EDLI Insurance – Covid-19 pandemic has created havoc. Many people have lost their lives in COVID-19. No one can provide replacement of the loved ones but insurance can defiantly help in providing financial support to the family. EDLI (Employee’s Deposit Linked Insurance) is insurance scheme by EPFO. Nominee of deceased can get benefit of insurance in the range of 2.5 Lakh to 7 Lakh. The amount is in proportion of the basic salary. Earlier this benefit amount was 6 Lakh. Recently this insurance amount is increased to 7 Lakh. In this post, we will take a look at EDLI Insurance and its benefits.
What is EDLI Insurance?
EDLI (Employee’s Deposit Linked Insurance) is special insurance scheme provided by EPFO for the salaried employees. The nominee registered for EDLI scheme receive insured amount on the death of the person. This insurance claim is applicable irrespective of cause of death during working hours or non-working hours. The person should be in employment for a continuous period of 12 months preceding the month in which he/she died. The benefit amount is based on last drawn salary of the employee.
Also Read – How to check if Employer is depositing EPF amount with EPFO or not?
Key Features of EDLI Insurance scheme
Key features of EDLI Insurance scheme are given below.
- Employee need not to contribute any additional amount for this insurance. Only contribution in EPF is required every month.
- EDLI is applicable for the employee with basic salary under Rs.15000. Incase basic salary is above Rs.15000 the amount of insurance is maximum 7 Lakh.
- EDLI scheme is valid as long as person is active member of EPF.
- Additional bonus amount of 2.5 Lakh is applicable on the EDLI scheme.
- There is no exception of this policy. Insurance coverage is applicable to EPF member irrespective of person is on the job or off the job.
- In order to calculate amount basic salary is taken into account.
- Option is available for employer to opt out from this scheme in case they opt for high paying life insurance scheme for the employees.
EDLI Amount Calculation
EDLI claim amount = 30 x Basic Salary + 50% of average EPF balance in the diseased account
Maximum bonus amount 2.5 Lakh
E.g Basic Salary of Employee 15000
EDLI Claim Amount = 30 x 15000 + 250000 = 7 Lakh
Documents required for claim
You will need following documents in order to claim EDLI Insurance claim benefit.
- Death Certificate of the employee
- Copy of cancelled cheque of the bank account where claim amount should be credited
- Legal Heir or Succession certificate for making the claim
- Guardianship certificate incase claim is made on behalf of minor by individual who is not natural guardian.
- Dully filled Form 5 IF
How to claim Insurance benefit under EDLI?
On the death of the person covered under EDLI this claim can be filed by nominee or legal hire. Form 5 IF needs to be filed by the nominee.
Form 5 IF can be downloaded from EFP site. The form needs to be attested by the employer of deceased. In case nominee is unable to get signature of employer the form should get attested by local MP or MLA, Gazetted officer, post master or sub post master.
The claimant needs to submit all required document along with claim form to EPFO office for the processing of the claim. In case any additional documents are required it is to be submitted to EPFO office at the earliest to process the claim. The claimant can also submit Form 20 (EPF withdrawal form) and Form 10 C/D to claim other benefits.
Once all document and claim form is submitted it will take 30 days to process the claim.
EDLI Insurance is offered as additional security measures to the family member of deceased person. However, many people are not aware of EDLI scheme and its benefits. This benefit is also applicable in case person dies under Covid-19. If you are legal heir of the deceased person covered under EDLI you should file claim.