Legal Heirs Now Eligible Upto Rs 7 Lakh Insurance Under EDLI Scheme, Check Details

May 05, 2021, 18:46 IST

As many people are dying due to COVID-19 in the second wave, the need for insurance benefits come as a great help in these trying time,especially when the head of the household is still working.

Recently the Central Government has enhanced the benefit under the Employees’ Deposit Linked Insurance Scheme (EDLI).

Through a gazette notification dated April 28, 2021, the maximum assurance benefit payable in the EDLI Scheme has been enhanced to Rs. 7 lakh from the earlier maximum benefit of Rs.6 lakh.

Earlier, in September 2015 the benefits under the EDLI scheme was increased from Rs 3.6 lakh to Rs 6 lakh, which got notified in June 2016.

The minimum assurance benefit payable under the EDLI Scheme has been fixed as Rs.2.50 lakh effective 15.02.2020

The benefit payable under EDLI Scheme, 1976 shall be extended to such beneficiaries where the deceased employee was a member of the Fund or a provider fund and was in employment for a continuous period of 12 months preceding the month in which he died, irrespective of change of establishment during the said period.

The membership of EDLI is automatically provided to those covered in EPF.

The EDLI provides insurance cover to be paid to the employee’s nominee on the death of the employee during employment. The claim amount is linked to the average of the provident fund account balance of an employee and is payable to the nominee of the employee.

As the EDLI scheme applies to all employees under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, there is no need to add the nominee separately.

Up to the maximum wage ceiling of Rs 15,000, the employer has to contribute 0.5 percent of the employee’s wages along with administrative charges.

How to claim EDLI

EDLI Form 5 IF has to be duly completed and submitted by the claimant.
The claim form has to be signed and certified by the employer.
If there is no employer or the signature of the employer cannot be obtained, the form must be attested by any of the following:
Bank manager (in whose branch the account was maintained), local MP or MLA, Gazetted Officer, Magistrate, Member/Chairman/Secretary of Local Municipal Board, Post Master or Sub-Postmaster, Member of the regional committee of EPF or CBT
The claimant must submit all the documents along with the completed form with the regional EPF Commissioner’s Office for processing of the claim.
The claimant can also submit Form 20 (for EPF withdrawal claim) as well as Form 10C/D to claim all the benefits under the three schemes, EPF, EPS and EDLI)
Any additional documents required must be furnished at the earliest to process the claim.
Once all the documents are provided and the claim is accepted, the EPF commissioner must settle the claim within 30 days from the receipt of the claim.
If not the claimant is entitled to interest @12% p.a. Till the date of actual disbursal.

Also Read: How To Invest in Post Office Scheme Which Will Give You Huge Returns