Discover how the EPFO (Employees' Provident Fund Organization) provides free insurance through the EDLI (Employee Deposit Linked Insurance) scheme. Learn about the comprehensive coverage offered, eligibility criteria, and the process to avail this valuable employee benefit.
The Employees Provident Fund scheme consists of three components namely Employees Provident Fund (EPF), Employees Pension Plan (EPS) and Employees Deposit Linked Insurance (EDLI) Scheme.
While EPF focuses on wealth creation and EPS on pensions, EDLI is an insurance plan for which you do not need to pay a separate premium. If an employee dies before the age of 58, his or her family can claim the insurance money via Form 51F. Find out how you can claim that money.
EPFO: Employee Deposit Linked Insurance Scheme (EDLI) is a free insurance provided by EPFO to all employees who contribute their funds to the EPF. If for any reason an EPFO member dies while at work, his or her family is entitled to receive financial assistance in the form of insurance under the EDLI scheme.
How To Claim EDLI Scheme Free Insurance Benefits?
Discover the EDLI Scheme features with EPFO: The plan payment of the benefit amount is 20 times the salary or is based on the deposit in the deceased's provident fund, whichever is less. As per the rules laid down by the EPFO, the maximum benefit amount under the EDLI scheme is Rs 3 lakh and an additional 20% of the calculated benefit amount is also paid.
How to Nominate a Beneficiary under the EDLI Scheme?
An employee does not need to complete a separate application for the EDLI program. The application submitted for EPF works for both EDLI and EPS.
Nomination: If the employee has made a nomination under the Employees Provident Funds Scheme, the nominee will be eligible to claim the Edli amount.
No Nomination: If no nomination has been made, the amount will be payable to the members of the employee's family in equal shares. However, certain family members, such as sons who have attained majority, married daughters whose husbands are alive, and others, may not be eligible to receive a share of the amount.
How to Apply for EDLI Scheme Free Insurance?
The form to be filled for EDLI scheme is Form-51F.
In case of premature death of the EPF subscriber, his legal representative or heir can claim the insurance cover.
For this, the candidate's age must be at least 18 years old. If the candidate is a minor, the form can be completed by his guardian.
How to Apply for EDLI Insurance Offline with From 51F?
Form 5IF is completed offline. This form shall be submitted to the EPF Regional Commissioner's office after certification of the claim for any benefits that the candidate is entitled to receive in the event of death of the EPFO member.
This form seeks information about the deceased member such as date of death, name and address of factory/establishment, PF account number, etc.
Apart from this, some important documents like EPFO member's death certificate, succession certificate, canceled check, etc. also need to be submitted along with the form.
If the request is submitted on behalf of the minor's guardian, the guardianship certificate must also be submitted.
What is the EDLI Scheme and How Does it Work?
The 5IF form must be verified: After filling this form, the applicant needs to get verification of the employer/company where the EPFO member was working at the time of death.
After verification, the form is sent.
This situation can also occur in the event of company closure; In this situation, you can submit it after the officials mentioned here verify it.
- Magistrate
- published official
- President of the Gram Panchayat where there is no union council
- President/Secretary/Member of the local city/district council
- Members of Parliament/Assembly
- Members of the CBT/Area Committee/EPF
- Manager of the bank where you have a bank account
- Head of any recognized educational institution.
How Does EDLI Scheme Protect Employees' Families?
Who receives benefits from the EDLI program?
According to the EPFO website, as many as 187 classes of establishments are included in the system. Each of these 187 classes of establishments and employing more than 19 persons automatically comes under the purview of the EPF and the MP Act, 1952. Employees working in such establishments are entitled to the EDLI scheme.
I. Understanding the Edli Scheme: The Edli Scheme was introduced with the aim of providing life insurance coverage to employees in the organized sector. It ensures that the families of insured employees receive financial assistance in the unfortunate event of the employee's demise. The EPFO, a statutory body under the Ministry of Labour and Employment, oversees the implementation of the scheme. To be eligible for coverage, an employee must be a member of the Employees' Provident Fund (EPF).
II. Coverage and Benefits of the Edli Scheme: Under the Edli Scheme, employees are provided with life insurance coverage. The insurance amount is determined based on a formula that takes into account the average monthly wages and the length of the employee's service. The insurance coverage is a multiple of the average monthly wages and can go up to a maximum limit set by the EPFO. In addition to the insurance coverage, the scheme also provides various benefits to the beneficiaries of the insured employee, such as funeral expenses and education assistance for children.
