Now EPF offers Life Insurance of Rs.2.5 lakh to Rs.6 lakh!! Earlier the limit of minimum insurance benefit was Rs.1.5 lakh and the maximum was Rs.6 lakh. Many of the salaried unaware this part that their EPF also offers insurance coverage of up to Rs.6 lakh.
Earlier I wrote a post when EPFO increased the maximum limit from the existing Rs.3.6 lakh to Rs.6 lakh (Refer the post “Do you know EPF offers up to Rs.6 lakh of Life Insurance (EDLI)?“.
Now as I said above, EPFO increased the minimum limit also from the existing Rs.1.5 lakh to Rs.2.5 lakh.
This Life Insurance which offered by EPFO is called EDLI (Employees’ Deposit Linked Insurance Scheme).
Features of EDLI or Employee Deposit Linked Insurance
- All employees who are the members of EPF are automatically eligible for EDLI.
- This Life Insurance coverage is irrespective of death occurred during working hours or non-working hours.
- It covers the death of an employee, irrespective of a cause of death.
- There are no exclusions under this plan.
- Coverage and premium will be purely based on your salary but not on age or gender.
- Earlier there was a condition that one must complete a year to be eligible for EDLI. Recently they removed such restrictions. Hence, you are covered from the first day itself.
- There is no maximum age set for this insurance.
- You no need to add nominee separately. Your EPF nomination itself considered for this scheme.
Who will pay the premium for EDLI or Employees Deposit Linked Insurance Scheme?
To understand about this, let us go deeper and see how you and the employer EPF contribution split. I tried to show the same in below image for your easy understanding.
From the above image, you noticed that the premium and management charges will be payable by your employer. But do note that the maximum limit set for this premium payment is 0.5% of Rs.15,000 (Whatever may be your actual EPF contribution from an employer or whatever may be your salary).
Note:-Salary for this purpose is Basic+DA only.
EPF offers Life Insurance of Rs.2.5 lakh to Rs.6 lakh
Under new changes, now EPF offers Life Insurance of Rs.2.5 lakh to Rs.6 lakh. As I pointed above, the employee will not contribute to EDLI. Only your employer will contribute to it. It is 0.5% of Rs.15,000 or Rs.75 per month to the maximum (based on your actual Basic+DA). The maximum amount payable by the employer is Rs.75. Refer the below image in that regard of notification.
How is EDLI calculated?
The average monthly salary (Basic+DA) drawn (subject to a maximum of Rs 15,000), during the last 12 months preceding the month in which the employee dies, is first multiplied by 30 times. This is added to 50% of the average balance in the account of the deceased in the provident fund during the preceding 12 months or during the period of his membership, whichever is less.
The minimum payable will now be Rs 2.5 lakh while the maximum will be Rs 6 lakh.
Let us assume that Mr.A’s salary (Basic+DA) at the time of death is Rs.10,000. Then assume his last 12 months average salary was Rs.10,000. Then we have to multiply this by 30. This will be Rs.3,00,000.
Now we have to add 50% of the average balance in the account of Mr.A during the preceding 12 months. Assume his EPF balance of last 12 months is Rs.1 lakh. Then 50% of this is Rs.50,000.
So in total, he will receive Rs.3,00,000+Rs.50,000=Rs.3,50,000.
Hope this is the good news for those who are the member of EPF.
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Kiran
Hi Sir, From where we will get a document for EDLI
Basavaraj Tonagatti
Dear Kiran,
From EPFO website or regional offices.
lakshmi
SIR, GOOD AFTER NOON
My brother had expired on 06.09.2019
dept.joined in (01.05.2015
salary received Rs.20598
how to calculate receving amount
please
which amount received by hand please help me sir
Basavaraj Tonagatti
Dear Lakshmi,
Please take a pain to read the above post.
Deepthi
Hi basavaraj,
My brother had expired recently in service ( 9 months doing job) , only he have 9 months PF and basic salary is 15000/
recently We got EDLI amount just 8000 rs . Actually We supposed to get 30 *15000 =450000 right.
Could you please help me to understand how they calculated.
Basavaraj Tonagatti
Dear Deepthi,
Refer above post properly.
SHYAM
Sir, Is this EDIL scheme applicable to post retiree ? If yes, what is time limit of filing Insurance claim by the legal heir after the retiree’s death. All other ‘after retirement dues’ settled.
