EPFO-EDLI scheme: A Provident Fund (PF) account holder is eligible for assured life insurance benefit up to ₹7 lakh without paying any premium
EPFO-EDLI scheme: The Employees’ Deposit Linked Insurance or EDLI scheme, 1976 is one of the most important schemes operated by Employees’ Provident Fund Organisation (EPFO). As per the EPFO rules, a Provident Fund (PF) account holder is eligible for assured life insurance benefit up to ₹7 lakh without paying any premium. All EPFO members are eligible for this EDLI benefit once their PF or EPF account gets opened. Apart from this life insurance benefit, there are some other features of the EDLI scheme as well that a PF account holder must know.
To make EPFO members aware of the EDLI scheme features, EPFO has recently tweeted about its scheme citing, “Salient Features of Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976.”
Here we list out top 5 EPFO-EDLI scheme features that an EPFO member should know:
1] Maximum assured benefit: Maximum assured benefit up to ₹7 lakh to be paid to the nominee or legal heir of the EPF member if death occurs while in service. Earlier, maximum assured benefit was up to ₹6 lakh, which has been increased to ₹7 lakh from April 2021.
2] Minimum assured benefit: Under EDLI scheme 1976, minimum assurance benefit is of ₹2.5 lakh in case the deceased member was in continuous employment for 12 months prior to his or her death.
3] No contribution from employees: This life insurance benefit being given to the EPFO member is free of cost for the PF/EPF account holders. Their employer will pay 0.50 per cent of the monthly wages up to the ceiling of ₹15,000.
4] Auto enrolment: There is auto enrolment provision for PF or EPF account holders. They become eligible for EDLI scheme benefit once they become an EPFO member or subscriber.
5] Direct bank transfer: The EDLI scheme benefit will be directly credited to the bank account of the nominee or legal heir of the EPF or PF account holder.
However, for information to the EPFO members, nomination under the EPF scheme is applicable for the EDLI scheme, 1976. To claim insurance benefit given under EDLI scheme, the nominee or beneficiary needs to fill the form 51F.
