EPFO: The Employees’ Provident Fund Organization (EPFO) has implemented auto-mode settlement of advance claims for housing, education, and marriage in order to improve living conditions for its crores of members.
Auto-Claim Solution for Housing Purposes
The retirement fund body has declared that all claims under paragraph 68K — education and marriage purposes — and 68B — housing purposes — of the EPF Scheme, 1952 will now be covered by the auto claim solution. The EPFO has implemented an auto-claim solution that eliminates the need for human intervention by processing claims automatically through an IT system.
How EPFO’s Action Will Assist Lakhs of Members
Furthermore, it mentioned that the previous Rs 50,000 limit has been doubled to Rs 1,00,000. It is anticipated that this action will help lakhs of EPFO members. Many members will directly benefit from the auto claims’ expansion to include housing, marriage, and education purposes as well as enhancements. This will enable them to access their funds in the shortest amount of time, which will significantly help them meet their housing, marriage, and education requirements as soon as possible.
Record Settlements
During 2023–2024, EPFO settled 4.45 crore claims, 2.84 crore of which were advance claims (for money withdrawal). In the fiscal year 2023–2024, the EPFO settled about 4.45 crore claims, of which 2.84 crore (or more than 60%) were advance claims (for funds to be withdrawn due to illness, marriage, or education).
Approximately 89.52 lakh advance claims were resolved automatically out of all the claims that were settled during the year. Human intervention is eliminated because the entire auto-settlement process is driven by IT systems. Consequently, for such advances, the periodicity of claim settlement is notably decreased from 10 days to 3–4 days.
EPFO’s Approach to Unvalidated Claims
Claims that the system is unable to validate are neither rejected nor returned. They are carried out in order to receive approvals and scrutiny at a higher level. Introduced nationwide on May 6, 2024, the EPFO has since approved 13,011 cases for a total of Rs 45.95 crore through this initiative, which offers prompt service.
In April 2020, the auto mode of claim settlement was implemented to help individuals with advance illness claims. The maximum amount that can be claimed is now Rs 1,00,000. It is anticipated that approximately 2.25 crore members will benefit from this facility this year.
Anirudh Prasad’s Swift Claim Settlement
Anirudh Prasad applied for an advance for illness under para 68J (of the scheme) on May 9, 2024, and his advance claim was settled on May 11, 2024, for Rs 92,143 within three days, according to the labor ministry, citing an example. It stated that there are numerous stories similar to Anirudh Prasad’s in EPFO.