The Employees’ Provident Funds Organisation (EPFO) has taken a significant step to aid its subscribers by escalating the eligibility limit of automated claims processing, also known as auto claims processing, under Paragraph 68J from Rs 50,000 to Rs 1 lakh. This enhancement was officially communicated through a circular distributed on April 16, which emphasized that the raised threshold had already been integrated into the application software as of April 10, 2024. This move is aimed at promoting ease of living for EPFO members and has received endorsement from the Central Provident Fund Commissioner (CPFC).
The updated regulation now means that subscribers can efficiently process claims up to Rs 1 lakh automatically. EPFO has instructed that this new development needs to be broadcasted appropriately to all stakeholders, ensuring that the information reaches the end-users effectively.
But what does Paragraph 68-J of EPFO entail, and why is this update significant for members? Under Paragraph 68-J, EPFO members have the option to apply for an advance from their provident fund under certain health-related circumstances. This includes extended hospital stays exceeding one month, the need for major surgical interventions in a hospital setting, or dealing with severe health conditions such as tuberculosis, leprosy, paralysis, cancer, mental instability, or heart-related ailments.
In the year 2017, EPFO made the process more accessible for its members by allowing fund withdrawals from EPF accounts for medical treatments and the purchase of equipment to assist with disabilities, abandoning the requirement for medical certificates. The Employees’ Provident Fund Scheme of 1952 was subsequently modified to eliminate the necessity for various certificates and forms previously needed to advance funds for medical treatments or to acquire disability aids.
Now, members can simply use a composite claim form accompanied by a self-declaration to request fund withdrawals from their EPF accounts based on different grounds. This simplification of the withdrawal process has significantly lessened the administrative burden for members while enabling quicker access to funds when needed the most.
Moreover, EPFO has taken particular consideration of its physically challenged members. Under Paragraph 68-N, such members are now empowered to take an advance from their provident fund to purchase equipment essential for managing their handicap. This provision ensures that people with special needs have better support in managing their health and wellbeing, without the hindrances of bureaucratic procedures.
The EPFO’s endeavor to streamline processes and widen the ambit of auto claim settlements is a landmark in improving financial autonomy and the overall member experience. By doubling the limit for auto withdrawal claims, the organization has showcased its commitment to simplifying benefits for its subscribers and catering to their emergent needs with swiftness and sensitivity.
Furthermore, by enabling fund withdrawals through a composite form coupled with self-declaration, the EPFO has placed a great deal of trust in its subscribers and aligned its processes with the principles of good governance and ease of doing business.
The updated auto claim settlement limit under Paragraph 68J by the EPFO marks a progressive step forward. It stands as a testament to the organization’s ongoing efforts to provide a more responsive and member-centric service, ensuring that its members’ welfare is prioritized, and their financial needs during challenging times are met with ease and convenience.
