EDLI Scheme
One of the organizations opted to take policy from LIC to meet the statutory obligations. However, did not take exemption from the EPFO.
Now EPFO is demanding contribution with penalty/demurrage since the beginning.
What remedy is available to the employer who was never having any malafide intentions?
Regards,
From India, Delhi
10One of the organizations opted to take policy from LIC to meet the statutory obligations. However, did not take exemption from the EPFO.
Now EPFO is demanding contribution with penalty/demurrage since the beginning.
What remedy is available to the employer who was never having any malafide intentions?
Regards,
From India, Delhi
The organisation had opted a scheme of LIC but did not buy it and if bought it did not inform the EPFO. Without informing the EPFO how can the EPFO come to know that you have a better scheme than their EDLI? That means, the fault is yours. Then you should pay interest and damages as claimed by EPFO. There is no way out. It is cost of your gross negligence and you have to shoulder it by yourself.
From India, Kannur
From India, Kannur
EPFO have the liberty to recover the damages.
While taking the LIC policy you have to intimate the PF Office and get a approval letter compulsarily from them by producing all the documents and do a seperate compliance for it and same in the case of if want to start EDLI again.
From India, New Delhi
While taking the LIC policy you have to intimate the PF Office and get a approval letter compulsarily from them by producing all the documents and do a seperate compliance for it and same in the case of if want to start EDLI again.
From India, New Delhi
Before taking EDLI policy from LIC, you need to obtain written exemption from EPFO duly convincing them that you have a better scheme than theirs for the benefit of employees. It is clearly mentioned in the scheme. Since you have not complied with statutory provisions, EPFO is right as per law to demand from you all the arrears with interest of the EDLI contribution. You may only request for a waiver, but ultimately EPFO will only have the final say.
From India, Mumbai
From India, Mumbai
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HDFC Gr Term Policy in lieu of EDLI 17.11.2014.pdf