Employees Deposit Linked Insurance Scheme (EDLI) Amendment (India)

As per the latest notification from The Indian Ministry of Labour and Employment, in concern with the powers conferred by Section 7 of the Indian Employees’ Provident Funds and Miscellaneous Provisions Act, 1952,  vide notification no. G.S.R 299E, dated 28th April 2021, has amended few benefits which can be availed under the Employees’ Deposit Linked Insurance (EDLI) scheme.

Amendment as per the Latest Notification

The minimum sum assured has been retained at INR 250,000 and the maximum sum assured scheme has been increased to INR 700,000, from the existing INR 600,000.

The scheme shall be in force for a period of 3 years, from the date of publication of the Official Gazette. No Minimum service period required to be eligible for EDLI benefits

Documents required to claim the benefits

  • Form 5 IF has to be filled by each beneficiary to claim the insurance amount.
  • A death certificate has to be mandatorily attached while claiming the insurance amount. The claim has to be settled by the EPF (Employee provident fund) commissioner within 30 days of application

What is the Employees Deposit Linked Insurance (EDLI) Scheme?

Uncertainties of life in the modern world have made getting adequate insurance cover imperative for every individual. This is especially important for private-sector employees who do not enjoy the same social security benefits as public sector employees. To extend life insurance benefits to private sector employees, the Indian government had introduced the Employees Deposit Linked Insurance Scheme (EDLI) in 1976.

The Employees Deposit Linked Insurance Scheme or EDLI is an insurance cover provided by the Indian EPFO (Employees Provident Fund Organisation) for private sector salaried employees. The registered nominee receives a lump-sum payment in the event of the death of the person insured, during the period of the service. EDLI applies to all Indian organisations registered under the Indian Employees Provident Fund and Miscellaneous Provisions Act, 1952. All such organisations must subscribe to this scheme and offer life insurance benefits to their employees. This scheme works in combination with EPF (Employee provident fund) and EPS (Employee Pension Scheme). The extent of the benefit is decided by the last drawn salary of the employee.

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