EPFO Simplifies Death Claim Process for Minor Children

The Employees’ Provident Fund Organisation (EPFO) has introduced a simplified process for death claim settlements in the case of minor children. Under the new rule, claimants will no longer be required to produce a guardianship certificate, making the process faster, easier, and more supportive for families dealing with the loss of a member. This move is aimed at reducing procedural hurdles and ensuring timely financial assistance to beneficiaries.

Now, EPFO has made it clear that if the settlement money is being deposited directly into a bank account in the minor child’s name, no additional guardianship certificate is needed.
This holds true for all kinds of settlements, such as provident fund claims, insurance payouts, and pension entitlements that are due after a member passes away.

Guidelines for Claimants: It is necessary to advise claimants, who are usually surviving parents or legal guardians, to open separate bank accounts in each minor child’s name.
The settlement amount and any pension owed to the corresponding account will be directly credited by the EPFO as soon as these accounts are formed.

Families who have lost a breadwinner will greatly benefit from this change: 

• It removes the need for drawn-out legal processes in order to acquire guardianship documents. 
• It expedites the distribution of desperately needed funding to underprivileged children and families. 
• It encourages more straightforward and compassionate handling of death-related claims.

In order to guarantee that dependents, particularly vulnerable children, receive their due benefits free from administrative obstacles, EPFO has made a decision that represents a larger commitment to member-centric reforms.