EPFO: The Employees’ Provident Fund Organization (EPFO) has implemented significant modifications to its Employees Deposit Linked Insurance (EDLI) scheme aimed at enhancing financial security for the families of EPF members and streamlining the death claims process. These adjustments will not only expand the insurance coverage but also bolster the financial protection available to the members’ families.
Under the revised regulations, if a new EPF member passes away within one year of employment, their family will receive a minimum insurance benefit of Rs 50,000. Previously, there was no established minimum amount for such cases.
Change in rule
In a statement, the EPFO noted, “If an EPF member dies before completing one year of service, their family will receive a minimum life insurance benefit of Rs 50,000. This amendment is anticipated to assist family members in over 5,000 death cases during service each year.” Additionally, if an employee’s EPF contributions cease for six months for any reason, they will still be eligible for insurance benefits.
According to the new guidelines, if an EPF member dies within six months of their last contribution and their name remains on the company’s records, their family will qualify for insurance benefits under the EDLI scheme. Previously, families of EPF members who died after a non-contributory period were not entitled to EDLI benefits. Furthermore, if there is a brief interruption in a person’s service due to job changes, they will still be eligible for this coverage. In the past, even a one or two-day gap in service was not recognized as continuous, resulting in the employee’s family being denied insurance benefits.
What is EDLI Scheme
The Employee Deposit Linked Insurance (EDLI) is a life insurance program provided by the EPFO, covering employees enrolled in the EPF scheme. This initiative was launched by the Government of India in 1976, and it offers insurance benefits of up to Rs 7 lakh to the families of EPF members who pass away while employed.