EPFO News : The Employees’ Provident Fund Organisation (EPFO) has rolled out a significant financial benefit for salaried employees under its Employees’ Deposit Linked Insurance (EDLI) Scheme. With a maximum insurance cover of up to ₹7 lakh, this scheme acts as a safety net for the families of EPFO members in case of the member’s untimely death during the period of active service. Understanding the eligibility, claim process, and benefits under this scheme is crucial for all EPF members.
EPFO News : What is the EDLI Scheme Under EPFO?
The Employees’ Deposit Linked Insurance (EDLI) Scheme is a social security scheme that provides life insurance benefits to employees enrolled in the EPF. Managed by the EPFO, this scheme ensures financial support to the nominee or legal heir in the event of the employee’s death during their employment period.
Key Features of EDLI Scheme
- Insurance coverage without any additional premium
- Automatically applicable to all EPF members
- Maximum benefit extended up to ₹7 lakh
- No minimum service period required
- Death must occur while the employee is in active service
Who is Eligible to Get ₹7 Lakh Insurance?
Not every employee is entitled to the maximum ₹7 lakh. The insurance amount depends on the employee’s last drawn salary and the number of months of salary considered for the calculation. However, eligibility is broadly defined under the scheme.
Eligibility Criteria
- The deceased employee must have been an active EPF member at the time of death.
- Employer must have been depositing contributions under EPF and EDLI regularly.
- The death should have occurred while the employee was in active service, not after retirement or job resignation.
How is the EDLI Insurance Amount Calculated?
The calculation of the EDLI benefit is based on the average monthly salary (basic + DA) of the last 12 months. Let’s break it down through the table below.
EDLI Insurance Benefit Calculation Table
| Particulars | Details |
|---|---|
| Maximum insurance amount | ₹7,00,000 |
| Minimum insurance amount | ₹2,50,000 |
| Salary considered | Basic + Dearness Allowance |
| Max salary for calculation | ₹15,000/month |
| Multiplier used for average salary | 35 times |
| Additional bonus | ₹1,75,000 |
| Sample calculation (for ₹15,000 salary) | ₹15,000 x 35 + ₹1,75,000 = ₹7,00,000 |
| Tenure requirement | No minimum tenure required |
see more : LIC’s Lifetime Pension Scheme
Step-by-Step Process to Claim EDLI Insurance
The claim process can be initiated by the nominee, legal heir, or family member of the deceased. Here is the step-by-step guide:
Documents Required
- Duly filled Form 5IF
- Death Certificate of the EPF member
- Nominee’s identity proof
- Copy of cancelled cheque or bank passbook
- EPF account details of the deceased
- Employer’s certification
Claim Procedure
- Download and fill Form 5IF from the EPFO website.
- Attach the required documents as mentioned above.
- Submit the form to the regional EPFO office via employer or directly.
- The EPFO verifies the claim and releases the amount to the nominee’s bank account.
Time Taken for Processing
- Claim is usually processed within 15 to 30 days from the date of submission, provided all documents are in order.
Comparison of EDLI with Other Insurance Schemes
Here is a comparative overview of EDLI with other government-linked insurance schemes:
| Feature | EDLI Scheme | PM Jeevan Jyoti Bima | PM Suraksha Bima |
|---|---|---|---|
| Insurance Amount | Up to ₹7 lakh | ₹2 lakh | ₹2 lakh |
| Annual Premium | NIL | ₹330 | ₹12 |
| Eligibility | EPF Members | Bank Account Holders | Bank Account Holders |
| Employer Contribution | Yes (via EPF) | No | No |
| Application Process | Via Employer/EPFO | Via Bank | Via Bank |
| Coverage Period | During employment | 1 year (renewable) | 1 year (renewable) |
Benefits of EDLI Scheme for Employees
The EDLI Scheme has several advantages, especially for those working in the organized sector.
Major Benefits
- Free of cost insurance coverage up to ₹7 lakh
- Financial relief to family in case of death
- No need for separate registration – auto-enrolled via EPF
- Quick claim settlement through EPFO
- Security to dependents of employees with lower income
Important Points to Remember
- The EDLI benefit can be claimed even if the employer hasn’t opted for a private insurance policy, as EDLI is a mandatory provision under EPFO.
- If the employee is working with multiple employers during the past 12 months, the average salary is computed considering all salaries.
- The EDLI benefit is over and above any other insurance the employee might have.
The EPFO’s EDLI scheme offering up to ₹7 lakh as insurance coverage is a crucial social security measure for the workforce. It ensures that employees’ families are not left financially vulnerable in the unfortunate event of the employee’s demise. All salaried individuals covered under EPF should be aware of this benefit and ensure that their nomination details are up to date to avoid complications during claims.
This article is intended for general informational purposes only. For official rules and claim submission, please refer to the EPFO official website or contact the nearest EPFO office.
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