Insurance Compensation Scheme liberalised under ESIC , EPFO
Two minute reads :
Centre has enhanced and liberalised compensation scheme under Employees State Insurance Corporation and Employees provident fund Organization.
Maximum insurance benefit has been increased from Rs 6 lakh to Rs 7 lakh, and the provision of minimum insurance benefit of Rs 2.5 lakh has been restored and will apply retrospectively from February 15, 2020 for the next three years.
The decision was taken to mitigate the financial difficulties faced due to the death of single earning member in family.
The decision on the relief measures were taken by Prime Minister Narendra Modi in an important meeting held in New Delhi on Saturday.
This benefit will be available retrospectively with effect from 24th of March of last year and for all such cases till 24th of March next year.
The benefit under the relaxed norms will be made available to families of even those employees who may have changed jobs in the last 12 months preceding their death.
The amount of corpus will be used to give a monthly financial support or stipend from 18 years of age for the next five years to take care of his or her personal requirements during the period of higher education. On reaching the age of 23 years, they will get the corpus amount as one lump-sum for personal and professional use.
This guidelines of these schemes are being issued by the Ministry of Labour and Employment.