Personal Finance

What is Employees' Deposit Linked Insurance Scheme?


The Employees’ Deposit Linked Insurance Scheme or EDLI is an insurance cover provided by the EPFO (Employees’ Provident Fund Organisation) for private sector salaried employees. This scheme works in combination with EPF and Employees’ Pension Scheme (EPS). The extent of the benefit is decided by the last drawn salary of the employee.

The registered nominee of the EDLI scheme receives a lump-sum payment in the event of the death of the EPF member, during the period of the service. The nominee registered in the EDLI is same as registered in the Employees’ Provident Fund (EPF) Scheme.

The EPFO recently tweeted from its official Twitter handle about the features of the scheme.

Here is a look at 5 key features of the EDLI scheme.

  1. Maximum assured benefit up to Rs 7 lakh to be paid to the nominee or legal heir of the EPF member if death occurs while in service.
  2. Under EDLI scheme 1976, minimum assurance benefit is of Rs 2.5 lakh in case the deceased member was in continuous employment for 12 months prior to his or her death.
  3. This life insurance benefit being given to the EPFO member is free of cost for the PF/EPF account holders. Minimal contribution by employer at 0.5% of employee’s monthly wages, up to wage cieling of Rs 15,000; no contribution made by employee
  4. Auto enrolment of PF members in EDLI scheme
  5. Benefit directly credited to bank account of legal heir or nominee

Also read:
How nominee can file claim in EPF, EPS and EDLI online after death of an individual





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