EPFO (Employees’ Provident Fund Organisation), is a social security organization set up by the Government of India that provides retirement benefits for private sector employees. Contains:
Employees’ Provident Fund (EPF): It is a defined contribution pension scheme in which both the employee and the employer contribute equally.
Employee Deposit Linked Insurance (EDLI): It is a free life insurance scheme that provides a cover of up to Rs 7 lakh to EPF members.
EDLI Scheme:
What is this?
EDLI is a free life insurance scheme that provides financial security to EPF members while they are employed. If a member dies, their family receives the death benefit.
Who is eligible?
All active EPF members, who are 18 years of age or above, are eligible for the EDLI scheme.
Members who have deposited minimum 12 months of EPF contributions are also eligible.
insurance coverage:
The sum assured is calculated on the basis of average salary and dearness allowance (DA) of the last 12 months.
The maximum sum insured is Rs 7 lakh.
Death benefit includes 35 times average salary + DA and bonus amount up to Rs 1.75 lakh.
How to make a claim?
On the death of an EPF member, the nominee or legal heir can claim the death benefit.
To make a claim, the claim form has to be submitted to the EPF office along with the required documents.
Required Documents:
death certificate
succession certificate
epf passbook
Nomination form (if any)
identity proof
proof of address
Important points:
The benefit of EDLI scheme is available only to working EPF members.
If a member voluntarily retires or leaves the job, he is no longer covered under the EDLI scheme.
It is important to submit the nomination so that the death benefit reaches the right person.
conclusion:
The EDLI scheme offered by EPFO is an important safety net for employees. This scheme provides financial assistance to their families in case of death. All EPF members should be aware of this scheme and avail its benefits.
This article provides you information about EDLI scheme. If you have any queries, you can contact the EPFO website or the nearest EPF office.
Additional Information:
EPFO website: https://www.epfindia.gov.in/
Information about EDLI Scheme: https://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/EDLI_1976.pdf
