Employees enrolled with the Employees’ Provident Fund Organisation (EPFO) are automatically covered under the Employees’ Deposit Linked Insurance (EDLI) scheme, which provides life insurance coverage of up to Rs 7 lakh to nominees in case of the member’s death during service. The scheme works alongside the EPF and EPS benefits and does not require any separate premium payment from employees.
The EDLI scheme is available to all employees who are active EPF members in establishments registered with EPFO. Since the employer contributes to the scheme, employees receive insurance protection without making any additional financial contribution. The benefit is designed to provide financial support to families of salaried workers, especially in the private sector.
The insurance payout amount depends on the employee’s last drawn salary and the balance in the provident fund account, subject to the maximum limit of Rs 7 lakh. Even if an employee changes jobs, the EDLI coverage continues as long as the EPF account remains active without a long break in contribution.
To claim the EDLI benefit, the nominee or legal heir must submit Form 5 IF along with required documents, such as the death certificate, bank details, and identity proof, through the employer or directly to the EPFO office. Once verified, the EPFO processes the claim and releases the insurance amount to the nominee.
The EDLI scheme remains one of the less-known but important social security benefits available to EPF members, providing financial protection to families without any extra cost to employees.
