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Articles 708 views June 11, 2021
Provided by the Employees’ Provident Fund Organization (EPFO), the Employees Deposit Linked Insurance (EDLI) Scheme is a life insurance cover for salaried individuals working in the private sector. This plan provides a lump sum benefit to the nominee or beneficiary if an insured person dies during the active service period. Under the EDLI scheme, the coverage amount can go up to INR 7 lakh (from April 28, 2021), which was INR 6 lakh earlier.
Employees Deposit Linked Insurance Schemes are available to all those individuals contributing to the provident fund as it works in combination with EPF and Employee Pension Scheme (EPS). With this scheme, the government wants to ensure financial protection to the family of the insured member who dies due to some unfortunate reasons.
Want to know more about the Employees Deposit Linked Insurance (EDLI) Scheme? On this page, we will talk about its different aspects such as features, calculation, required documents, etc. So, let’s start!
Table of Contents
We will be discussing key points related to the Employees Deposit Linked Insurance (EDLI) Scheme below. Please check!
Let’s calculate the coverage amount under the EDLI scheme if an insured person dies during his or her service period.
Suppose the average salary for the last 12 months is INR 15,000, which is also the maximum amount under the EDLI scheme for this calculator even if the basic salary is more than INR 15,000.
Now, the average salary will be multiplied by 35 times.
INR 15,000 x 35 = INR 5.25 lakh (previously, it was used to be 30 times = INR 4.5 lakh)
In addition to the above amount (INR 5.25 lakh), the nominee will also get 50% of the average balance in the PF account of the member during the last 12 months (up to INR 1.75 lakh).
So, the overall benefit amount will be INR 7 lakh (5.25 + 1.75).
As we told earlier, the benefits under the EDLI scheme can be claimed by the nominee (specified by the insured person). If there are no nominees, family members or legal heirs can apply for the same. Also, the insured person should be an active member of the EPF at the time of his or her death.
To claim the benefits under this scheme, you will need to follow the steps mentioned below.
Step 1: After the death of the insured person, complete the EDLI Form 5 IF and submit it. If the claimant is a minor, the guardian will need to fill the form on his/her behalf.
Step 2: This form should be signed and certified by the employer. If there is no employer, the following individuals can attest to the form.
Step 3: After successful certification, submit the form to the jurisdictional Regional Provident Fund Commissioner (RPFC) for processing the claim with a copy of the nomination made by the employee.
Step 4: Once all the documents have been submitted and the claim is accepted, the EPFO commissioner would settle the claim within 30 days from the receipt of the claim or 12% per interest will be charged till the date of disbursal.
The nominee or beneficiary will need the following documents to get the coverage amount under EDLI. Have a look!
Both employer and employee have to contribute to the three schemes run by EPFO. To know about the contribution, check the below table.
EPFO Scheme | Employee’s Contribution | Employer’s Contribution |
---|---|---|
EPF | 12% of basic salary + Dearness Allowance (DA) | 3.67% of basic salary + DA |
EPS | None | 8.33% of basic salary + DA (or INR 1,250) |
EDLI | None | 0.50% up to INR 75 |