Big Benefit For EPFO Members: Rs 7 Lakh Insurance Cover Explained

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Members of EPFO are protected against losing their incomes by the Employee Deposit Linked Insurance scheme. Simply put, this scheme provides for the financial future of the employee’s family in the event of premature death. The limit for maximum insurance benefit under the scheme has been raised to ₹7 lakhs and must be claimed by the beneficiaries.

Eligibility Conditions For EDLI Insurance 

These provisions hereunder form the grounds under which an insured person would be entitled to an insurance cover for 7 lakh under EDLI scheme:-  

  • It is a prerequisite that an employee should be an active member of the Employees’ Provident Fund (EPF) at the time of death.  
  • The employer has to be making contributions under the EPF and EDLI schemes regularly for the contribution to be entitled to the insured employee.  
  • There is no minimum period of service required for claiming the insurance benefit.  

Advantages Of EDLI Insurance 

  1. The claim of the insurance covers an employee under this scheme, maximum of ₹7 lakh will allow settlement in lump-sum amount to the designated nominee or to a legal heir of the employee in case of death of the employee.  
  2. It does not ask any premium from the employees. These premiums are fully funded by the employer.  
  3. Moreover, this insurance comes over and above another EPF balance and EPS benefits.  

Claiming EDLI Insurance  

This is how the claim is made under the EDLI scheme:  

1. To make a claim: one must complete the Claim Form: To commence the claim, the nominee, legal heir, or other family member has to fill in Form 5 IF.  

2. Documents to be attached with the claim form:  

  • Death certificate of the employee  
  • EPF account number  
  • Aadhaar and bank account number of the nominee  
  • Legal heir certificate if applicable  

3. Submission either to Employer or EPFO Office: Submit the filled form and the documents to the employer of the deceased employee or directly to the EPFO regional office.  

4. After verifying, transfer of the insurance amount to the bank account of the claimant shall be made. 

    Also Read: Good News For Govt Employees: Minimum Pay Increased To Rs 46,000 Under 8th Pay Commission

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