Towards enhancing ‘ease of living’ for its members, EFPO has introduced an auto-mode settlement of advance claims for education & marriage, and housing. The new initiative was launched on 6 May 2024 in India. Since then, EPFO has approved 13,011 cases for Rs. 45.95 crores via this initiative providing speedy service. In a flip towards technology boost, the new Auto Claim Solution processes claim automatically by the IT system without the need for any human intervention.
The auto mode of claim settlement was introduced in April 2020 for the purpose of advance for illness. Currently, the limit has been expanded to Rs.1,00,000/- from Rs. 50,000/-. This initiative is expected to benefit lakhs of EPFO members.
An EPFO member Anirudh Prasad had applied for advance for illness under para 68J on 9th May 2024. His advance claim was settled within three days on 11th May for an amount of Rs. 92,143/-. This year alone around 2.25 crore members are expected to reap the benefits of this facility, states the official release.
During the last financial year, EPFO settled around 4.45 crore claims, out of which more than 60 per cent (2.84 crore) were advance claims. Out of the total advance claims settled in 2022-23, around 89.52 lakh were settled using auto-mode.
Towards boosting ‘ease of living’, the auto claim solution has now been extended for all claims under para 68K (education & marriage purpose) and 68B (housing purpose) of EPF Scheme, 1952.
What happens under Auto Claim Settlement?
Under the new technology, any claim with KYC, eligibility, and bank validation is processed for payment by IT tools automatically.
This significantly reduces the periodicity of claim settlement from 10 days to within 3-4 days. Moreover, the claims that are not validated by the IT system are not returned or rejected. They are further, undertaken for a second level of scrutiny and approvals.
The expansion of the scope of the auto claims to the housing, marriage, and education purposes aims to directly benefit many EPFO members to avail their funds within the shortest possible duration.
