee of employee- If an employee dies during employment, his nominee or

family member gets an amount equal to average balance in the Provident Fund Account

of the deceased employee during last 12 months. If such balance is more than
Rs.35000,the insurance amount payable is Rs.35000 plus 25% of the amount in excess of

Rs. 35000 ,subject to overall limit of Rs. 60000( w.e.f. 13th June 2000). If the employees

are covered under another life insurance scheme whose benefits are better than this
scheme, an exemption from this scheme can be obtained.