What is the automatic claim settlement facility? Check the latest update for PF beneficiaries

EPFO: The Employees’ Provident Fund Organization (EPFO) has implemented automatic settlement of advance claims for housing, education and marriage to improve the living conditions of its millions of members.

Automatic claim resolution for housing purposes

The pension fund body has stated that all claims under section 68K – education and matrimonial purposes – and 68B – housing purposes – of the EPF Scheme, 1952 will now be covered under the car claim solution. The EPFO ​​has implemented an automated claims solution that eliminates the need for human intervention by processing claims automatically through an IT system.

How EPFO’s action will help a large number of members

Moreover, it was mentioned that the previous limit of Rs 50,000 has been doubled to Rs 1,00,000. This move is expected to help millions of EPFO ​​members. Many members will directly benefit from the expansion of auto claims to include housing, marriage and education purposes, as well as improvements. This will enable them to access their money in the shortest possible time, which will significantly help them meet their housing, marriage and education needs as quickly as possible.

Register settlements

During 2023–2024, EPFO ​​settled 4.45 crore claims, of which 2.84 crore were advance claims (for cash withdrawal). In the fiscal year 2023–2024, the EPFO ​​settled around 4.45 crore claims, of which 2.84 crore (or more than 60%) were advance claims (for money to be withdrawn due to illness, marriage or education).

About 89.52 lakh advance claims were automatically settled out of all claims settled during the year. Human intervention is eliminated as the entire automated settlement process is controlled by IT systems. Consequently, for such advances, the periodicity of claims settlement is significantly reduced from 10 days to 3 to 4 days.

EPFO’s approach to unvalidated claims

Claims of system inability to validate will not be rejected or returned. They are carried out to gain approval and control at a higher level. The EPFO ​​was introduced nationwide on May 6, 2024 and has since cleared 13,011 cases worth a total of Rs 45.95 crore through this initiative, which provides speedy service.

In April 2020, the automatic claim settlement mode was implemented to assist individuals with prior illness claims. The maximum amount that can be claimed is now Rs 1,00,000. It is expected that around 2.25 crore members will benefit from this facility this year.

Fast claim handling by Anirudh Prasad

Anirudh Prasad applied for sickness advance under section 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, according to the Labor Ministry, citing an example . It stated that there are numerous stories similar to Anirudh Prasad’s in EPFO.