The Buyt Desk
Employee Deposit Linked Insurance Scheme (EDLI) is an insurance cover that covers every subscriber contributing to the Employee Provident Fund(EPFO). This scheme specifically benefits salaried employees of the private sector. In this scheme, employers make a minimum contribution of 0.5% of the employee’s monthly wage. It applies to all the employees earning less than Rs 15,000. If the employee’s salary is more than Rs 15,000 then the maximum benefit is capped at Rs 7 lakhs.
The employee does not have to contribute to the scheme for insurance cover. The complete details of the EDLI scheme are here:
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All the private sector employees registered in the EPF scheme automatically get enrolled in the EDLI scheme. In this case, EPF divides into three parts: provident fund, Employee pension scheme and EDLI.
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This insurance cover protects the insured round the clock all around the world.
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The EDLI gives the maximum benefit of Rs 7 Lakh. The minimum is Rs 2.50 Lakh.
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A bonus of Rs 2.50 lakh is available to the insured.
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Only the employer contributes to this scheme.
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The family members of eligible candidates get insurance benefits after the subcriber’s death.
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EDLI benefit can be availed only by legal heir, nominee and family member.
How is EDLI Claim Calculated?
The insured’s family will receive a lump sum amount based on the following formula-
12 months Average Monthly Salary(capped at Rs 15,000 pm x 30 + Bonus ( Rs 2.50 Lakh) = Rs 7 Lakh
The claim will not cross the upper cap of Rs 7 lakh as the salary that will be considered for EDLI claim is capped at Rs 15,000.
Who Can Claim The Benefit Of Insurance?
The employee receives all the insurance benefits. After his demise, the nominee receives all the scheme related benefits. The nomination of EPFO is applicable in this scheme also. If the person has not nominated anyone, his spouse, unmarried daughter and minor son get all the benefits.
The Process To Claim Insurance Benefit
In case of employee demise, the beneficiary/nominee can claim the insurance. For the insurance claim, the nominee/beneficiary has to fill the form 51F first. Then, get it attested by the employer. The applicant then has to submit the application form along with all supporting documents to the Commissioner.
The Commissioner then verifies all the documents and sanction the EDLI claim amount. The amount directly gets transferred to the beneficiary account after the sanction.
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Documents Required For Insurance Claim Other Than Form 51F.
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Employee death certificate.
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If the EDLI claim is made for a minor by an extended family member, the claimant must submit the guardianship certificate.
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If the legal heir of the employee is claiming the insurance, then the succession certificate is required.
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Details of bank account in which claim deposit will get transferred.
