Claiming Employees’ Deposit Linked Insurance (EDLI) and Employees’ Provident Fund (EPF) benefits

The Employees’ Deposit Linked Insurance Scheme (EDLI) was enacted by the Central Government while exercising the powers under Section 6(c) of the Employees’ Provident Fund (EPF) and Miscellaneous Provisions Act, 1952. Launched in 1976, this Scheme provides life insurance benefits to employees who are members of the Employees’ Provident Fund Organization (EPFO). Here, it must be noted that all organizations covered under the Employees’ Provident Fund (EPF) and Miscellaneous Provisions Act, 1952 get enrolled for EDLI automatically as the Scheme works in combination with Employee Provident Fund (EPF) and Employee Provident Scheme (EPS). The main aim of the EPFO while launching the EDLI was to ensure that the family members of the employee get financial assistance in case of his or her death.

Benefits

One must remember that a nominee or legal heir of an active member of EPFO gets a lump sum payment of up to Rs. 6, 00,000/- in case of death of the member during the service period. Also, the insurance cover depends on the salary drawn in the last 12 months of employment before death. Further, it is pertinent to note that the employer has to contribute 0.5 % of the total wages of the employees and the employee does not contribute any amount to the Scheme.

Eligibility Criteria for EDLI

The following persons are eligible to claim insurance benefits under the EDLI Scheme:

1. Members of the family (nominees) nominated under the EPF Scheme
2. In case of no nomination, all members of the family, except major sons, married daughters with major sons, and married grand-daughters
3. In case of no family, and no nomination, the legal heir
4. Guardian of a minor nominee or family member or legal heir 

Documents Required to Claim EDLI Benfits 

The claimant has to submit the following documents to the Regional EPF Commissioner’s Office to get the amount disbursed under the EDLI Scheme:

1. ‘Form 5 IF’ is to be filled separately by each nominee or claimant after the death of the member-employee. In case of a minor claimant, the guardian can fill the form on his behalf.
2. Death Certificate of the member
3. Guardianship Certificate if the claim is filed on behalf of a minor nominee and by a person other than the natural guardian
4. Succession Certificate in case of a claim by the legal heir
5. Copy of a cancelled cheque 

Process to claim EDLI Scheme’s benefits

The procedure to claim the benefits under the EDLI Scheme is easy. One can follow this step-by-step guide to claim the benefits under the EDLI Scheme:

Step 2 - Fill necessary form

The EDLI Form 5 IF has to be duly filled and submitted by the claimant. The claim form must be signed by the employer as well. However, if the signature of the employer cannot be obtained, the form can be attested by any of the following: 

1. Bank manager of the branch where the account was maintained
2. Local MP or MLA
3. Gazette Officer
4. Magistrate
5. Member or Chairman of the Local Municipal Board
6. The Post Master or Sub-Postmaster
7. Member of the Regional Committee of EPF 

Step 2 - Form and Documents submission

The claimant should submit the form along with all the necessary documents, at the Regional EPF Commissioner’s Office. Also, additional documents, if required, must be furnished to process the claim. 

Upon successful submission of documents, the claim is accepted and the EPF Commissioner settles the claim within 30 days from the receipt of the claims.

Here, it must be duly noted that if the claim is not settled within 30 days, the EPF Commissioner is liable to pay an interest of 12% per annum from the date of deadline to the actual date of disbursal.