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.
If an employee unfortunately dies during his or her service, then the nominee mentioned in the respective account will receive the insurance amount from EPFO under the Employees’ Deposit-Linked Insurance (EDLI) scheme.
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.
The EDLI scheme was implemented as part of the Employees’ Provident Fund and Miscellaneous Provisions Act (EPF and MP Act), 1952. Under Employees’ Deposit-Linked Insurance(EDLI) scheme, employees don’t need to make any contribution. Employer’s need to contribute 0.5 per cent of PF wages limited to Rs 75 per month.
How To Claim Death Insurance Benefits
An employee, who has an EPF account, mentions the details of nominee in PF Form Number 2. The nominees can avail the death insurance benefits under EDLI scheme. However, the official nominee needs to make a claim in order to get the benefits.
If the nominee’s name is mentioned in the PF Nominee Form, then he or she needs to submit Form 20, 10 D and Form 5. The forms can be submitted online.
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.