The sum assured under the Group EDLI is higher than coverage provided by the EPFO. This scheme provides financial security to the employee's family by providing a lump sum amount to the claimant. The company undertakes this process if the employee dies because of natural causes, illness, or accident.
EDLI's coverage is different from insurances like workmen compensation or group personal accident. It provides 24/7 protection, not just limited to workplace incidents. The cover is worldwide, and the nominee receives the assured amount regardless of the place and time of the employees' death.
No threshold of minimum years of service to avail EDLI benefit. An EDLI policy can insure all employees, regardless of their designation. Every employee who is a member of the provident fund can avail coverage under the EDLI scheme. Moreover, this scheme is portable between jobs.
Claim settlement is fast with simple processes. The IRDAI regulates turnaround times. You can escalate any delays to us through our mobile app 'Notify' or by contacting our customer service numbers. We ensure completeness of documentation and expedite the claim processing for a faster resolution.
EPFO introduced the EDLI scheme in 1976 with the aim of providing insurance benefits to its members. Primary objective of scheme is to offer financial support to the member's family in event of their sudden demise. Unlike other insurance schemes, there are no exclusions under the EDLI scheme, and all members are eligible for coverage.
We calculate the amount of insurance coverage in the scheme based on the member's salary in the 12 months before their death. We calculate the coverage based on the monthly basic salary and average PF balance of the preceding 12 months. The computation is 35 times the basic average monthly salary, with a cap at Rs. 15,000.
The EDLI scheme is a crucial financial safety net for the dependents of the members in case of their sudden demise. This is an economical method for employers to provide life insurance coverage to their workers. The EDLI scheme is a significant social security initiative that offers life insurance coverage to EPFO members. It provides financial protection to the families of deceased members and is a beneficial perk for organized sector employees.
Employees' Deposit Linked Insurance Scheme is a group insurance program offered by Employees' Provident Fund Organisation (EPFO) in India. All members contributing to the Employees' Provident Fund (EPF) in organized sector receive life insurance coverage through this scheme.
The EDLI scheme aims to give financial security to the family of a member who dies suddenly. Employers with over 10 employees must engage in the program, and they are responsible for covering the premium costs. The EDLI scheme connects the coverage it offers to the member's EPF balance.
The scheme calculates the assured amount by multiplying 35 with average monthly basic salary (capped at 15000/month). Additionally, the calculation involves considering the average PF balance of the last 12 months (capped at 1.75 Lakhs). This process precedes the deaths of members for 12 months. The minimum sum assured is Rs.2.5 lakhs, and the maximum is Rs.7 lakhs.
The EDLI scheme features include:
Taking part in the EDLI scheme is mandatory for employers with over 10 employees. The contribution is a percentage of the employee's basic salary. The employer deposits their contribution into the EDLI fund. This fund provides life insurance coverage to EPFO members, including organized sector employees contributing to Employees' Provident Fund (EPF).
|Contribution towards EDLI
|Up to Rs. 6,500
|Above Rs. 6,500 up to Rs. 15,000
|0.5% of basic salary.
|Above Rs. 15,000
|Maximum contribution of Rs. 75/month
The sum assured is connected to the EPF balance of the member. The coverage is calculated by multiplying 35 with the average monthly balance in the EPF account. This calculation considers the 12 months preceding the member's death.
The minimum sum assured under the scheme is Rs.2.5 lakhs, and the maximum is Rs.7 lakhs. The EDLI scheme is a crucial social security measure. It ensures financial protection for members' dependents in case of unexpected demise.
EPFO (Employees' Provident Fund Organisation) determines the amount of coverage for EDLI based on monthly salary of the employee. The calculation breakdown is as follows:
The employer must submit the EDLI claim form to the EPFO to receive the benefits of the EDLI scheme. The EDLI claim form is a document that the nominee or legal heir of the deceased employee needs to fill out. The form needs information like employee's name, EPF account number, date of birth and death, cause of death, and nominee or legal heir details.
Moreover, form necessitates the bank account details of nominee or legal heir, where EDLI benefits will be transferred. To complete the EDLI claim form, gather essential documents. Like the employee's death certificate, the nominee/legal heir's ID and address proof, and a copy of their bank passbook. These documents should be attested by either a gazetted officer or the employer.
Upon submission of the EDLI claim form and required documents to the EPFO, the claim will undergo processing. The EPFO will verify the information provided in the form and the documents submitted. Afterward, the EDLI benefit will be deposited into the bank account of the nominee or legal heir.
The EDLI claim form is essential for the nominee/legal heir of a deceased employee to claim benefits. To ensure the EPFO processes it promptly, accurately fill out the form and provide the required documents.
If you are a nominee or legal heir of a deceased employee who wants to claim benefits under the EDLI scheme, follow these steps:
An employee can be eligible for the EDLI Scheme if:
To claim benefits under the Employee's Deposit Linked Insurance (EDLI) Scheme. The nominee or legal heir of deceased employee must submit specific documents to the Employees' Provident Fund Organization (EPFO). These documents are crucial to establish the ability of the claim and the genuineness of the claimant. The following are some of the necessary documents required for a claim under the EDLI Scheme:
Once the nominee/legal heir submits these documents along with the claim form to EPFO, the claim processing initiates. After approval, the EDLI benefit is deposited into the bank account of the nominee or legal heir.
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