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EPFO Life Insurance

Employees Deposit Linked Insurance Scheme (EDLIS)

Under the EDLI Scheme life insurance cover is provided to the PF members. The cost of the scheme is borne by the employer but as the amount of life coverage under this statutory scheme is very low, usually employers opt out of the EDLI scheme by going for group insurance scheme which usually provides higher coverage to employees without any increase in cost to the employer. Premium for the EDLI is entirely funded by the employer, which contributes 0.5% of monthly basic pay (capped at a maximum of Rs 15,000) as premium for life cover in case the organization does not have a group insurance scheme for its employees.

In Apr 2021, the EPFO announced increase in the maximum amount assured under its Employees Deposit Linked Insurance Scheme (EDLI) to Rs 7 lakh from the existing Rs 6 lakh. The claim amount of the EDLI is decided by the last drawn salary of the employee. The claim amount would be:

  • 35 times the salary.For this calculation salary is basic pay plus DA or Dearness Allowance. The upper limit of wage for the EDLI is Rs 15,000.
  • Along with this, the bonus of Rs 1.75 lakh is also given.
  • Thus, the maximum EDLI claim amount would be Rs 7 lakh[(35 x15,000) + 1,75,000].  However, with effect from 15th February, 2018, the Government has fixed a minimum of Rs.2.50 lakh payment under EDLI Scheme, 1976.  
  • The condition of continuous employment of one year under current employer before being eligible for insurance benefits was also removed.
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