The Employees’ Provident Fund Organisation (EPFO) has introduced auto claim settlement for education, marriage, and housing in a press release by the Ministry of Labour & Employment on Monday.
In a statement, EPFO said, “For enhancing ease of living for its crores of members, EPFO has now introduced auto-mode settlement of advance claims for the purpose of education & marriage and housing. EPFO has introduced an Auto Claim Solution wherein claim is processed automatically by IT system without any human intervention.”.
Through the Auto Claim Settlement, claims are handled automatically by an IT system without the need for human involvement.
The auto mode for claim payment, first introduced in April 2020 for illness-related advances, has now been expanded to include all claims under paragraphs 68K (education and marriage) and 68B (housing) of the EPF Scheme of 1952.
Additionally, EPFO has raised the limit for illness-related claims from Rs. 50,000 to Rs. 1,00,000.
“During the current year, around 2.25 crore members are expected to reap the benefits of this facility,” said EPFO.
In FY 2023-24, EPFO settled about 4.45 crore claims. Over 60% (2.84 crore) of these were advance claims. Out of the total advance claims settled in this year, about 89.52 lakh were settled automatically.
Also Read: EPF Withdrawal Limit for Medical Treatment Changed. Now Get up to Rs 1 Lakh
Under the auto settlement policy, any claim that includes KYC, eligibility, and bank validation is immediately processed for payment using IT tools.
As a result, the frequency of claim settlement is lowered from 10 days to 3-4 days for such advances. Claims that are not validated by the system will not be returned or rejected. They are then submitted for a second level of review and approval, EPFO said.
EPFO launched this extended auto-claim facility on May 6, 2024. Since then, EPFO has settled 13,011 cases totaling Rs. 45.95 crores as a result of this initiative to provide rapid service.
Want to learn the art and science of managing your money? The 1% Club can help. Details here
Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before investing.
