This is yet another insurance policy from Reliance Life that has been planned for those firms which has ten full time permanent employees to whom Employee’s Provident Fund and the Miscellaneous Provisions Act 1952 is applicable. These firms are eligible to avail the ELDI or Employee’s Deposit Linked Insurance plan.
According to the ELDI or Employee’s Deposit Linked Insurance Scheme, the benefit is equal to average balance of the credit of the dead employee in the provident fund through the previous 12 months provided that the balance is not more then Rs. 35000/-. In such a case the insurance cover would be the sum that is corresponding to the balance plus 1/4th of the balance amount (1/4th of Rs. 35,000/-). This one is subject to a maximum amount of Rs. 60,000/-. If the term of the service is less or the salary of the employee is very low then regular balance would be very less.
For example, if a person is earning rupees 10,000/-per month then the contribution from the both the employer and the employee would be Rs. 1200/-. So the total amount that has been contributed towards the Provident Fund would be Rs. 2400/-. So the average balance in the last 12 months would be Rs. 15,600/-. (2400×1+2400×2+2400×3+……+2400×12)/12. Therefore the money that would be received by the family of the individual employee after his or her death as Employee’s Deposit Linked Insurance Scheme (ELDI) would be Rs. 15,600/-.
As per Section 17(2A) of the Employee’s Provident Fund 1952, the employer of an institution may be exempted from making any contribution on to this scheme. Here the Group Term Life scheme of Reliance Life Insurance has got the approval from the Central Employee Provident Fund Organization that makes it as a better option.
Possibly Related Posts:
- Reliance Life Traditional Golden Year Plan | Key Features
- Reliance Special Credit Guardian Plan | Key Features
- Reliance Credit Guardian Plan | Key Features
- Reliance Super Five Plus | Key Features
- Reliance Endowment Plan | Key Features
- Reliance Life Insurance Traditional Golden Years Plan | Key Features
- Reliance Life Insurance Classic Plan | Key Features
- Reliance Life Insurance Highest NAV Advantage Plan | Key Features
- Reliance Life Insurance Money Multiplier Plan | Key Features
- Reliance Super Invest Assure Plan | Reliance Life Insurance
Tags: Insurance, insurance policy, Reliance Life, Reliance Life Insurance