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 beneficiary in case of the employee's death due to natural causes, illness, or accident.
Unlike some other insurances such as workmen compensation or group personal accident which are restricted to incidents in the workplace, EDLI's cover is 24/7. The cover is worldwide and the nominee is paid the assured amount irrespective of the place and time of death of the employees.
There is no threshold of minimum years of service to avail EDLI benefit. All employees, irrespective of their designation, can be insured under an EDLI policy. Every employee who is a member of the provident fund can be covered under the EDLI scheme. Also, this scheme is transferable with jobs.
Claim settlement is fast with simple processes. Turnaround times are regulated by the IRDAI. Any delays can be escalated to us using our mobile app ‘Notify’ or the customer service numbers. We ensure that the documentation is complete and the claim is processed faster.
EPFO introduced the EDLI scheme in 1976 with the aim of providing insurance benefits to its members. The primary objective of the scheme is to offer financial support to the member's family in the event of their sudden demise. Unlike other insurance schemes, there are no exclusions under the EDLI scheme, and all members are eligible for coverage. The amount of insurance coverage provided under the scheme is based on the member's salary in the 12 months preceding their death.
The coverage is derived based on monthly basic salary and average PF balance of preceding 12 months. It is calculated as 35 times the basic monthly salary (capped at Rs.15000).
The EDLI scheme is a crucial financial safety net for the dependents of the members in the event of their sudden demise. It 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.
The Employees' Deposit Linked Insurance Scheme (EDLI) is a group insurance program offered by the Employees' Provident Fund Organisation (EPFO) in India. All members of the EPFO, including organized sector employees who contribute to the Employees' Provident Fund (EPF), receive life insurance coverage through this scheme.
The primary goal of the EDLI scheme is to provide financial security to the family of the deceased member in the event of an untimely death. Employers with more than 10 employees are required to participate in the program, and the employer pays the premium. The coverage provided by the EDLI scheme is linked to the member's EPF balance. The sum assured under the scheme is calculated by multiplying 35 with the average monthly basic salary (with capping of 15000/month) and average of PF balance of last 12 months (with capping of 1.75 Lakhs),12 months preceding their death. The minimum sum assured is Rs. 2.5 lakhs, and the maximum is Rs. 7 lakhs.
The EDLI scheme features include;
The EDLI scheme's contribution is mandatory for all employers with more than 10 employees and is a small percentage of the employee's basic salary. The contribution made by the employer is deposited into the EDLI fund, which provides life insurance coverage to all EPFO members, including organized sector employees who contribute to the Employees' Provident Fund (EPF).
|Basic Salary||Contribution towards EDLI|
|Up to Rs. 6,500||NIL|
|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 under the scheme is linked to the EPF balance of the member, and the coverage provided by the scheme is calculated as 35 times the average monthly balance in the EPF account of the member during the 12 months preceding their death.
The minimum sum assured under the scheme is Rs. 2.5 lakhs, and the maximum is Rs. 7 lakhs. Overall, the EDLI scheme's contribution is a valuable social security initiative that provides financial protection to the dependents of the members in case of their sudden demise.
The EPFO (Employees' Provident Fund Organisation) determines the amount of coverage for EDLI based on the monthly salary of the employee. Here is a breakdown of how the calculation is done:
In order to receive the benefits of the EDLI scheme, the employer is required to submit the EDLI claim form to the EPFO. The EDLI claim form is a document that must be completed by the nominee or legal heir of the deceased employee. The form asks for various details such as the employee's name, EPF account number, date of birth, date of death, cause of death, and information about the nominee/legal heir. Additionally, the form requires the bank account details of the nominee/legal heir, where the EDLI benefits will be deposited.
To complete the EDLI claim form, several documents must be provided, including the death certificate of the employee, the nominee/legal heir's identity proof and address proof, and a copy of the nominee/legal heir's bank passbook. These documents must be attested by a gazetted officer or the employer.
After the EDLI claim form and the necessary documents have been submitted to the EPFO, the claim will be processed. The EPFO will verify the information provided in the form and the documents submitted. Following this, the EDLI benefit will be deposited into the nominee/legal heir's bank account.
The EDLI claim form is a crucial document that enables the nominee/legal heir of a deceased employee to receive the benefits of the EDLI scheme. The form must be completed accurately and accompanied by the required documents to ensure that the EPFO processes the claim promptly.
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 make a claim under the EDLI (Employee's Deposit Linked Insurance) Scheme, certain documents need to be submitted to the EPFO (Employees' Provident Fund Organization) by the nominee or legal heir of the deceased employee. These documents are crucial to establish the eligibility of the claim and the authenticity of the claimant. The following are some of the necessary documents required for a claim under the EDLI Scheme:
All of the above documents need to be attested by a gazetted officer or the employer to be considered valid. Once these documents are submitted to the EPFO along with the claim form, the processing of the claim begins, and if approved, the EDLI benefit is deposited into the nominee/legal heir's bank account.
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