Sche.1 Short title, commencement and application

       (1) The Scheme may be called the Employees' Deposit-Linked Insurance Scheme, 1976.
       (2) The provisions of this Scheme shall come into force on the 1st day of August, 1976.
       (3) Subject to the provisions of sub-section (2) of Sec. 16 and Sec. 17(2A) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, this Scheme shall apply to the employees of all factories and other establishments to which the said Act applies provided that the provisions of this Scheme shall not apply to tea factories in the State of Assam.

Sche.2 Definition

       In this Scheme, unless the context otherwise requires:--
       (a) "Act" means the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952);
       (b) "Assurance benefit" means a payment linked to the average balance in the Provident Fund Account of an employee, payable to a person belonging to his family or otherwise entitled to it in the event of death of the employee while being a member of the Fund.
       (c) All other words and expressions used herein but not defined shall have the meaning respectively assigned to them in the Act or the Employees' Provident Funds Scheme, 1952.

Sche.3 Administration of the Scheme

This scheme shall be administered by the Central Board constituted under Sec. 5-A of the Act.

Sche.4 Regional Committee

       The Regional Committee set up under paragraph 4 of the Employees' Provident Fund Scheme, 1952, shall advise the Central Board on such matters, in relation to the administration of this Scheme, as the Central Board may refer to it from time to time and in particular, on:--
       (a) progress of recovery of contributions, under this Scheme, both from factories and establishments exempted under Sec. 17 of Act and other factories and establishments covered under the Act; and
       (b) expeditious disposal of prosecutions.

Sche.5 Delegation of power by the Central Board

       (1) The Central Board may, by a resolution, empower its Chairman or the Commissioner or both, to sanction expenditure, subject to such limits as may be specified in the resolution, on contingencies, supplies and purchases of articles required for administering the Insurance Fund subject to financial provision in the budget, where such expenditure is beyond the limits upto which the Chairman or the Commissioner is authorised to sanction expenditure on any single item.
       (2) The Central Board may also by a resolution empower its Chairman or the Commissioner or both, to appoint such officers and employees other than those mentioned in sub-sections (2) and (3) of Sec. 5-D of the Act, as the Chairman or the Commissioner may consider necessary for the efficient administration of this Scheme.
       (3) All sanctions of expenditure made by the Chairman

Sche.6 Administrative and financial powers of the Commissioner

The Commissioner may, without reference to the Central Board, sanction expenditure on contingencies, supplies and services and purchase of articles required for administering the Insurance. Fund, subject to financial provision in the budget and subject to the limits upto which he may be authorised to sanction expenditure on any single item from time to time by the Central Board.

Sche.7 Contribution

       (1) The contribution payable by the employer and the Central Government under sub-section (2) and sub-section (3) of Sec. 6-C of the Act, shall be calculated on the basis of the basic wages, dearness allowance (including the cash value of any food concession) and retaining allowance, if any, actually drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis:
       Provided that where the monthly pay of an employee exceeds five thousand rupees, the contribution payable in respect of him by the employer and the Central Government shall be limited to the amounts payable on a monthly pay of six thousand five hundred rupees, including dearness allowance, retaining allowance (if any) and cash value of food concession.
       (2) Each contribution shall be calculated to nearest rupee, 50 paise or more to be counted as the near

Sche.8 Mode of payment of contribution

       (1) The contribution by the employer shall be remitted by him together with administrative charges at such rate as the Central Government may fix from time to time under sub-section (4) of Sec. 6C of the Act, to the Insurance Fund within fifteen days of the close of every month by a separate bank draft or cheque or by remittance in cash in such manner as may be specified in this behalf by the Commissioner. The cost of remittance, if any, shall be borne by the employer.
       (2) It shall be the responsibility of the employer to pay the contribution payable by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.
       (3) The Central Government shall credit its contribution to the Insurance Fund as soon as possible after the close of every financial year.
  

