Tag: EDLI SCHEME

EPFO’S EDLI SCHEME NOW OFFERS RS 7 LAKH INSURANCE COVERAGE

Millions of Employees’ Provident Fund (EPF) subscribers across India are now entitled to a maximum insurance benefit of Rs 7 lakh under the enhanced Employees’ Deposit Linked Insurance (EDLI) scheme, administered by the Employees’ Provident Fund Organisation (EPFO). This significant increase in coverage aims to provide greater financial security to the families of EPF members in the unfortunate event of their death during service.

The EDLI scheme, a crucial component of the EPFO’s social security framework, has undergone key revisions to bolster its effectiveness and accessibility. These changes reflect the EPFO’s commitment to ensuring comprehensive protection for its vast membership.

Key Enhancements:

  • Increased Maximum Benefit: The maximum insurance coverage under the EDLI scheme has been raised to Rs 7 lakh, offering a substantial financial safety net for bereaved families.
  • Guaranteed Minimum Benefit: The scheme now guarantees a minimum benefit of Rs 50,000, ensuring that even families of those with shorter service periods receive meaningful support. This is applicable if death occurs within 12 months of employment.
  • Relaxation of Service Continuity Rules: To address the challenges faced by individuals transitioning between jobs, the EPFO has relaxed the service continuity rules. A break of up to two months between employments is now considered as continuous service, preventing families from being unfairly disqualified from receiving benefits.
  • Non-contributory period coverage: Changes have been made to allow death benefits to be paid out to families even if the deceased had a non-contributory period before their death, as long as the death occurred within 6 months of the last contribution.

These enhancements to the EDLI scheme are expected to have a significant positive impact on the lives of millions of EPF subscribers and their families. By increasing the maximum benefit and providing a guaranteed minimum, the EPFO has strengthened the financial safety net for those who rely on the scheme.

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Salient Features of Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976

Salient Features of Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976.

  • Maximum assured benefit up to Rs. 7 lakh paid to nominee or legal heir of EPF member, if death occurs while in service.
  • Minimum assurance benefit of Rs 2.5 lakh, if deceased member was in continuous employment for 12 months prior to his/her death.
  • Minimal contribution by employer @ 0.5% of employees’ monthly wages, up to wage ceiling of Rs. 15,000.
  • No contribution paid by employee.
  • Auto enrollment of PF members in EDLI Scheme.
  • Benefit directly credited to bank account of nominee or legal heir.

EDLI Calculation

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

EDLI Form 5 IF

EDLI Form 5 IF is filled by the nominees, heirs or family members of the member after his death to claim the insurance amount under EDLI Scheme. The EDLI claim form has to be filled separately by each claimant. In case of a minor claimant, the guardian has to fill the form on his behalf. In case of more than one minor where the guardian is the same, a single form has to be filled by the guardian.

The form has to be filled offline and the employer has to furnish the certificate mentioning the date of death of the member. The mode of fund transfer has to be mentioned as well.

The EDLI claim 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.

How to Claim EDLI Benefits

  • Form 5 IF has to be filled to get the insurance benefits after the death of the member
  • The member should have been (at the time of his death), an active contributor to the EPF scheme
  • The benefits can be claimed by the nominee of the member
  • In case no nominee is declared, the surviving family members will be eligible for claiming the benefits. Family under EPS is defined as spouse, male children (up to 25 years), unmarried daughters.
  • If there are no surviving family members, the insurance benefits can be claimed by the legal heir of the deceased member
  • The claim form has to be signed and certified by the employer
  • In case there is no employer, the form has to be attested by any one of the following:
    • Gazetted Officer
    • Magistrate
    • President of Village Panchayat
    • Chairman / Secretary / Member of Municipal or District Local Board
    • Postmaster or Sub Postmaster
    • MP or MLA
    • Member of CBT or Regional Committee of EPF
    • Bank Manager (of the bank in which the account was maintained
  • Form 5 IF can be filled along with Form 20 (EPF withdrawal claim in case of the deceased member) and Form 10C/Form10D to claim benefits of all three schemes (EPF, EPS and EDLI) in one go.

Maximum assurance benefit payable under EDLI Scheme [Notification]

File No. EDLI/Committee-Exem./Extension/2019

EMPLOYEES’ PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR & EMPLOYMENT, GOVERNMENT OF INDIA
Head Office
Bhavishya Nidhi Bhawan, 14, Bhikaiji cama Place, New Delhi – 110066
website : http://www.epfindia.gov.in, http://www.epfindia.nic.in

E-File No: 27058

Date:29.04.2021

To,

All ACC (Zones)

All RPFC (in Charge of ROs)

Subject: Gazette Notification No. GSR 299(E) dated 28.04.2021 – Reg.

Madam/Sir,

Please find enclosed a copy of above mentioned notification issued by the Ministry of Labour & Employment amending the Employees’ Deposit-Linked Insurance Scheme, 1976.

2. The said notification provides for the following :

(i) The maximum assurance benefit payable under paragraph 22(3) of EDLI Scheme has been enhanced to Rs. 7 lakh from earlier maximum benefit of 6 lakh (Under para 22(3) of the scheme, the salary multiple shall be 35).

ii) The minimum assurance benefit payable under paragraph 22(3) of the EDLI Scheme has been fixed as 2.50 lakh w.e.f. 15.02.2020 (i.e. with effect from the date of lapse of said benefit).

(iii) The benefit payable under paragraph 22(3) of EDLI Scheme shall be extended to such beneficiaries where the deceased employee was a member of the Fund or a provident fund exempted under Section 17 of the EPF & MP Act aid was ii employment for a continuous period of 12 months preceding the month in which he died, irrespective of change of establishment during the said period.

(iv) Under paragraph 28(4) of EDLI Scheme, the power to grant exemption to a class of employees from the provisions of the scheme has been delegated to ACC (Zone).

(v) The monetary fie payable under paragraph 29 of EDLI Scheme has been enhanced to 25,000.

3. The provisions as mentioned ii sub-paragraph (i), (ii) & (iii) above shall remain in force for a period of three years from their date of publication in the Official Gazette.

4. It is requested to bring above scheme amendments to the notice of all employers as well as employees covered under your jurisdiction through appropriate modes of publicity.

5. It also intimated that all such proposals for grant of exemption from EDLI Scheme, 1976 that may have been forwarded to this office are required to be re- examined by concerned offices in light of above amendment for further n.a. In the pending exemption proposals where the establishment may have sought exemption for a “class of employees”, where such class may be regular employees of the establishment or any other such defined class, appropriate action for grant of exemption may be taken in accordance with relevant directions issued from time to time.

(This issues with the approval of ACC(HQ)(Pension))

Yours sincerely,

[Kartikey Singh]
Regional PF Commissioner-I (Pension)