EPFO Insurance Scheme: Check here what EDLI scheme is and how to claim death insurance.
The Employees’ Provident Fund Organisation (EPFO) raised the death insurance benefits for subscribers of its employees’ deposit-linked Insurance (EDLI) scheme amid the coronavirus pandemic in the country. The minimum death insurance has been increased to 2.5 lakh and the maximum to 7 lakh, from the earlier limits of 2 lakh and 6 lakh.
The insurance cover will be given to the family of the subscriber of the EDLI scheme if the subscriber dies while in employment. The benefit payable under the EDLI Scheme shall be extended to such beneficiaries where the deceased employee was a member of the Fund or a provider fund exempted under Section 17 of the EPF & MP Act aid was in employment for a continuous period of 12 months preceding the month in which he died, irrespective of change of establishment during the said period.
What is the EDLI scheme?
The EDLI scheme was implemented as part of the Employees’ Provident Fund and Miscellaneous Provisions Act (EPF and MP Act), 1952. Employees Deposit Linked Insurance Scheme or EDLI is an insurance cover provided by the EPFO (Employees Provident Fund Organisation) for private sector salaried employees.
All employees who get a basic salary under INR 15,000 per month are eligible for the EDLI scheme. As per the provisions of the EDLI, the contribution of an employer must be 0.5% of the basic salary or a maximum of Rs. 75 per employee per month. If the employer does not have any group insurance in place, then the maximum contribution is limited to INR 15,000 per month.
How can a person claim death insurance benefits?
In case of the unfortunate death of a member, the family gets insurance of up to 7 lakhs under the EDLI scheme and monthly widow/child/orphan pension under the EPS scheme.
The family, minor or lunatic member can also claim provident fund withdrawal using EPF form 20 with duly completed Form 5 IF.
If there is no employer or the signature of the employer cannot be obtained, the form must be attested by any of the following:
- Local MP or MLA
- Gazetted Officer
- Magistrate
- Member/Chairman/Secretary of the Local Municipal Board
- Member of the regional committee of EPF or CBT
Since so many people are dying during the second Covid-19 wave, this insurance benefit can be of great help to the deceased person’s family. If the deceased person doesn’t have a nominee, then the legal heir can claim the amount.
