EPFO settles 4.45 crore claims in FY24

Retirement fund body EPFO has settled 4.45 crore claims during 2023-24, with 2.84 crore of these being advance claims (for withdrawal of funds).

To facilitate 'ease of living', the auto claim solution has been extended for all claims under para 68K -- education & marriage purpose -- and 68B -- housing purpose -- of EPF Scheme, 1952, a labour ministry statement said.

In addition, it stated that the limit has been doubled from earlier Rs 50,000 to Rs 1,00,000. This move is expected to benefit lakhs of EPFO (Employees' Provident Fund Organisation) members.

According to the statement, during the financial year 2023-24, the EPFO settled around 4.45 crore claims, of which more than 60 per cent (2.84 crore) claims were advance claims (for withdrawal of funds on grounds like illness, marriage, education).

Of total advance claims settled during the year, about 89.52 lakh claims were settled using auto-mode. The entire process in auto-settlement is IT system driven, eliminating human intervention.

As a result, the periodicity of claim settlement is reduced significantly from 10 days to 3-4 days for such advances. The claim that are not validated by system are not returned or rejected. They are further undertaken for second level of scrutiny and approvals.

The expansion of the scope of the auto claims to the housing, marriage and education purposes as well as enhancement will directly help many members to avail their funds within the shortest possible duration, which will substantially aid them in promptly meeting their education, marriage, or housing requirements.

Introduced on May 6, 2024 across the country and since then the EPFO has approved 13,011 cases for Rs 45.95 crore vide this initiative providing speedy service.

For enhancing ease of living for its crores of members, the EPFO has introduced auto-mode settlement of advance claims for the purpose of education and marriage and housing.

The EPFO has introduced an auto claim solution wherein claims are processed automatically by IT system without any human intervention.

The auto mode of claim settlement was introduced in April 2020 to assist people in advance claims for illness. The limit for this claim has been enhanced to Rs 1,00,000. During the current year, around 2.25 crore members are expected to reap the benefits of this facility.

Citing an example, the ministry stated that Anirudh Prasad had applied for 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. There are many such stories like that of Anirudh Prasad in EPFO, it claimed.