Page 88 - IC23 life insurance application

ACCIDENT BENEFIT:

Double accident benefit can be allowed to the extent of the SA for an extra Premium

@Rs.0.75 per thousand SA per annum. Double Accident cover under all group

schemes taken together should not exceed Rs.1.5 Lacs.

GROUP INSURANCE SCHEME IN LIEU OF EDLI

All employers to whom the Employees' Provident Fund and Misc. Provision Act.,

1952 applies have a statutory liability to provide Life Insurance benefit to all their

employees by subscribing to Employees Deposit Linked Insurance (EDLI) Scheme

1976 i.e. 51 paise per Rs.100/- wage bill of each employee under Challan No.21 &

22. Section 17 (2A) further provides that the employers may be exempted from

contributing to this Scheme, if they have provided for better insurance benefits

through any other attractive scheme.

THE BETTER ALTERNATIVE

LIC's Group Insurance Scheme in lieu of EDLI has been accepted as one such

better alternative vide Central Provident Fund Commissioner's Circular No.2/1849/88

dated 11-07-1990 and 05-09-1994. Each employee is covered for a sum assured

ranging between Rs.11,000/- to Rs.37,000/- depending upon the current salary and

length of service irrespective of the actual balance in the Provident Fund.

The exemption is granted by the P.F. authorities from the first of the month in which

the Group Insurance Scheme is introduced and application for seeking exemption is

filed with the RPFC.

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