Facts about EDLI scheme | Fusion - WeRIndia

Employee Deposit Linked Scheme (EDLI) is a social security that intends to offer required insurance cover to employees of organized sector. The scheme assures a certain sum to the family members of employees in the event of employee’s unforeseen death.  If there is no nominee, all the family members except the major son and married daughter get it.

EDLI is integrated with the employee provident fund (EPF) scheme and subscription to it is automatic. The scheme is applicable to all organizations that are part of the EPF.

The insurance limit in EDLI increased to Rs.6 lakh from Rs.3.6 lakh in September 2014.  Here are some important facts about EDLI scheme.

All the members of EPF are automatically eligible for EDLI.

Employer can choose schemes such as the LIC Group Insurance Scheme under EDLI.

For calculating the average salary, the salary of last 60 months will be considered.

The sum assured value is calculated depending on the average monthly wage and the balance in EPF account.

The claim amount would be equal to the amount 30 times the salary of an individual. The salary includes the basic salary in addition to DA. However, the nominee will be entitled for an upper limit of wage of Rs.15,000 per month and the maximum assured sum will be Rs.3.6 lakh. A bonus of Rs.1,50,000 is also paid along with the claim amount.

To claim the amount under EDLI, the nominee or other family members should submit a specific form with Form 20 and 10D/C to the commissioner via the employer.

All the necessary documents should also be submitted along with the claim form. All details like bank name and address should be filled properly as the payment can be sent to bank directly.

Any discrepancy if found in the claim will be intimated to the applicant. The claim will be settled within thirty days from the date of its receipt.  It not, penal interest will be paid at the rate of 12 per cent per annum by the commissioner.

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