Basavaraj Tonagatti
Dear Shyam,
It is for those who are working but not for retirees.
lakshmi
SIR, GOOD AFTER NOON
My brother had expired recently in service (01.05.2015
salary received Rs.20598
who to calculate receving amount
please
Basavaraj Tonagatti
Dear Lakshmi,
Please refer the above post.
P subramanian
Is it mandatory for the employer to pay the insurance premium. How can we know ?
Basavaraj Tonagatti
Dear Subramanian,
Yes, it is part of their EPF contribution.
Hemant Bagaria
Sir my friend was working in canara bank he expired on Feb 2016 can his family claim the life insurance policy of epfo
Basavaraj Tonagatti
Dear Hemant,
Yes, if Canara Bank providing EPF facility.
devendra singh
Dear Sir,
is this EDLI is applicable from a year 2008 or after that
Basavaraj Tonagatti
Devendra,
EDLI was there even before 2008 also.
raghu
Hi Sir,
My cousin brother suicide attempted due to some personal reasons, now he is working regularly on the his job. now can u explain claim eligibility.
Basavaraj Tonagatti
Dear Raghu,
Attempt will not be covered.
Nagaraju
Hi sir
My father was worked June 2012 to April 2018,
After join another company on may 2018 and he passed away October 2018 . How much money expect to the edli amount.
Basavaraj Tonagatti
Dear Nagaraju,
Refer the above post properly or approach the EPFO.
R Pratap kumar
Sir mere bade Bhai accident me death ho gyi thi 16/03/2019 ko
Unki salry 11000 thi isme kya benifit milsakt he or kitna milega
Basavaraj Tonagatti
Dear Pratap,
Hard to say. Hence, better to approach the regional EPFO.
VIJETA SADAFAL
how to apply ?my employees passed away in august-19 kindly revert how documentation process will submitted in EPFO For EDLE
Basavaraj Tonagatti
Dear Vijeta,
Approach the regional EPFO.
Shubham
Dear sir my father passed away 05/2019the cause of heart attack on the leave of esi hospital .he was on duty. Is nomni eligible for EDLI…
Basavaraj Tonagatti
Dear Shubham,
Yes.
Devesh
Hii
My father was died after retirement but he didn’t withdrawn his pf so can we claim 4 insurance
Basavaraj Tonagatti
Dear Devesh,
Sadly NO.
Rk
Hi sir your information is really help full. My friend passed way in a accident in Jan 2019. he is a private employe has a total experience of 7+years.
He has shifted his organisation 3months before his death and he has 1month gap bw his previous and current employment. In this case will he be considered as less than 12 months or 7 years.
Basavaraj Tonagatti
Dear RK,
If the same EPF was also used in second employment, then the total period is 1st and 2nd employment.
ASHOK DAS
Sir, One of my colleague had died (suicide) last year in March 2018 after one week of his resignation. Will his family member is eligible for applying EDLI.
Basavaraj Tonagatti
Dear Ashok,
Sadly NO.
Arun
Hi sir I’m Arun my brother had attempted suitable during his service period due to personal issues can my parents apply through this scheme?
Basavaraj Tonagatti
Dear Arun,
If the said employee died during service period, then yes his parents can apply for EDLI.
jas gandhi
Hi Mr.Basavraj
Earlier I too was of the opinion that the “minimum 12 months service” condition for EDLI had been removed and the minimum assured amount will be 2.5 lacs..
But very recently I have come across a case where employee had worked for 8-9 months and expired. His nominee just got around Rs. 10000/-
I spoke with EPFO officials and they said that the 12 months criteria still exists..
Sad but true..
Basavaraj Tonagatti
Dear Jas,
But I wrote this post based on EPFO Notifications.
Prasad v
Hi sir, am Mr.prasad from Bangalore. Am an private employee. I was not aware of ilfe insurance of epfo. Thanks for your post.
Can u tell me as a private employee, what are the hidden insurance are there, it helps me to find out and make document.
So that it helps my family.
Thanks
Basavaraj Tonagatti
Dear Prasad,
There are no such hidden insurance. If your employer providing certain insurance facilities like Life, Health and Accidental, then such are disclosed to you by your employer.
Arun
if someone left my company but still did not withdraw PF. will someone eligible for insurance in future.
Basavaraj Tonagatti
Dear Arun,
NO.
