Skip to content

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

Under the EPF Act, 1952, which statement about the Deposit-linked Insurance Fund and the payment of insurance amounts to a nominee is correct?

The Insurance Fund vests in the Central Board under section 6C(5). Schedule IV allows the scheme to provide that the amount due to a nominee or family member is paid only by way of deposit in a savings bank account in that person's name, not in cash.

  1. AThe Fund vests in the Central Board, and the scheme may require the amount due to a nominee to be paid only as a deposit in a savings bank account in the nominee's nameCorrect
  2. BThe Fund vests in the employer, who pays the nominee in cash
  3. CThe Fund vests in the Central Government, and the amount must be paid to the nominee by bearer cheque
  4. DThe Fund vests in the State Government, and the nominee receives the amount through the employer

Explanation

Section 6C(5) vests the Insurance Fund in the Central Board, to be administered as the scheme specifies. Schedule IV item 7 lets the scheme provide that the amount due to a nominee or family member is not paid otherwise than as a deposit in a savings bank account in that person's name. The other options contradict these provisions.

Did you get it right without looking?

One question tells you little. A timed set on Employees Provident Fund and Miscellaneous Provisions Act, 1952 shows your real accuracy, how long you take and where you lose marks.

Practise Employees Provident Fund and Miscellaneous Provisions Act, 1952Free diagnostic mock

More Employees Provident Fund and Miscellaneous Provisions Act, 1952 questions