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Employees' Deposit-Linked Insurance Scheme (EDLI) provides death cover and financial assistance to the employee's dependents.
The scheme is available to all employees of establishments covered under the Employees' Provident Fund (EPF) Act.
The subscriber does not make the contributions, but the company contributes a percentage of the employee's monthly salary to this scheme.
The employee's legal heirs are assured to receive a maximum of Rs 7 lakh if the EPF member dies in service.
The scheme’s coverage applies even if the employee changed jobs in the past 12 months before death.
The employees get enrolled in the EDLI scheme by default if the organisation is covered under the EPF Act and can opt out for a higher-paying insurance plan.
The employer contributes a minimum of 0.5% and a maximum of Rs 15,000 of the employee's salary monthly.
The nominee can apply for a deceased member's EDLI, PF, and pension benefits by submitting a composite form, a death certificate and a cancelled bank cheque.