EPFO’s Employees Deposit Linked Insurance (EDLI) scheme offers a lifeline to its members, providing a maximum insurance cover of Rs 7 lakh, free of cost.
Here are the vital rules you need to know about this crucial benefit.
Understanding the EDLI Scheme: A Lifesaver Since 1976
The EDLI scheme, initiated by EPFO in 1976, aims to offer financial support to the families of deceased EPFO members.
This insurance cover comes at no expense to the members, with contributions made by the respective companies.
How Is the Coverage Calculated?
The insurance amount is determined based on the member’s basic salary and Dearness Allowance (DA) of the last 12 months.
Claimants can expect coverage up to 35 times the last basic salary + DA, along with an additional bonus of up to Rs 1,75,000.
Continuous Coverage for Employed Members
Under the EDLI scheme, coverage is provided only as long as the member remains employed.
Once the member leaves the job, their family or nominees cannot claim the benefit.
However, if the member has been employed continuously for 12 months,
the nominee is entitled to a minimum benefit of Rs 2.5 lakh upon the member’s demise.
Eligibility in the Absence of Nomination
In cases where no nomination exists, the spouse, unmarried daughters, and minor son(s) of the deceased employee are considered eligible beneficiaries under the EDLI scheme.
Coverage can be claimed in the event of illness, accident, or natural death while in employment.
How to Claim Your Entitlement
In the unfortunate event of the EPF subscriber’s demise, the nominee or legal heir can make a claim for the insurance cover.
The nominee must be at least 18 years old, or if younger, the parents can file the claim on their behalf.
Essential documents such as the death certificate and succession certificate are required for the claim process.
If the claim is made on behalf of a minor, guardianship certificate and bank details must be provided.
