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EPFO vide notification no. G.S.R. 299 E has amended The Employees’ Deposit-Linked Insurance Scheme, 1976. As per the amendment, the maximum assurance benefit under the Employees’ Deposit Linked Insurance (EDLI) scheme has now been increased to seven lakh (Maximum Benefit) from the existing cover of six lakhs. Please refer to the enclosed notification for more details.

• Features of EDLI

1. The family members, legal heirs, or nominees of the member can be availed of the insurance benefits
2. Members of EPFO are automatically enrolled for EDLI.
3. An EPFO member is only covered by the EDLI scheme as long as he/she is an active member of the EPF. His family/heirs/nominees cannot claim it after he/she leaves service with an EPF covered company.
4. No minimum service period for availing EDLI benefits required.
5. The employer has to make a contribution to EDLI.
6. The claim amount under ELDI is 35 times the average monthly salary in the past 12 months subject to a maximum of 7 lakh.
7. The average monthly salary is calculated as the Basic + Dearness Allowance + Other EPF wages of the employee
8. A bonus of 1.75 Lakhs is also applicable under this scheme
9. The employer can opt-out of the scheme in case he takes a higher paying life insurance scheme for employees under Section 17 (2A)

• EDLI Calculation

The maximum average monthly salary of an employee is capped at Rs. 15,000. So, 30 times the salary comes to be around to be 35 x ? 15,000 = Rs. 5, 25,000 A bonus amount of up to Rs. 1, 75,000 is also paid to the claimant under this scheme. Thus, the total amount payable under this scheme to the beneficiary is Rs. 7, 00,000.

• EDLI Form 5 IF

EDLI Form 5 IF is filled by the nominees, heirs, or family members of the member after his death to claim the insurance amount under the EDLI Scheme. The form has to be filled separately by each claimant. In the case of a minor claimant, the guardian has to fill the form on his behalf. In the case of more than one minor where the guardian is the same, a single form has to be filled by the guardian.

The form has to be filled offline and the employer has to furnish the certificate mentioning the date of death of the member. The mode of fund transfer has to be mentioned as well.

The form has to be submitted to the regional EPF Commissioner’s office along with the required document proofs. The claim has to be settled in 30 days and if the EPF commissioner is not able to settle the claim within 30 days, he will be liable to pay an interest of 12% per annum from the deadline date to the date of actual disbursal.

• How to Claim EDLI Benefits

1. Form 5 has to be filled to get the insurance benefits after the death of the member
2. The member should have been (at the time of his death), an active contributor to the EPF scheme
3. The benefits can be claimed by the nominee of the member
4. In case no nominee is declared, the surviving family members will be eligible for claiming the benefits. Family under EPS is defined as spouse, male children (up to 25 years), unmarried daughters.
5. If there are no surviving family members, the insurance benefits can be claimed by the legal heir of the deceased member
6. The claim form has to be signed and certified by the employer
7. Form 5 IF can be filled along with Form 20 (EPF withdrawal claim in case of the deceased member) and Form 10C/Form10D to claim benefits of all three schemes (EPF, EPS, and EDLI) in one go.

• Eligibility Criteria for EDLI

Following persons are eligible to apply for claiming insurance benefits under the EDLI Scheme:

1. Members of the family (Nominees) nominated under EPF Scheme.
2. In case of no nomination, all members of the family (except major sons, married daughters with major sons, and married granddaughters).
3. In case of no family, and no nomination, legal heir.
4. Guardian of a minor nominee/family member/legal heir.

• Documents Required for EDLI

The claimant has to submit the following documents along with the Form 5 IF to get the amount disbursed under the EDLI scheme:

1. Death Certificate of the member
2. Guardianship certificate if the claim on behalf of a minor family member/nominee/legal heir is by other than the natural guardian.
3. Succession certificate in case of a claim by the legal heir.
4. Copy of a canceled cheque of the bank account in which payment has opted.
5. In case the member was last employed under an establishment exempted under the EPF Scheme 1952, the employer of such establishment should furnish the PF details of the last 12 months under the Certificate part and also send an attested copy of the Member’s Nomination Form.