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  • Writer's pictureDhruv Parikh

EDLI – Government scheme for life insurance to support family of the deceased

Updated: Jul 25, 2022

The ongoing pandemic has taken a toll on the physical and mental health of everyone. Families who have lost their bread-earner have been impacted the worst. While nothing can replace the loss caused by the death of a loved one, monetary support would help meet the immediate financial needs of the family.

As a part of the Provident Fund (PF) contribution of the employer, 0.5% of the Basic salary is contributed to Employees’ Deposit Linked Insurance (EDLI). The EDLI cover provides life insurance for the deceased person’s family.

In a recent notification, the Employees’ Provident Fund Organization (EPFO) has increased the minimum life insurance to ₹2.5 lakh and the maximum to ₹7 lakh, from the earlier limits of ₹2 lakh and ₹6 lakh, respectively. This has been put into effect retrospectively from 15th February, 2020. This life insurance scheme covers all active members of the employees’ provident fund.

What are the eligibility criteria to claim the benefit of EDLI?

  • The benefit of the scheme is available only to the active members of EPFO.

  • The amount of cover depends on the salary (Basic + Dearness Allowance) and the EPF balance maintained by the employee.

  • The benefit can be claimed by nominees of the EPF member. If there is no nominee, benefit can be claimed by family members. If there is no family member, benefit can be claimed by legal heir.

  • If the person claiming the benefit is a minor, a guardian can do the formalities.

  • There is no minimum service period required for claiming the benefit.

How is the insurance amount calculated under EDLI?

  • The insurance amount that the nominees of a deceased member get is calculated as 35 times the average monthly salary in the last 12 months of employment.

  • The maximum average monthly salary of an employee is capped at ₹ 15,000

  • So, 35 times the salary comes to be around to be 35 x ₹ 15,000 = ₹ 5,25,000

  • A bonus amount of up to ₹ 1,75,000 is also paid to the claimant under this scheme

  • Thus, the total amount payable under this scheme to the beneficiary is ₹ 7,00,000

To be noted:

  • The average monthly salary of the employee may be less than ₹ 15,000. This will reduce the claim amount.

  • Bonus amount is the average of past 12 months’ EPF balance which is capped at ₹ 1,75,000. The actual amount may be lower.

  • The minimum claim limit is ₹ 2,50,000 irrespective of salary and EPF balance.

Which documents are required for the process?

To get the amount disbursed under the EDLI scheme, the person claiming the amount has to furnish the following documents:

  • Form 5 IF – the form required to be filled separately by each nominee to claim the amount. In case of a minor nominee, form has to be filled by the guardian.

  • Death certificate – of the EPFO member

  • Guardianship certificate – if the claim is filed by a guardian for a minor nominee

  • Succession certificate – if the claim is filed for a legal heir

  • Cancelled cheque – of the account in which the amount has to be deposited

  • In case the member was last employed under an establishment exempted under the EPF Scheme 1952, the employer of such establishment should furnish the PF details of last 12 months under the Certificate part and also send an attested copy of the Member’s Nomination Form

What is the process to claim EDLI benefit amount?

  • The form has to be submitted to the regional EPF Commissioner’s office along with the required document proofs.

  • The form has to be signed and certified by the employer.

  • In case there is no employer, the form has to be attested by any one of the following: Gazetted Officer, Magistrate, President of Village Panchayat, Chairman / Secretary / Member of Municipal or District Local Board, Postmaster or Sub Postmaster, MP or MLA, Member of CBT or Regional Committee of EPF, Bank Manager (of the bank in which the account was maintained.

  • The claim has to be settled in 30 days and if the EPF commissioner is not able to settle the claim within 30 days, he will be liable to pay an interest of 12% per annum from the deadline date to the date of actual disbursal.


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