EDLI

 

The Employees’ Deposit Linked Insurance Scheme(EDLI) is an insurance cover provided by the Employees’ Provident Fund Organization (EPFO).

 

A nominee or legal heir of an active member of EPFO gets a lump sum payment of up to Rs. 7 Lakhs in case of death of the member during the service period. All organizations covered under Employees’ Provident Fund (EPF) and Miscellaneous Provisions Act, 1952 get enrolled for EDLI automatically.

 

This scheme works in combination with EPF and EPS.

 

 

EDLI ELIGIBILITY

Beneficiaries of employees who are working in organizations enrolled under the EPF scheme are eligible to get the EDLI scheme benefits.

 

 

They get covered even if they shift jobs and work for another employer covered by the EDLI scheme before they complete one year of service.

 

 

EDLI CALCULATION:

 

For instance, suppose the average salary for the preceding 12 months, if the employee is at wage ceiling levels, is ₹15,000. The average salary will then be multiplied by 35 times, i.e., ₹15,000 x 35 = ₹5.25 lakh (Previously, it was 30 times = ₹4.5 lakh).

 

Note that ₹15,000 is the ceiling under the EDLI scheme for the purpose of this calculation even if your basic salary exceeds this amount.

 

In addition to the above, 50% of the average balance in the provident fund account of the member during the preceding 12 months, subject to a ceiling limit of ₹1.75 lakh (previously it was ₹1.5 lakh), is also paid to the beneficiary family. Hence, the maximum benefit paid will be ₹5.25 lakh + ₹1.75 lakh = ₹7 lakh.

 

 

 

The insurance amount that the heirs of a deceased member get is calculated as 35 times the average monthly salary in the last 12 months of employment.

 

The maximum average monthly salary of an employee is capped at Rs. 15,000

 

So, 35 times the salary comes to be around to be 35 x ₹ 15,000 = Rs. 5,25,000

 

A bonus amount of up to Rs. 1,75,000 is also paid to the claimant under this scheme

 

Thus, the total amount payable under this scheme to the beneficiary is Rs. 7,00,000

 

 

CLAIM PROCESS

You must first know that during employment, the employee files the PF nomination form (Form 2) with the employer, and it is those nominees who are beneficiaries in the event of the death of the employee.

 

“Upon the death of the employee, each of the nominees needs to make a claim of the PF, pension withdrawal and EDLI claim in the composite claim form instead of filing three forms separately (viz. Form 20 for PF withdrawal, Form 10-D for pension claim and Form 5-IF for EDLI)

 

 

Documents Required for EDLI

The claimant has to submit the following documents along with the Form 5 IF to get the amount disbursed under the EDLI scheme:

 

Death Certificate of the member

Guardianship certificate if the claim is filed on behalf of a minor family member/nominee/legal heir by a person other than the natural guardian.

Succession certificate in case of a claim by the legal heir.

Copy of a cancelled cheque of the bank account in which payment is opted.

In case the member was last employed under an establishment exempted under the EPF Scheme 1952, the employer of such establishment should furnish the PF details of last 12 months under the Certificate part and also send an attested copy of the Member’s Nomination Form