[align=justify]The following provisions of the Scheme would throw some light to your query:
[/align][align=justify]22.Scales of assurance benefit and the minimum average balance to be maintained by an employee. (1) On the death of an employee, who is a member of the Fund or of a provident fund exempted under section 17 of the Act, as the case may be, the persons entitled to receive the provident fund accumulations of the deceased shall, in addition to such accumulations be paid an amount, equal to the average balance in the account of the deceased in the Fund or of a Provident Fund exempted under Section 17 of the Act, as the case may be, during preceding twelve months or during the period of his membership, whichever is less, except where the average balance exceeds rupees twenty-five thousand, the amount payable shall be rupees twenty-five thousand plus 25% of the amount in excess of rupees twenty-five thousand subject to a ceiling of rupees thirty-five thousand.[/align] [align=justify]Explanation 1. For the purpose of determining the average balance in the Fund or in the provident fund exempted under section 17 of the Act, as the case may be, in relation to any employee, the sum total of contributions by the employee and the employer, due for and upto the relevant period, whether paid or unpaid in the Fund or in the Fund or in the provident fund exempted under section 17 of the Act, as the case may be, together with interest thereon, shall be included.[/align] [align=justify]Explanation 2. The period of twelve months for calculation of benefits under this Scheme shall be computed backwards from the month preceding the month in which death of the member occurs.[/align] [align=justify](2) In the case of a part-time employee who was a member of the Fund or of a provident fund exempted under section 17 of the Act, as the case may be, while serving in more than one factory or establishment the quantum of benefit under this Scheme shall be determined with reference to the average of the aggregate balance in all his accounts in the Fund or of a provident fund exempted under section 17 of the Act, as the case may be, during the preceding twelve months.[/align]23. Assurance benefit to whom payable. (1) The nomination made by an employee under Employees Provident Funds Scheme, 1952, or under the provident fund exempted under section 17 of the Act, as the case may be, shall be treated as nominations under this Scheme and the assurance amount shall become payable to such nominee or nominees.
(2) If no nomination subsists or if the nomination relates only to part of the amount standing to his credit in the Fund or of a provident fund exempted under section 17 of the Act, as the case may be, the whole amount or the part thereof to which the nomination does not relate, as the case may be, shall become payable to the members of his family in equal shares:
Provided that no share shall be payable to
(a) sons who have attained majority;
(b) sons of a deceased son who have attained majority;
(c) married daughters whose husbands are alive;
(d) married daughters of a deceased son whose husbands are alive;
if there is any member of the family other than those specified in clauses (a), (b), (c) and (d):
Provided further that the widow or widows, and the child or children of a deceased son shall receive between them in equal parts only the share which that son would have received if he had survived the employee and had not attained the age of majority at the time of his death.
(3)In any case to which the provisions of sub-paragraphs 1 and 2 do not apply the whold amount shall be payable to the person legally entitled to it.
(4)If a person who is eligible to receive assurance Scheme benefit of the deceased member in terms of sub-paragraph 1,2 or 3 is charged with the offence of murdering the member or for abetting in the commission of such an offence, his claim to receive assurance benefit shall remain suspended till the conclusion of the criminal proceedings instituted against him. If on the conclusion of the criminal proceedings, the person concerned is : -
(a) convicted for the murder or abetting the murder of the member, he shall be debarred from receiving his share of deposit linked assurance benefit which shall be payable to other eligible members of any of the family; or
(b) acquitted of the charge of murdering or abetting in the murder of the member, his share shall be payable to him.
Explanation. For the purpose of this paragraph an employees posthumous child, if born alive, shall be treated in the same way as a surviving child born before his death.
[align=justify]24.Assurance amount how to be paid. (1) The nominee or nominees or other claimants shall send a written application to the Commissioner through the employer in such form as the Commissioner may specify, to claim payment under this Scheme. [/align] (2) If the person to whom any amount is to be paid under this Scheme is a minor or a lunatic, the payment shall be made in accordance with the provisions in the Employees Provident Funds Scheme, 1952 relating to payment to such persons.
(3) The payment may be made, at the option of the person to whom payment is to be made,
(i) by postal money order, or
(ii) by deposit in the payees bank account in any Scheduled Bank or any Co-operative Bank (including the Urban Co-operative Bank) or any post office, or;
(iii) by deposit in the payees name (the whole or part of the amount) in the form of annuity term deposits scheme in any Nationalised Bank, or
(iv) through the employer.
(4) The claims, complete in all respects submitted along with the requisite documents shall be settled and benefit amount paid to the beneficiaries within thirty days from the date of its receipt by the Commissioner. If there is any deficiency in the claim, the same shall be recorded in writing and communicated to the applicant within thirty days from the date of receipt of such application. In case the Commissioner fails without sufficient cause to settle a claim complete in all respect within thirty days, the Commissioner shall be liable for the delay beyond the set period and penal interest 12% per annum may be charged on the benefit amount and the same may be deducted from the salary of the Commissioner.
25. Registers, Records etc. The Commissioner may with the approval of the Central Board specify the registers and records to be maintained in respect of the employees, the form or design of any identity card, token or disc for the purpose of identifying any employee or his nominee or nominees or a member of his family entitled to receive the benefit under this Scheme and such other formalities as have to be completed in connection with the payment of the said benefit, subject to such periodical verification as may be considered necessary.
26. Annual Report on the working of this scheme. The Central Board shall approve before the 10[sup]th[/sup] of December and submit to the Central Government before the 20[sup]th[/sup] of December each year, a report on the working of this Scheme during the previous financial year.