III. Impact on Employees and Their Families: The Edli Scheme plays a crucial role in providing financial security to the families of insured employees. In the event of the untimely demise of an employee, the scheme offers relief and support to the dependents by providing them with a lump sum amount. This financial assistance can help the family cope with the loss of income and meet their immediate financial needs. The Edli Scheme ensures that the family can continue their lives with a certain level of financial stability.
Real-life examples and testimonials highlight the positive impact of the Edli Scheme on families. These stories showcase how the scheme has helped families overcome financial hardships and provided them with a sense of security during difficult times. The scheme has been instrumental in preventing families from falling into financial distress and has played a significant role in their overall well-being.
IV. Criticisms and Challenges: While the Edli Scheme has been successful in providing financial security to employees' families, it is not without criticisms. Some critics argue that the insurance coverage provided under the scheme may not be sufficient to meet the long-term financial needs of the beneficiaries. Additionally, there have been concerns about the efficiency and transparency of the claim settlement process. These issues need to be addressed to further improve the effectiveness of the scheme.
Implementation and reaching out to all eligible employees have been significant challenges for the Edli Scheme. The EPFO has been making efforts to raise awareness about the scheme and simplify the claim settlement process. Regular reviews and improvements in the scheme's implementation are necessary to ensure that its benefits reach all the intended beneficiaries.
V. Success Stories and Case Studies: Numerous success stories and case studies highlight the positive impact of the Edli Scheme. These stories showcase how the scheme has provided financial stability and security to families during times of crisis. The Edli Scheme has played a critical role in helping families rebuild their lives and providing them with a safety net in the face of adversity. These success stories serve as examples of how the scheme has positively impacted the lives of beneficiaries.
The Edli Scheme stands as a significant pillar of India's social security system, providing financial security and support to employees and their families. It ensures that the dependents of insured employees are protected in case of a tragedy. While the scheme has received criticisms, efforts are being made to address the challenges and improve its effectiveness. The success stories and case studies demonstrate the tangible benefits of the scheme and its impact on the lives of beneficiaries. It is crucial for employees to be aware of and understand the benefits of the Edli Scheme to ensure that they can take advantage of this valuable social security provision.
Understanding the Edli Scheme benefits and eligibility
The Employees' Deposit Linked Insurance (Edli) Scheme is a social security initiative introduced by the Indian government to provide life insurance coverage to employees in the organized sector. Administered by the Employees' Provident Fund Organization (EPFO), the scheme aims to offer financial protection to the families of insured employees in the unfortunate event of their demise.
Under the Edli Scheme, which is an extension of the Employees' Provident Fund (EPF), a portion of the employee's monthly salary is deducted and contributed to a fund. This fund is then utilized to provide life insurance coverage to the eligible employees. The insurance coverage amount is determined based on a specific formula, taking into account the average monthly wages of the employee and the length of their service.
To be eligible for coverage under the Edli Scheme, an employee must be a member of the EPF. The EPF is a mandatory savings scheme for employees in the organized sector, wherein a portion of their salary is deducted and deposited into a provident fund account. The EPF not only serves as a retirement savings scheme but also acts as the foundation for the Edli Scheme.
The Edli Scheme ensures that the families of insured employees receive financial assistance in the form of a lump sum payment in the event of the employee's demise during their employment. This insurance coverage provides a safety net for the dependents, helping them cope with the loss of income and meet their immediate financial needs.
The insurance coverage provided under the Edli Scheme is calculated as a multiple of the average monthly wages drawn by the employee during their service period. The maximum limit for insurance coverage is set by the EPFO. In addition to the insurance coverage, the scheme also provides certain additional benefits. These benefits include funeral expenses, which help cover the costs associated with the last rites of the deceased employee, and education assistance for the children of the insured employee.
It is important to note that the Edli Scheme does not require any separate contribution from the employee. The insurance coverage and additional benefits are funded through the contributions made to the EPF by the employer and the employee. The employer contributes a specific percentage of the employee's salary to the EPF, and a matching contribution is made by the employee.
The Edli Scheme plays a crucial role in providing financial security to the families of insured employees. It ensures that the dependents are protected and supported during times of crisis. The scheme not only helps alleviate the financial burden but also provides a sense of stability and reassurance to the beneficiaries.
In conclusion, the Edli Scheme is a vital component of India's social security system, providing life insurance coverage and additional benefits to employees in the organized sector. It serves as a safety net for the families of insured employees, offering financial protection and support during difficult times. By understanding the intricacies of the Edli Scheme, employees can make informed decisions and ensure that their families are adequately protected.
