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CMA Intermediate · Business Laws and Ethics · Employees Provident Fund and Miscellaneous Provisions Act, 1952

Dev, a member of a provident fund under the Scheme, wishes to pay life insurance premia out of his Fund account. According to Schedule II to the EPF Act, 1952, what is the position?

The Scheme may lay down the conditions under which a member is permitted to pay life insurance premia from the Fund. Therefore payment is allowed only within those conditions, and it is neither wholly prohibited nor available freely without conditions.

  1. AA Scheme may provide the conditions under which a member may be permitted to pay premia on life insurance from the FundCorrect
  2. BPayment of life insurance premia from the Fund is absolutely prohibited by the Act
  3. CPayment is permitted without any conditions on a member's request
  4. DPayment is permitted only after the member's death by his nominee

Explanation

Item 17 of Schedule II lists the conditions under which a member may be permitted to pay premia on life insurance from the Fund as a matter for the Scheme. So it is neither prohibited nor unconditional.

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