Under the Employee Deposit Linked Insurance Scheme, employees and their family members get insurance cover up to a maximum of Rs 7 lakh. There is neither a need to apply separately for this scheme nor there is a need to make a separate contribution. Contribution is made to this scheme on behalf of the company itself.
Employed people invest in Employees’ Provident Fund (EPF) and also get the benefit of insurance scheme. Provides insurance cover facility to all EPFO members under the Employee Depository Linked Insurance (EDLI) scheme. To take advantage of EDLI, 0.5 percent of the salary is contributed every month. Its maximum limit has been fixed at Rs 15,000. But, the most important thing about this scheme is that the employees do not have to make any contribution. Let us know about this insurance scheme available under Employees’ Provident Fund ..
No employee has to enroll separately to take advantage of the EDLI scheme. If an employee is getting benefits under the EPF scheme, then they are automatically enrolled for the EDLI scheme. Employees’ Provident Fund consists of three parts. One is Provident Fund, the other is the contribution of the company/employer which goes to the Employees’ Pension Scheme and the third part goes to the EDLI.
The maximum benefit available under the EDLI scheme is Rs 7 lakh. The minimum benefit amount under this scheme is Rs 2.50 lakh and it does not depend on the salary of the employees.
Must have worked for at least 12 months
Eligible members of the family also get the benefit of insurance under the EDLI scheme. The condition for this is that the employee has to work for at least 12 consecutive months. However, it does not matter that the employee has worked in the same company during these 12 months in many companies. The benefit of EDLI scheme is available to the nominee, the eligible member of the family.
What are the benefits of insurance under this scheme
The nominee or eligible family member gets a maximum insurance cover of Rs 7 lakh under this scheme. The amount of insurance cover does not depend on the salary of the employee. After the recent revision, the sum assured is calculated on the basis of the formula given below:
Average salary of last 12 months X 35 + 50% of PF balance for last 12 months. The amount of PF balance in the last 12 months should not exceed Rs 1,75,000. Average salary includes basic salary and dearness allowance. It does not exceed Rs 15,000. Even after applying this formula, the minimum profit cannot be less than Rs 2,50,000.
Now let us understand it with the help of an example. Suppose your average salary for the last 12 months is Rs 18,000 and PF balance is Rs 2 lakh during this period. In such a situation, you will get a maximum benefit of Rs 7 lakh. (15,000 X 35 + 1,75,000)
How to claim benefits of this insurance?
Form IF has to be filled to claim insurance benefit under this scheme of EDLI. Apart from this, all supporting documents are also required. The claim amount will be released by the commissioner after verification of the application form for the claim. The claim amount will be sent directly to the beneficiary’s bank account.