Sche.8(a) Recovery of damages for default in payment of any contribution

       1[(1) Where a employer makes default in the payment of any contribution to the Insurance Fund, or in the payment of any charges payable under any other provisions of the Act or the Scheme, the Central Provident Fund Commissioner or such officer as may be authorised by the Central Government by notification in the Official Gazette in this behalf, may recover from the employer by way of penalty, damages at the rates given in the table below:--
       TABLE
       S. No. Period of default Rates of damages (percentage of arrears per annum)
       (1) (2) (3)
       (a) Less than 2 months Five
       (b) Two months and above but less than four months Ten
       (c) Four months and above but less than six mo

Sche.8(b) Terms and conditions for reduction or waiver of damages

       The Central Board may reduce or waive the damages levied under Sec. 14B of the Act in relation to an establishment specified in the second proviso to Sec. 14B, subject to the following terms and conditions, namely:--
       (a) in case of a change of management including transfer of the undertaking to workers' Co-operative and in case of merger or amalgamation of the Sick Industrial Company with any other industrial company, complete waiver of damages may be allowed;
       (b) in cases, where the Board for Industrial and Financial Reconstruction, for reasons to be recorded in its Scheme, in this behalf recommends waiver of damages up to 100 per cent, may be allowed;
       (c) in other cases, depending on merits, reduction of damages up to 50 per cent may be allowed.

Sche.9 Employees contribution not to be deducted from the wages of the employees

Notwithstanding any contract to the contrary, the employer shall not be entitled to deduct the employer's contribution payable by him under this Scheme from the wages of the employees or to recover it from them in any other manner.

Sche.10 Duties of employers

       (1) Every employer shall send to the Commissioner, within fifteen days of the commencement of the Scheme, a consolidated return in such form as he may specify, of the employees who are entitled and required to become members of the Insurance Scheme showing, inter alia the Insurance Scheme Number, name, accumulations in the Insurance Scheme as at the end of the financial or accounting year preceding the date on which this Scheme comes into force together with certified copies of nomination executed by each employee under the rules of the Provident Fund of the Establishment.
       (1A) Every employer shall send to the Commissioner, within fifteen days of the close of each month, a return in Form 5 of the Employees' Provident Fund Scheme of the employees,--
       (a) qualifying to become members of the Insurance Fund, for the first time during precedin

Sche.11 Inspection of records and registers by the Commissioner or Inspector

Every employer shall, whenever the Commissioner or any other officer authorised by him in this behalf or an Inspector so requires, produce before him the records and other registers then in his possession, for inspection.

Sche.12 Supply of forms to employers

The Commissioner shall supply to employer free of charge, on demand, forms referred to in this Scheme to the extent absolutely necessary.

Sche.13 Administration account.

The contributions received from the employers and the Central Government under sub-section (4) of Sec. 6C of the Act shall be credited to a separate account called "The Insurance Fund Central Administration Account" and all expenses in connection with the Administration of this Scheme, other than the cost of benefits provided by or under this Scheme, shall be met out of this account.

Sche.14 Deposit-linked insurance fund account

The amount received as the employer's contribution and also the Central Government's contribution to the Insurance Fund under sub-sections (2) and (3) of Sec. 6-C shall be credited to an account called the "Deposit-linked Insurance Fund Account", and all expenses towards the cost of any benefits provided by or under the Scheme shall be met out of this account.

Sche.15 Investment of moneys belonging to the insurance fund

       (1) All moneys standing to the credit of the Insurance Fund as on 31st March, 1997 shall be kept in deposit with the Central Government shall allow interest at a rate not less than 8-1/2% per annum.
       (2) The moneys credited as contributions to the Insurance Fund on and from the 1st day of April, 1997 shall be invested as per the investment pattern notified under paragraph 52 of the Employees' Provident Funds Scheme, 1952].

Sche.16 Interest

All interest, rent and other income realised and net profits or losses, if any, from the sale or investments, not including therein the transaction of the Insurance Fund Central Administration Account, shall be credited or debited as the case may be to the Insurance Fund.

Sche.17 Disposal of the insurance fund

       (1) Subject to the provisions of the Act and of this Scheme, the Insurance Fund, not including therein the Insurance Fund Central Administration Account, shall not, except with previous sanction of the Central Board, be expended for any purpose other than the payment of the benefits in accordance with the provisions of this Scheme.
       (2) The Insurance Fund shall be operated upon by such officers as may be authorised in this behalf by the Central Board.

Sche.18 Expenses of administration

All expenses relating to the administration of this Scheme including the expenses incurred on Regional Committee shall be met from the "Insurance Fund Central Administration Account".

