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The Employee Provident Fund Organization (EPFO) has taken significant strides in enhancing the ease of living for its millions of members by introducing innovative measures to expedite claim settlement processes. In a recent development, EPFO has expanded its “Ease of Living” initiative, focusing on reducing service delivery time for claim settlements.

EPFO’s latest endeavor involves the introduction of auto-mode settlement for advance claims related to education, marriage, and housing purposes. This initiative aims to streamline claim processing by leveraging automation, thereby minimizing the need for human intervention. Initially introduced for illness-related advances in April 2020, the auto-mode settlement has now been extended to cover a wider range of purposes, with the claim limit enhanced to Rs. 1,00,000/-.

The significance of this expansion becomes evident considering the substantial number of claims settled by EPFO during the financial year 2023-24, with a significant portion comprising advance claims. By leveraging IT-driven automation, EPFO has successfully reduced the claim settlement period from 10 days to just 3-4 days for eligible claims. This streamlined process ensures that valid claims are processed promptly without the need for manual validation, thereby enhancing efficiency and member satisfaction.

The auto-mode settlement is facilitated through an IT-driven system that validates KYC details, eligibility criteria, and bank information to ensure seamless processing and payment. Claims that meet the required criteria are automatically processed for payment, eliminating the need for manual intervention and reducing the risk of delays or rejections.

The extension of auto-mode settlement to cover education, marriage, and housing-related advances is poised to benefit a significant number of EPFO members, enabling them to access their funds promptly to meet essential expenses. By doubling the claim limit to Rs. 1,00,000/-, EPFO has further enhanced the accessibility and flexibility of its services, catering to the diverse needs of its members.

Since its implementation on May 6, 2024, the initiative has already yielded promising results, with thousands of cases approved for speedy settlement, amounting to Rs. 45.95 crores. This demonstrates EPFO’s commitment to leveraging technology to enhance member experience and provide efficient, member-centric services.

Overall, EPFO’s digital transformation initiatives, particularly the expansion of auto-mode claim settlement, signify a significant step towards modernizing service delivery and ensuring timely access to funds for its vast member base. By embracing automation and innovation, EPFO continues to uphold its mission of facilitating financial security and well-being for all its members.

Ministry of Labour & Employment

EPFO expands ‘Ease of Living’: Reducing service delivery time for claim settlement

EPFO enhances limits for auto-mode of claim settlement

EPFO introduces Auto claim settlement for Education, marriage & housing

Posted On: 13 MAY 2024

Shri Anirudh Prasad had applied for advance for illness under para 68J on 09.05.2024. His advance claim was settled on 11.05.2024 for an amount of Rs. 92,143/- within 03 days. There are many such stories like that of Shri Anirudh Prasad in EPFO.

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 where in claim is processed automatically by IT system without any human intervention.

Auto mode of claim settlement was introduced in April, 2020 for the purpose of advance for illness. Now this limit 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.

During the financial year 2023-24, EPFO settled around 4.45 crore claims, out of which more than 60% (2.84 crore) claims were advance claims. Out of total advance claims settled during the year, around 89.52 lakh claims were settled using auto-mode.

To facilitate “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. In addition, the limit has been doubled from earlier Rs. 50,000/- to Rs.1,00,000/-. This move is expected to benefit lakhs of EPFO members.

The entire process in auto-settlement is IT system driven, eliminating human intervention. Any claim with KYC, eligibility and bank validation is processed for payment by IT tools automatically. As a result of this, the periodicity of claim settlement is reduced significantly from 10 days to within 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 6th May 2024 pan India and since then EPFO has approved 13,011 cases for Rs. 45.95 crores vide this initiative providing speedy service.

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