Employees' Provident Fund Organisation (EPFO), the retirement fund body, also offers an insurance cover to its subscribers apart from providing investment option to salaried individuals. EPFO's employees' deposit-linked Insurance (EDLI) scheme offers insurance with death benefit of up to Rs 7 lakh. The minimum death insurance benefit was increased, earlier this year, to Rs 2.5 lakh and maximum to Rs 7 lakh. The earlier limits were Rs 2 lakh and Rs 6 lakh respectively.
Here are key things to know about Employees' Deposit-Linked Insurance (EDLI) Scheme:
- The insurance cover is given to the family of the beneficiary of the EDLI scheme in the event of his or her death while in employment, the retirement fund body said on its website.
- The benefits under the scheme are applicable to the subscriber if he or she was a member of the EPFO or of a provider fund, exempted under Section 17 of the EPF & MP Act aid.
- The EDLI scheme was implemented as part of the Employees' Provident Fund and Miscellaneous Provisions Act (EPF and MP Act), 1952. The scheme an insurance cover provided by the EPFO for private sector salaried employees
- All employees who get a basic salary under Rs 15,000 per month are eligible for availing the EDLI scheme. As per the provisions of the EDLI, the contribution of an employer must be 0.5 per cent of the basic salary or a maximum of Rs.75 per employee per month. If the employer does not have any group insurance in place, then the maximum contribution is limited to Rs 15,000 per month.
- In case of the death of a member, the family gets insurance of up to Rs 7 lakhs under the EDLI scheme and monthly widow/child/orphan pension under the EPS scheme.
- If there is no employer or the signature of the employer cannot be obtained, then the form must be attested by a local Member of Parliament (MP) or Member of Legislative Assembly (MLA) , gazetted officer, magistrate, member or secretary of the local municipal board or from a member of the regional committee of EPF or CBT.