What is Employees’ Deposit Linked Insurance?
Susan Babu, Trivandrum
The Employees’ Deposit Linked Insurance scheme is mandatorily provided to all subscribers of the Employees’ Provident Fund scheme to contribute towards life insurance. EDLI provides for a lump sum payment to the insured’s nominated beneficiary in the event of death due to natural causes, illness or accident. The objective of EDLI was to put in place a mechanism to provide employees families with income security after the death of the member. It was funded through contributions by the employer and central government with no contribution by the employee.
