Employees Deposit Linked Insurance Scheme is helpful for Covid suffered family.

If you know anyone who has passed away due to Covid-19 and was an employee under private sector, then their nominee/legal heir may be eligible to receive an amount up to ₹7 lakhs under the Employees Deposit Linked Insurance (EDLI) scheme. 

EDLI is an insurance cover provided by the EPFO (Employees Provident Fund Organization) for private sector salaried employees. To extend the benefits of life insurance to private sector employees, the government has introduced the Employees Deposit Linked Insurance Scheme (EDLI) in 1976. You may share this information with your friends and acquaintances.

What is scheme

Employees Deposit Linked Insurance Scheme or EDLI is an insurance cover provided by the EPFO (Employees Provident Fund Organization) for private sector salaried employees. The registered nominee receives a lump-sum payment in the event of the death of the person insured, during the period of the service. EDLI applies to all organizations registered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. All such organizations must subscribe to this scheme and offer life insurance benefits to their employees. This scheme works in combination with EPF and EPS. The extent of the benefit is decided by the last drawn salary of the employee.

Term & Condition

• 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. Vishwanath B.G., senior consultant, Mercer, said, “The major amendment to the scheme is continuous service of one year not restricted to one establishment. Earlier, 12 months’ service was applicable under one establishment."
• EDLI applies to all employees with a basic salary under Rs. 15,000/- per month. If the basic salary goes above Rs. 15,000 per month, the maximum benefit is capped at Rs. 6,00,000/-. With effect from 28.04.2021, the EPFO has increased the maximum benefit to Rs.7 lakh.
• Organizations having more than 20 employees should opt for the EDLI scheme.

Documents required ?

• To process the claim under EDLI, the following documents are to be submitted by the claimant: –
• Duly completed Form 5 IF
• Death Certificate of the insured person.
• Succession Certificate in case the legal heir files the claim.
• Guardianship Certificate if the claim is filed on behalf of a minor by a person other than the natural guardian.
• Copy of cancelled cheque for the account in which the payment is to be received.

How to claim ?

The process to be followed by the nominee or claimant to receive the amount under EDLI is as follows:  

• The benefits can be claimed by the nominee specified by the insured person. If no nominee was registered, then the family members or legal heirs can apply for the same.
• The deceased person should have been an active contributor to the EPF scheme at the time of his/her death.
• EDLI Form 5 IF has to be duly completed and submitted by the claimant.
• The claim form has to be signed and certified by the employer.
• If there is no employer or the signature of the employer cannot be obtained, the form must be attested by any of the following:  

1. Bank manager (in whose branch the account was maintained)
2. Local MP or MLA
3. Gazetted Officer
4. Magistrate
5. Member/Chairman/Secretary of Local Municipal Board
6. Post Master or Sub-Postmaster
7. Member of the regional committee of EPF or CBT

• The claimant must submit all the documents along with the completed form with the regional EPF Commissioner’s Office for processing of the claim.
• The claimant can also submit Form 20 (for EPF withdrawal claim) as well as Form 10C/D to claim all the benefits under the three schemes, EPF, EPS and EDLI)
• Any additional documents required must be furnished at the earliest to process the claim.
• Once all the documents are provided and the claim is accepted, the EPF commissioner must settle the claim within 30 days from the receipt of the claim. Otherwise, the claimant is entitled to interest @12% p.a. Till the date of actual disbursal.

Reference URL : epfindia.gov.in

Reference Video : https://youtu.be/eiXQgCq24H0

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