Govt Scheme Alert : In a significant move benefiting crores of salaried workers across India, the Employees’ Provident Fund Organisation (EPFO) is offering an insurance cover of up to ₹7 lakh under its Employees’ Deposit Linked Insurance (EDLI) scheme. Many employees are unaware of this life-changing benefit, even though they are automatically enrolled through their EPF contributions. Here’s a detailed breakdown of how this scheme works, who is eligible, and how the claims can be made.
Govt Scheme Alert : What is the EPFO EDLI Scheme?
The Employees’ Deposit Linked Insurance (EDLI) Scheme is a group life insurance scheme run by EPFO for salaried employees. It provides financial assistance to the nominee or legal heir of a member in the event of their untimely death during active service.
- Launched by: Government of India through EPFO
- Benefit: Insurance cover of up to ₹7 lakh
- Eligibility: All employees enrolled under EPF
- Premium: No cost to the employee; paid by employer
- Coverage Duration: As long as EPF contributions are active
Key Features of the EDLI Scheme
Here are the standout features that make the EDLI scheme extremely important for salaried workers:
- Automatically linked with EPF account
- No separate registration required
- Insurance coverage of ₹2.5 lakh to ₹7 lakh
- No age limit for coverage
- Covers death due to illness, accident, or natural causes
- Claim can be filed by nominee or legal heir
Eligibility Criteria to Receive ₹7 Lakh Insurance
Not every EPF member may be eligible for the full ₹7 lakh. Certain conditions need to be fulfilled:
- The member must have been in active service at the time of death.
- The EPF account should be active with recent contributions.
- Salary drawn and EPF balance may influence the final payout.
- The nominee should be registered and updated in EPFO records.
see more : Check Your PF Account Balance
How the Insurance Amount is Calculated
The insurance amount is calculated based on the last 12 months’ average basic salary and DA (Dearness Allowance). The formula used is:
Insurance Amount = 35 × Average Monthly Salary (Basic + DA) + Bonus (up to ₹1.75 lakh)
Maximum benefit limit: ₹7 lakh
Table 1: Insurance Payout Estimate Based on Salary
| Average Monthly Salary | 35×Salary Component | Bonus Component | Total Payout |
|---|---|---|---|
| ₹10,000 | ₹3,50,000 | ₹1,75,000 | ₹5,25,000 |
| ₹12,000 | ₹4,20,000 | ₹1,75,000 | ₹5,95,000 |
| ₹14,000 | ₹4,90,000 | ₹1,75,000 | ₹6,65,000 |
| ₹15,000 (Max Limit) | ₹5,25,000 | ₹1,75,000 | ₹7,00,000 |
| ₹18,000 | ₹5,25,000 (Capped) | ₹1,75,000 | ₹7,00,000 |
| ₹20,000 | ₹5,25,000 (Capped) | ₹1,75,000 | ₹7,00,000 |
| ₹25,000 | ₹5,25,000 (Capped) | ₹1,75,000 | ₹7,00,000 |
Note: The payout is capped at ₹7,00,000 irrespective of salary beyond ₹15,000.
Documents Required to File EDLI Claim
To make the claim process smoother, beneficiaries should prepare the following documents:
- Death certificate of the EPF member
- Nominee’s identity proof and bank details
- Form 5IF (filled and signed)
- Employer’s certification (if applicable)
- Cancelled cheque of nominee’s bank account
- EPF UAN number and KYC documents
Step-by-Step Claim Process for EDLI Insurance
Follow these steps to claim the insurance benefit under EDLI:
- Nominee Submission: Fill Form 5IF and submit it with supporting documents to the employer or EPFO.
- Verification: Employer verifies details and forwards the claim to the EPFO.
- Processing: EPFO processes the claim within 15-30 working days.
- Payout: Approved amount is directly transferred to nominee’s bank account.
Table 2: Timeline & Roles in EDLI Claim
| Step No. | Actor | Action | Timeline |
|---|---|---|---|
| 1 | Nominee | Submit claim form with docs | Immediately |
| 2 | Employer | Verify & forward to EPFO | Within 7 days |
| 3 | EPFO Office | Process claim & verify docs | 15-30 days |
| 4 | EPFO | Transfer funds to nominee | Upon approval |
| 5 | Nominee | Receive payment in bank account | Final Step |
How to Check If You’re Covered Under EDLI
Most employees contributing to EPF are automatically covered. Here’s how to check:
- Log into EPFO Member Portal
- Go to ‘View’ > ‘Service History’
- If your employer contributes to EPF, you are most likely covered under EDLI
Alternatively, confirm with your HR or employer’s EPF handling department.
Benefits to the Family of the Deceased
This scheme is a major support system for families who suddenly lose their primary breadwinner. Key benefits include:
- Immediate financial assistance without any extra premium
- Support for education, living, and liabilities of the family
- Ease of claim process through online and offline modes
Government’s Objective Behind the EDLI Scheme
The Government of India, through EPFO, aims to provide:
- Social security to workers in the private and unorganized sectors
- Equal opportunity for all salaried individuals, regardless of income
- A financial backup plan for workers’ families after untimely death
Frequently Asked Questions (FAQs)
1: Do employees need to pay for this insurance?
No, the employee does not pay anything. The employer contributes 0.5% of basic salary to the EDLI fund.
2: Can the amount exceed ₹7 lakh?
No, the maximum limit for insurance payout is capped at ₹7 lakh.
3: What if there is no nominee?
In such cases, the legal heir of the deceased can file the claim by submitting additional legal documents like succession certificate.
4: Is EDLI valid after retirement or leaving the job?
No, the benefit is available only if the member is in active service at the time of death.
The EDLI insurance scheme by EPFO is a silent financial protector for millions of salaried workers. Without paying any premium, employees receive coverage of up to ₹7 lakh – a significant relief for families facing sudden loss. It’s crucial for every EPF member to ensure their nominee details are up to date and their EPF account is active. Spread awareness about this scheme so that no eligible family misses out on the benefit.
This article is for informational purposes only. Readers are advised to visit the official EPFO website or consult their employer/HR department for the most accurate and updated details regarding EDLI claims and procedures.
What is the coverage amount provided by EPFO to workers under the government scheme?
EPFO provides a ₹7 lakh cover to workers as part of the scheme.
How can workers benefit from the EPFO scheme offering a ₹7 lakh cover?
Workers can benefit from the EPFO scheme by receiving a ₹7 lakh cover, providing financial security and insurance coverage in case of unforeseen circumstances.
