The Employees’ Provident Fund Organization has introduced an important life insurance scheme for its Members under Employees Deposit Linked Insurance (EDLI). As per the present ruling, employees entitled to this scheme can take life coverage up to ₹ 7 lakh to help secure their families in case of eventuality. Go through this post to know its eligibility criteria, benefits, and the claims process under this scheme.
What Is The EDLI Scheme?
The employee deposit linked insurance (EDLI) is the title of the scheme, under which EPFO introduced this life insurance program specifically designed for living EPF account holders. The financial benefit is toward the nominee/legal heir of the respective employee, in the circumstances of premature death of that employee during the sanctioned period of service.
Eligibility Criteria
For availing EDLI insurance benefits require the following eligibility conditions:
- Employee should be active member of EPF.
- Employee must have contributed for at least a month under Employee Provident Fund.
- Employees in public and private sector can avail of the scheme.
- Benefits from this scheme can be received by nominee or lawful heir on death of member.
Benefits Of EDLI scheme
- Coverage Rs 7 Lakh: Maximum coverage under the revised EDLI scheme is up to Rs 7 lakh in the case of death.
- No Extra Premium: Employees will not have to pay any premium for this insurance coverage, as it is from an employer’s contribution.
- Entire Amount at One Go: In the event of death, the entire sum is paid to the nominee at one go.
- Financial Security: Offers financial protection to the immediate family of the deceased following the employee’s expiry.
How To Lodge An Insurance Claim
Insurance claims involve the following process:
Inform The Employer:
The nominee or legal heir should inform the employer or HR about the demise of a particular employee.
Filing The Claim
The claim is to be filed in Form 5 IF to be provided to the employee through either the EPFO portal or the employer.
Document Attachment Along With This Form:
The following documents should be attached:
- Death Certificate
- Nominee Aadhaar Document
- Bank Account Particulars
- Legal Heir Certificate, if applicable
Verification Of The Claim By The Employers
The claim form would be verified by the employer and sent to the respective regional EPFO office for further processing.
Settlement Of Claims
The claims would be settled by the EPFO and, upon collection of the necessary documents, credited into the nominee’s bank account.
Also Read: DA Increase Latest News: 4% Increase Expected Soon, What Experts Say