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EDLI Scheme Benefit on Death of Employee

The need for insurance benefits has shown its importance nowadays, as the second wave of COVID-19 hit the country harder. These times have proven that safety means not only being safe from getting affected by the virus itself but also it is equally important to have a backup plan and being safe from financial calamities. It is reported that a huge number of people who have died of corona may be registered for EDLI Scheme (Employees Deposit Linked Insurance Scheme). As a step towards financial safety and the wellbeing of the employees, the central Government has increased the benefits under the scheme via Gazette Notification No. G.S.R 299(E) dated 28th April, 2021. This scheme was introduced with the maximum death benefit of Rs. 3.6 Lakhs and later in September 2015 the limit increased to Rs. 6 Lakhs. The Ministry had increased the minimum amount of benefit to Rs. 2.50 Lakhs in February, 2018 which was valid for two years. Under the recent notification dated 28th April, 2021, the Employees’ Provident Fund Organization has extended the Minimum assurance benefit payable under EDLI scheme of Rs 2.50 Lakhs with retrospective effect from 15th February, 2020 and the maximum benefit is Rs. 7 lakhs.

With effect from 28th April, 2021 the pay-out to be awarded will be calculated as under:
{Average monthly salary of the employee for the last 12 months (capped at Rs. 15000/- p.m.) *30} +Bonus amount (Rs. 2,50,000/-)

These benefits are extended to the deceased employee if he/she is a member of Employee Provident Fund (EPF) and was in employment for a continues period of 1 year preceding the month of his/her expiry.

The EDLI provides insurance coverage to be paid to the employee’s nominee on the death of the employee during his/her employment. If no nominee was registered, then the family members or legal heirs can apply for the same. In the times of Corona, it is moral duty to inform the family members of the deceased employee regarding such schemes.

The nominee has to submit Form 5 IF to avail the benefits under EDLI scheme. This claim form will be certified by the employer. In case where there is no employer or the signature of the employer cannot be obtained, the form must be attested by any of the below person:

  1. Bank Manager in whose branch the account is maintained
  2. Local Member of Parliament (MP) or Member of Legislative Assembly (MLA).
  3. Gazetted officer, Magistrate, Member/chairman/Secretary of Local Municipal Board
  4. Post master or sub post master
  5. Member of regional committee of EPF or CBT

The attested form should be submitted to the EPF commissioner’s office for processing the claim. Once all the required documents are submitted with any deficiency, the EPF commissioner will approve the claim and the same will be settled within 30 days. If not settled within the prescribed time, the nominee is entitled to interest @12% p.a. till the date of settlement.   

 

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