The Employees’ Deposit Linked Insurance (EDLI) Scheme is an insurance cover provided by the Employees’ Provident Fund Organization (EPFO) of India. The EDLI scheme was launched in 1976 and covers all organisations registered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952.
Applicability:
It is applicable to all employees who are part of the Employees’ Provident Fund (EPF) and provides a lump-sum payment to the beneficiaries in case of the death of the employee during the period of service.
EPFO provides you Rs 7 lakh insurance cover without paying any premium?
The Employees’ Deposit Linked Insurance (EDLI) scheme, administered by the Employees’ Provident Fund Organization (EPFO), does indeed provide insurance coverage of up to ₹7 lakh. While employees themselves do not directly pay a premium for this insurance, contributions are made by employers on behalf of their employees.
There is no need for the employees to contribute to EDLI. Their contribution is required only for EPF. EPFO can provide up to Rs 7 lakh in insurance for family members/nominee/legal heir if the active member dies midway through their service.
This arrangement ensures that employees receive life insurance benefits without any additional cost to them, providing financial security to their families in case of their untimely death.
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