Features of EDLI Scheme in EPF | Death claim Insurance Calculation

What is EDLI Scheme?

Employees Deposit Linked Insurance Scheme is an insurance cover for the workers, providing by Provident Fund Organization for salaried employees
The listed nominee receives a lump-sum compensation in case death of the person insured, during the service
This scheme is attached with EPF and EPS schemes

Features of Employees Deposit Linked Insurance Scheme

EDLI applies to all workers with a gross salary under Rs. 15,000/- per month
If the gross salary above Rs. 15,000 per month, the utmost benefit is roofed at Rs. 6,00,000/-
There is a plus of Rs. 1,50,000/- under the EDLI as a bonus
An employer can choose for an additional insurance scheme, but the advantages offered must be adequate to or quite EDLI Scheme
As per the scheme of the EDLI, the contribution of an employer must be 0.5% of the wages or a maximum of Rs. 75 per employee per month

Calculation of EDLI

Here wages definition is gross salary- HRA – variable Component= PF Wages
The registered nominee will receive a lump-sum payment within the event of the death of the insured
If no nominee or beneficiary is registered, then the quantity would be paid to the legal heir

The pay-out to be awarded are going to be calculated as under:

Average Monthly wages of the worker for the last 12 months (covered at 15,000/- p.m.) x 30
+50% of last 3 years’ contribution in EPF scheme by employee (Maximum bonus 1,50,000)
Therefore, the utmost disburse under EDLI is capped at Rs. 6,00,000/-

Documents required

To procedure the claim under EDLI, following documents are to be submitted by the applicant: –

Accordingly Completed Form 5 IF
Death Certificate of the insured
Succession Certificate just in case the legal heir files the claim
Guardianship Certificate if the claim is filed on behalf of a minor by an individual aside from the natural guardian
Copy of cancelled cheque for the account during which the payment is to be received

How to claim the EDLI benefits?

The procedure to be followed by the claimant to receive the quantity under EDLI is as follows:

The benefits are often claimed by the nominee identified by the insured . If no nominee was registered, then the relations or legal heirs can apply for an equivalent
The late person should are a lively contributor to the EPF scheme at the time of his/her death
EDLI Form 5 IF has got to be duly completed and submitted by the claimant
The form has got to be signed and authorized by the employer

If there’s no employer or the signature of the employer can’t be found, the shape must be attested by any of the following:

Bank manager (in whose branch the account was maintained)
Local MP or MLA
Gazetted Officer
Magistrate
Member/Chairman/Secretary of Local Municipal Board
Post Master or Sub-Postmaster
Member of the regional committee of EPF or CBT
The claimant must submit all the documents along the finished form with the regional EPF Commissioner’s Office for processing of the claim
The claimant also can submit Form 20 (for EPF withdrawal claim) also as Form 10C/D to say all the advantages under the three schemes, EPF, EPS and EDLI)
Any additional documents required must be provided at earliest to process the claim

Once all the documents are provided and therefore the claim is accepted, the EPF commissioner must settle the claim within 30 days from the receipt of the claim. Otherwise, the claimant is entitled to interest @12% p.a. Till the date of actual disbursal

Composite Claim Form in Death Cases -20/10D/5 IF

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