Employee Deposit Linked Insurance Scheme

What is employees deposit linked insurance scheme?

The Employees Deposit Linked Insurance Scheme (EDLI) is a life insurance program managed by the Employee Provident Fund Organization (EPFO) that provides coverage to private sector employees who are enrolled in the Employees’ Provident Fund (EPF) scheme. The scheme pays a lump sum to the registered nominee of the employee in the event of the employee’s death during their service period. All organizations that are registered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 are required to offer EDLI to their employees and it works in conjunction with EPF and EPS. The amount of benefits provided is determined by the employee’s last drawn salary.

What are the features of the employees deposit linked insurance scheme?

The features of the Employees Deposit Linked Insurance Scheme (EDLI) include:

1. Coverage: EDLI provides insurance coverage to employees who are covered under the Employees’ Provident Fund (EPF) scheme, in the event of death or disability of the employee.
2. Premium: The premium for the insurance coverage is paid by the employer and is a small percentage of the employee’s salary.
3. Benefit Amount: The benefit amount is calculated based on the employee’s average balance in the EPF account, subject to a maximum of Rs. 6,00,000.
4. Eligibility: All employees who are enrolled in the EPF scheme and are covered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 are eligible for EDLI coverage.
5. Nomination: EDLI benefits are paid to the registered nominee of the employee in the event of the employee’s death or disability during their service period.
6. Complementary: The scheme works in combination with EPF and EPS, to provide financial protection to employees and their families.
7. Compliance: All organizations that are registered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 are required to offer EDLI to their employees and comply with the regulations of the scheme.

What is the procedure for claiming benefits under edli?

The procedure for claiming benefits under the Employees Deposit Linked Insurance Scheme (EDLI) typically includes the following steps: HBR’s employee insurance benefits research

1. Notify the employer: The nominee or legal heir of the employee should inform the employer of the employee’s death as soon as possible.
2. Submit a claim form: The nominee or legal heir of the employee should submit a claim form to the employer, along with relevant documents such as the death certificate and proof of relationship with the employee.
3. Submit the documents to the EPFO: The employer should then submit the claim form and relevant documents to the nearest regional office of the Employee Provident Fund Organization (EPFO).
4. Verification and sanction: The EPFO will verify the documents and sanction the claim, if all the requirements are met.
5. Payment of Benefits: After the sanction of the claim, the benefit amount will be paid to the nominee or legal heir of the employee.

It’s important to note that the claim process can take some time, and the nominee or legal heir should keep track of the status of the claim with the employer and the EPFO. It’s also important to make sure that all the required documents are in order, as incomplete or incorrect documents may delay the processing of the claim. SHRM’s employee insurance guidance

Understanding EDLI and similar statutory insurance schemes ensures HR teams meet compliance obligations in applicable jurisdictions. Using objective assessments and a structured hiring plan drives improvement, helping organizations attract and retain top talent.

Frequently asked questions