EPFO Expands Auto Claim Settlement for Education, Marriage, and Housing
The auto mode of claim settlement was initially introduced in April 2020 for the purpose of advance payment for illness. The limit for this has now been enhanced to Rs.1,00,000/-. During the current year, around 2.25 crore members are expected to reap the benefits of this facility.
The Employees’ Provident Fund Organization (EPFO) has announced the expansion of its auto-mode settlement for advance claims related to education, marriage, and housing. This automated system processes claims without any human intervention, according to a release by the Ministry of Labour and Employment.
The auto mode of claim settlement was initially introduced in April 2020 for the purpose of advance payment for illness. The limit for this has now been enhanced to Rs.1,00,000/-. During the current year, around 2.25 crore members are expected to reap the benefits of this facility.
In the financial year 2023–24, EPFO settled around 4.45 crore claims, out of which more than 60% (2.84 crore) were advance claims. Out of the total advance claims settled during the year, around 89.52 lakh claims were settled using auto-mode.
The Ministry stated, “To facilitate ‘Ease of Living’, the auto claim solution has now been extended for all claims under Paragraphs 68K (education & marriage purposes) and 68B (housing purposes) of the EPF Scheme, 1952. In addition, the limit has been doubled from earlier Rs. 50,000/- to Rs. 1,00,000/-. This move is expected to benefit lakhs of EPFO members.”
The entire process of auto-settlement is IT system driven, eliminating human intervention. Any claim with KYC, eligibility, and bank validation is processed for payment by IT tools automatically. As a result, the periodicity of claim settlement is reduced significantly from 10 days to within 3–4 days for such advances. Claims that are not validated by the system are not returned or rejected. They are further undertaken for a second level of scrutiny and approval.
The expansion of the scope of the auto claims to housing, marriage, and education purposes, as well as the enhancement, will directly help many members avail their funds within the shortest possible duration. This will substantially aid them in promptly meeting their education, marriage, or housing requirements.
Introduced on May 6, 2024, Pan India, EPFO has since approved 13,011 cases for Rs. 45.95 crores via this initiative, providing speedy service to its members.
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