JAYACHANDRA
Dear Sir,
My brother Expire in 2016 during Road Accident while he going to my native , I do not withdrawal PF till date, Is that eligible for Life insurance scheme under EPF ? He was working employee during that period.
Basavaraj Tonagatti
Dear Jayachandra,
YES.
ketan kamoya
Dear Sir,
My brother Expire in 2016 during Road Accident while he going to marriage function , I do not withdrawal PF till date, Is that eligible for Life insurance scheme under EPF ? He was working employee during that period.
Basavaraj Tonagatti
Ketan-Yes.
Dhruv Thakkar
Hi, my father expired in Mar’07 while working in private firm and his PF was also getting deducted. Is my mother eligible to get this amount?
Basavaraj Tonagatti
Dhruv-Yes.
Surya Pratap Singh
Sir,
My own Brother’s death case..I applied form no. 5If, 10D& 20.
My brother’s basic salary was only 600rs.He was working in Company last two years. So i got only this much amount EDLI 167000rs & 22365(PF Balance). Sir according to new scheme we are expecting more. what’s your review about EDLI amount??
Surya Pratap Singh
Sorry sir actually basic is 5438rs per month…so please calculate expecting the EDLI amount approx..
Basavaraj Tonagatti
Surya-Hard for me to calculate for each individual. Refer above post to calculate on your own.
Surya Pratap Singh
Sir, we calculated it’s around EDLI Amount is 1 Lakh 67 thousand something.But along this.. is it any bonus amount of 1 Lakh 50 thousand in EDLI process…I have to confirm regarding Bonus is or not??
Basavaraj Tonagatti
Surya-Yes.
Basavaraj Tonagatti
Surya-Please calculate as per above. If you have any issues, then contact the EPFO for the same.
Varun
Is it for only goverment employees or also valid for private companys..
Basavaraj Tonagatti
Varun-It is for all.
Rajput ravi
dear sir
my father wsa joining in ongc in 1992 & expire on 26/11/2011 his basic pay is 21000 rs then i will do a EDLI clame ?
Basavaraj Tonagatti
Rajput-If his death occurred during job, then you can claim for EDLI.
Durga
Hi Sir,
This is Durga from Coimbatore, Tamilnadu. On Jan 28th 2018, My elder brother has been passed away at road accident. I need your guidance on this regard. Please do the needful. I’m waiting for your reply.
Basavaraj Tonagatti
Durga-Approach the concerned EPFO and also his employer immediately.
Amarendra das
I want to know more about EDLI claim????
Basavaraj Tonagatti
Amarendra-All details were explained in above post. If your requirement is related to process, then be in touch with concerned EPFO.
Varun
Hi
I wanted to understand, do i have to opt for this, or is everyone automatically eligible for life insurance under this, and no paperwork is required
Basavaraj Tonagatti
Varun-It is default for all EPF members.
Saidkhan
Dear sir,
My employer has not updated my gender and aadhar card details with EPFO.
Now i am not working with them and doing my own business.
I have left the company in 2016. Now they are reluctant to update it online or offline.
Please suggest how to correct it and update aadhar card with UAN.
Basavaraj Tonagatti
Saidkhan-Try to visit the concerned EPFO and update.
brunda
Dear Sir
This is Brunda, My father’s Average salary is 12217/-
how much amount can i expect
Pl reply me
Basavaraj Tonagatti
Brunda-Refer above post properly for calculation.
jsrinu
Thanks friend very goodness as always
HIMANSHU N SARAIYA
Dear Basavaraj,
In above EDLI Calculation u have mentioned 120000 * 30 times. In EPFO circular it is mentioned Average not Sum, So if we take average of 10000 of 12 months the figure will come 10000 and should be multiplied by 30.
EPFO circular states that average monthly drawn of 12 months.
Please explain if am wrong.
Basavaraj Tonagatti
Himanshu-You are right and I am correcting the same.
HIMANSHU N SARAIYA
Thanks..
Sanket
Thanks Basu.
Very informative, as always.
Basavaraj Tonagatti
Sanket-PLeasure 🙂
Jadhao K T
Good news for EPF member
Basavaraj Tonagatti
Jadhao-Truely.
rajk
Very Beautiful Explanation. Have a Query regarding this insurance applicable if Death occurs with in tenure of service.
and what if in case for both survival or untimely demise occurs Post retirement settlement & withdrawn of total EPF.
Basavaraj Tonagatti
Rajik-Then EDLI will not comes into picture.