EDLI – Employees Deposit Linked Insurance Scheme Benefits, Eligibility

EDLI Scheme

For salaried workers in the private sector who are EPFO members, the Employees Deposit Linked Insurance Scheme, or EDLI, is an insurance programme offered by the organisation. In 1976, the EDLI programme was introduced. In the case that the person insured (employee) passes away while the service is being rendered, the registered nominee is entitled to a lump sum payout.

What is EDLI Scheme ?

The government introduced the Employees Deposit Linked Insurance Scheme (EDLI) as an insurance programme in 1976. This programme was started with the intention of giving social security benefits to private sector workers whose employers did not typically offer them. The Employees Provident Fund Organisation (EPFO) now oversees and manages the EDLI programme, which offers term life insurance coverage for the duration of the employee’s membership.

EPF Interest Rate 2024-25

Benefits of Employees Deposit Linked Insurance Scheme 2024

Some of the key benefits of the EDLI Scheme are as follows:

  • Families of employees are provided with free insurance coverage under the EDLI plan in the case of the employee’s death while they are still employed.
  • The EDLI scheme does not have any exclusions. Every employee is therefore insured, regardless of their title or pay.
  • Although the company makes a little financial commitment to EDLI, the benefit paid under the programme is substantial and helps the bereaved employee’s family.
  • Should the employee pass away abroad, their family will still be entitled to the death benefit.
  • Life insurance payouts are guaranteed by the EDLI system, which is an employee welfare initiative supported by the government and employers.
  • The EDLI programme provides insurance coverage to workers and provides security for their families in the event of their death, which raises employee morale.

Features of EDLI Scheme 2024

Some of the key features and benefits of the EDLI Scheme are as follows:

  • All employees earning less than Rs. 15,000 per month are covered by EDLI. The maximum benefit is limited to Rs. 6 lakh if the base wage exceeds Rs. 15,000 per month. The EPFO has raised the maximum compensation to Rs. 7 lakh as of April 28, 2021.
  • Employee contributions to EDLI are not required. Their payment is just necessary for the EPF.
  • Up to a maximum of Rs 7 lakh, the claim amount under EDLI is 35 times the average monthly earnings over the previous 12 months.
  • A bonus of Rs. 1, 50,000/—is offered under the EDLI. The incentive has raised to Rs. 1.75 lakh as of April 28, 2021.
  • The minimum benefit amount was raised by the Ministry to Rs. 2.5 lakh in February 2018 and was good for two years. With retroactive effect from February 15, 2020, the EPFO has extended this minimum sum of Rs. 2.5 lakh.
  • The insurance that EDLI offers does not have any exclusions. The insured person is protected 24/7, anywhere in the globe.
  • Every company employing more than 20 people is required to register for EPF. As a result, the EDLI programme is immediately available to every employee who has an EPF account.
  • Although an employer may choose to choose a different group insurance plan, the benefits must be at least as good as those provided by EDLI.
  • Employers are required by the EDLI regulations to contribute 0.5% of the employee’s base wage, up to a maximum of Rs. 75 per month. In the event that no other group insurance plan exists, the monthly maximum contribution is limited to Rs. 15, 000.
  • The dearness allowance needs to be added to the base wage in all EDLI computations.

EPF Claim Status Check

Eligibility Criteria for Employees Deposit Linked Insurance Scheme 2024

The applicants applying for Employees Deposit Linked Insurance Scheme must fulfill the following eligibility criteria:

  • The base pay for employees is up to Rs. 15,000. The maximum benefit payable under the EDLI will be Rs. 7 lakhs in cases where the employee’s salary exceeds Rs. 15,000.
  • For the employee’s organisation to choose the EDLI scheme, there must be more than 20 employees.

Required Documents for EDLI Scheme

Some of the important documents required for EDLI Scheme are as follows:

  • Duly filled Form 5 IF
  • Insured Person’s Death Certificate
  • Succession Certificate in case the legal heir files the claim.
  • If a person other than the minor’s natural guardian files a claim on their behalf, they must provide a Guardianship Certificate.
  • A duplicate of the cancelled check for the account that will be funded.

How EDLI Scheme Benefits Can Be Claimed ?

  • The nominee or claimant must adhere to the following procedure in order to be eligible for payment under EDLI:
  • The covered person’s designated nominee may make a claim for the benefits.
  • Family members or legal heirs may apply if there was no nominee filed.
  • At the time of death, the departed individual ought to have been actively contributing to the EPF plan.
  • The claimant must properly fill out and submit EDLI Form 5 IF.
  • The employer must sign and certify the claim form.
  • The form must be attested by one of the following if the employer is absent or cannot be reached for their signature:
    • Bank manager (in whose branch the account was maintained)
    • Gazetted Officer
    • Local MP or MLA
    • Magistrate
    • Post Master or Sub-Postmaster
    • Member/Chairman/Secretary of Local Municipal Board
    • Member of the regional committee of EPF or CBT
  • For the claim to be processed, the claimant must deliver the completed form to the local EPF Commissioner’s office together with all supporting documentation.
  • In order to claim all benefits under the three schemes—EPF, EPS, and EDLI—the claimant may also submit Form 20 (for an EPF withdrawal claim) and Form 10C/10D.
  • To process the claim, any further paperwork needed must be sent as soon as possible.
  • The EPF commissioner is required to resolve the claim within 30 days after receiving it, provided that all required documentation is submitted and approved. If not, interest at a rate of 12% per year is due to the claimant until the actual disbursement date.

How the EDLI scheme’s claim amount is is calculated

An insurance payout is due to a member’s heirs upon their death. To calculate this amount, take the average monthly wage for the last 12 months of employment and multiply it by thirty. It is important to note that the highest pay that is taken into account in this computation is Rs. 5,000 per month.

FAQ’s

What is the Full Form of EDLI Scheme?

The full form of the EDLI Scheme is Employees’ Deposit Linked Insurance Scheme

Who Administers the Employees Deposit Linked Insurance Scheme?

The Employees’ Provident Fund Organisation (EPFO) is responsible for overseeing the EDLI

Under the Employees’ Deposit Linked Insurance Scheme (EDLI), is it possible for an employee to choose a higher coverage amount?

Since the EDLI is a fixed sum based on the employee’s basic earnings, dearness allowance, and retention allowance (if applicable), an employee cannot choose to have a larger coverage amount.

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