How To Make Claims Under The Employees’ Deposit Linked Insurance Scheme(EDLI) Scheme?
The Employees’ Deposit Linked Insurance Scheme (EDLI) provides life insurance to employees. A nominee or legal heir can claim the insurance through Form 51F.
The Employees’ Deposit Linked Insurance Scheme (EDLI) provides life insurance to employees. A nominee or legal heir can claim the insurance through Form 51F.
Employee's Deposit Linked Insurance Scheme
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The Employees’ Deposit Linked Insurance Scheme (EDLI) comes under the Employees’ Provident Fund Organisation (EPFO) purview. Any organisation employing 20 or more employees must offer Employee Provident Fund (EPF) benefits to its employees, and those who are members of EPFO become eligible for EDLI benefits automatically. As per the latest EPFO data, there are around 27.74 crore EPF accounts.
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In EDLI, the employer contributes 0.50 per cent of the employee’s basic salary plus a dearness allowance of up to Rs 15,000. To avail of the benefits, the employee must work for at least 12 months in the organisation and be an active EPF member. The insurance cover remains applicable even if the employee changed jobs in the last 12 months before death.
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If the employee dies during service, a lump sum of up to Rs 7 lakh and a minimum of Rs 2.5 lakh is paid to the beneficiary. The claim amount is calculated based on the last 12 months’ salary along with a certain percentage of the monthly average salary in the previous year.
Step 1: First, visit the EPFO members portal online.
Step 2: Click on the ‘Death claim filing by beneficiary’ on the bottom right of the page.
Step 3: The new page will open. Fill out the beneficiary name, date of birth, Universal Account Number (UAN), and Aadhaar number, and enter the captcha in the box.
Step 4: Click on ‘Get Authorization Pin’. Enter the PIN received on the beneficiary’s Aadhaar-linked mobile number and submit.
Step 5: Fill out bank details and attach documents such as a death certificate, cancelled bank cheque or passbook copy, and beneficiary’s proof of date of birth, then submit to the EPFO.
Note that EDLI benefits can be claimed provided the member was working with an EPF-registered firm at the time of death. Otherwise, the family members will not receive EDLI benefits.
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In UPS, the government can also change its share by reviewing every three years, but no change will be made in the employees' 10 per cent share.
Employees can withdraw funds from the employees’ provident fund (EPF) while leaving the organisation under certain conditions. Follow these points to avoid claim rejection.
Effective September 1, 2014, the maximum pensionable salary was increased to Rs 15,000, and the employers were required to contribute 8.33 per cent to the EPF.
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