Sche.19 Forms and manner of maintenance of accounts

The Central Board shall maintain the accounts of its income and expenditure including its administrative account in Form 1 and Form 2 and the balance-sheet in Form 3. The accounts shall be prepared for the financial year and the books shall be balanced on the thirty-first March each year.

Sche.20 Audit

       (1) The accounts of the Insurance Fund, including the Insurance Fund Central Administration Account, shall be audited in accordance with the instructions issued by the Central Government in consultation with the Comptroller and Auditor-General of India.
       (2) The charges on account of audit shall be paid out of the Insurance Fund Central Administrative Account.

Sche.21 Budget

       (1) The Commissioner shall place before the Central Board each year before the first fortnight of February of budget showing separately the probable receipts from the contributions and from the levy of administrative charges and the expenditure which is proposed to be incurred the following financial year. The budget as approved by the Central Board shall be submitted for sanction to the Central Government within a month of its being placed before the Central Board.
       (2) The Central Government may make such modification in the budget as it considers desirable before sanctioning it.
       (3) The Commissioner may at any time during the year make budgetary reappropriation of funds sanctioned in the budget by the Central Government provided that--
       (i) the total amount sanctioned in the budget by the Cen

Sche.22 Scales of assurance benefits and minimum average balance to be maintained by an employee

       2[(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 fifty thousand, the amount payable shall be rupees fifty thousand plus 40% of the amount in excess of rupees fifty thousand subject to a ceiling of rupees one lakh.]
       [Explanation 1.-- For the purpose of determining the average balance in the Fund or in the provident fund exempted under Sec. 17 of the Act, as the case

Sche.22(a) .

       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, who was in the employment of the same establishment for a continuous period of twelve months, preceding the month in which he died, the persons entitled to receive the provident fund accumulations of the deceased shall, in addition to such accumulations be paid an amount, equal to :--
       (i) the average monthly wages drawn (subject to a maximum of rupees six thousand five hundred), during the twelve months preceding the month in which he died, multiplied by twenty times or;
       (ii) the amount of benefit under sub-paragraph (1), whichever is higher."
       "Explanation.--In the case of a part-time employee who is a member of the Fund or of a provident fund exempted under

Sche.23 Assurance benefit to whom payable

       (1) The nomination made by an employee under the Employees' Provident Funds Scheme, 1952 or under the Provident Fund exempted under Sec. 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 Sec. 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 dece

Sche.24 Assurance amountHow to be paid

       (1) The nominee or nominees or other claimants shall send a written application to the Commissioner through the employer in such forms as the Commissioner may specify, to claim payment under this Scheme.
       (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 payments is to be made,
       (i) by postal money order, or
       (ii) by deposit in the payee's bank account in any Scheduled Bank or any Co-operative Bank (including the Urban Co-operative Banks or any post office, or
      &nbs

Sche.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.

Sche.26 Annual report on the working of this Scheme

The Central Board shall approve before the tenth of December and submit to the Central Government before the twentieth of December each year, a report on the working of the Scheme during the previous financial year.

Sche.27 .

27. [***]

Sche.28 Special provisions relating to coal mines in respect of which applications are received for exemption from the provisions of this Scheme

       (1) (i) A Commissioner may by order and subject to such conditions as may be specified in this order exempt from the operation of all or any of the provisions of the Scheme an employee to whom the Scheme applies on receipt of application from such an employee:
       Provided that such an employee is without making any separate contribution or payment of premium, in enjoyment of benefits in the nature of like assurance, whether linked to their deposits in Provident Funds or not, according to the rules of the factory or other establishment and such benefits are more favourable than the benefits provided under this Scheme.
       (ii) Where an employee is exempted, as aforesaid, the employer shall in respect of such employee maintain such accounts, submit such returns, provide such facilities for inspection as the Commissioner may direct and pay such in

Sche.29 Punishment for failure to submit returns etc

       If any person,--
       (a) deducts or attempts to deduct from the wages or other remuneration of a member the whole or any part of the employer's contribution, or
       (b) fails or refuses to submit any return, statement or other documents required by this Scheme or submits a false return, statement or other documents, or makes a false declaration, or
       (c) obstructs any Inspector or other official appointed under the Act or this Scheme in the discharge of his duties or fails to produce any record for inspection by such Inspector or other official; or
       (d) is guilty of contravention of or non-compliance with any other requirements of this Scheme, he shall be punishable with imprisonment which may extend to one year or with fine which may extend to four thousand r