Source | Hindustan Times
For people unfortunate enough to lose their jobs, here’s a silver lining. The government plans to continue providing them life insurance as long as they get employed in three years.
The state-run Employees’ Provident Fund Organisation (EPFO) plans to extend life insurance cover to people out of a job at a nominal premium amount for up to three years.
The move will help thousands of organised sector workers who lose insurance cover the moment they’re unemployed, a major handicap in a country where around 3% people are insured.
The proposal comes days after the government was forced to scrap proposed changes to provident fund withdrawals following violent protests by thousands of garment workers in Bengaluru.
The decision to provide insurance cover is expected to re-build the image of the government dubbed anti-poor by the Opposition after proposed changes barred workers from withdrawing entire retirement fund if unemployed for at least two months.
Every month, employees contribute 12% of their pay to the EPF account. The employer puts in an identical sum, 0.5 % of which is earmarked for the Employee’s Deposit Linked Insurance Scheme.