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.
Employee Deposit Linked Insurance Scheme (EDLI) is an insurance cover linked to the employee provident fund. All the organizations registered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 must subscribe to EDLI and offer life insurance benefits to their employees. The insurance cover depends on the last drawn monthly basic salary of the employee before death.
The top 5 features of an EDLI are:
Both the employee and the employer make contributions for all the three schemes run by the EPFO. While the employee doesn’t directly pay any amount, it is deducted from his/her salary. Employees cannot choose which of the three schemes (EPF, EPS, EDLI) they want to contribute to but the schemes are transferable and the new employer pays for the scheme then.
The EDLI contribution of an employer under EPFO is 0.5%, subject to a maximum of INR75 monthly. And the contribution towards EDLI scheme bought under a life insurance company depends on the data and lives covered as provided by the corporate.
Below is the calculation of EDLI under the EPFO. The registered nominee gets
lump-sum payout and in case there is no nominee then the amount is transferred to
the legal heir of the deceased. The insurance amount that the nominee/heir of a
deceased member gets is calculated as 35 times the monthly basic salary of
employment capped at INR 15,000:
35 X INR 15,000 = INR 5,25,000
Additionally, 50% of the average balance in the provident fund account of the
member during the preceding 12 months capped at INR1,75,000 is also paid to the
So, INR 5,25,000 + INR 1,75,000 = INR 7,00,000, is the maximum capping of the payout under the EPO based EDLI scheme.
This plan is availed by companies for their employees who are members of a Provident Fund Scheme. In order to avail this plan, the minimum and maximum age restrictions are similar to Provident Fund Scheme.
Below is a list of people who are eligible to claim benefits after demise of an EDLI scheme member
Following documents are needed to avail group employee Deposit insurance (EDLI):
Group EDLI policy arises only in the case of death of a member of the group. To file the claim following process should be adopted:
The Employer has to submit the following documents to the insurer within 30 to 90 days (depending on the insurer):
Claims are paid to the nominee or legal heirs of the deceased member.
The following documents have to be submitted by the claimant for processing of claims under EDLI scheme:
Form 5 IF is an EPF form, to be filled by the nominee/heir of the deceased to claim the insurance amount under EDLI scheme. The form has to be filled offline, has to be individually filled by every claimant (filled by the guardian in case the claimant is minor), mode of fund transfer has to be mentioned and the employer has to furnish a death certificate mentioning the date of death of the member.
The filled form has to be submitted to the regional EPF Commissioner’s office along with the required document proofs. The claim has to be settled in 30 days and if the EPF commissioner is not able to settle the claim within 30 days, he will be liable to pay an interest of 12% per annum from the deadline date to the date of actual disbursal.
Claims can be rejected for various reasons. Below are the three primary reasons that can lead to a claim rejection:
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