Private insurance in lieu of Employees Deposit-Linked Insurance Scheme, 1976

Employee Provident Fund Organisation approves M/s Shriram Insurance Company Limited for providing Insurance Scheme in lieu of Employees’ Deposit-Linked Insurance Scheme, 1976.

EPFO could find that the proposal submitted by M/s Shriram Life Insurance Company Limited, it has been found that benefits conferred by their policy ¡s better than the benefits under the Employees’ Deposit-Linked Insurance Scheme, 1976. Hence, the organisation that manages Provident Fund of Private Sector employees as well as certain categories of Government Employees has decided that those employers who opt for their policy mentioned above to cover their employees shall be entitled for grant of relaxation/exemption from Employees’ Deposit-Linked Insurance Scheme. 1976.

The full text of this order dated 19.10.2012 is as follows.

Employees’ Provident Fund Organisation

(Ministry of Labour, Govt. Of India)

Bhavlshya Nidhi Bhawan, 14- Bhikaji Cama Place, New Delhi-110066

No. C-111/16/1(154)EDLI/Exmpt/HQ/22236

Date: 19.10.2012

To

All Addl. Central PF Commissioners (Zones),

All Regional PF Commissioners (OIC ROs/SROs)

Subject: Approval of Group Term Insurance Plan issued by M/s Shriram Life Insurance Company Limited for issuance in lieu of the Employees’ Deposit Linked Insurance Scheme, 1976.

Sir,

The Central Board of Trustees, in its 157th meeting had approved the proposal for allowing Insurance Companies In Private sector coming under the regulatory control of IRDA to offer the Group Insurance Scheme conferring similar or better benefits than the Employees’ Deposit-Linked Insurance Scheme, 1976 for the purpose of grant of exemption from the Employees’ Deposit-Linked Insurance Scheme, 1976.

2. M/s Shriram life Insurance Company Limited, has approached the Employees’ Provident Fund Organisation for approval of the Group Term Insurance Plan offered by them for issuance in lieu of Employees’ Deposit-Linked Insurance Scheme, 1976. The salient features of their policy are as under:

(i) The Policy is arranged to provide Assurance benefits to the employees with a minimum of Rs. 1,32,000 as the product minimum is Rs. 1,32,000.

(ii) All members of the Employees’ Provident Funds Scheme, 1952 in the company will be eligible to be members of this policy. The member becomes eligible for the coverage as soon as he/she becomes the member of the Employees’ Provident Funds Scheme, 1952.

(iii) No member shall withdraw from the Scheme so long as he satisfies the conditions of eligibility described above.

(iv) The employer (policy holder) will give an undertaking to the effect that all new members have been included from the date of their joining. If a death claim is received in respect of a member whose premium and/or name is not submitted to Shriram Life Insurance, the employer undertakes to provide the benefits for the same.

(v) “the Beneficiary” shall mean the person or persons who has/have been nominated by the Member/s as beneficiary/beneficiaries and will be the same as envisaged under the Employees’ Deposit-Linked Insurance Scheme, 1976.

3. On a careful examination of the proposal submitted by M/s Shriram Life Insurance Company Limited, it has been found that benefits conferred by their policy ¡s better than the benefits under the Employees’ Deposit-Linked Insurance Scheme, 1976. Therefore, those employers who opt for their policy mentioned above to cover their employees shall be entitled for grant of relaxation/exemption from Employees’ Deposit-Linked Insurance Scheme. 1976.

4. Regional Provident Fund Commissioners may, therefore, forward the proposal for-exemption under Employees’ Deposit-Linked Insurance Scheme, 1976 wherever the employer has opted for Group Term Insurance Plan of M/S Shriram Life Insurance Company Limited. However, while forwarding the proposal as per the guidelines issued by Headquarters’ Circular No. EDLI/C-I/Sc/Notification/02/General Circular dated 10/11th September 2002, a certificate on the following points may also be enclosed:

(a) That the policy was valid on the date when application of exemption from Employees’ Deposit-Linked Insurance Scheme, 1976 was made.

(b) That the employer has enrolled all eligible members and has also given an undertaking to that effect.

(c) That the insurance benefits under no circumstances shall be less than what would otherwise have been admissible to the beneficiary under Employees’ Deposit-Linked Insurance Scheme, 1976.

(d) That the certificate of IRDA permitting M/s Shriram Life Insurance Company Limited to transact in Life Insurance business was valid at the time application for exemption from the provisions of Employees’ Deposit Linked Insurance Scheme, 1976 was made.

Yours Faithfully,

Enclosures : As above.

sd/-

(P.K. UDGATTA)

Addl. Central Provident Fund Commissioner (Compliance)

Source:  www.epfindia.com