Most people working in the private sector do not know that they can get life insurance cover worth lakhs of rupees without spending a single penny. It does not require any investment; In fact, you get a life insurance cover of up to ₹7 lakh without paying any premium.
This benefit is available only to EPFO members – from whose salary PF contributions are deducted every month. If PF is deducted from your salary every month, then you are eligible for this free life insurance. There is only one condition that the nominee information in your EPF account should be correct and updated. Let us now understand in detail how you can avail this benefit. The Employee Provident Fund Organization (EPFO) offers the benefit of Employee Deposit Linked Insurance (EDLI) scheme to its members. This is a kind of life insurance cover which provides financial assistance to the family or nominee of the employee in case of death while on the job.
What is EDLI Scheme and what are its benefits?
This scheme is run by EPFO and is available only to EPF members. In case of death of an EPF member while in service, the insurance is paid immediately to his nominee or legal heir. The most important thing is that no premium has to be paid for this insurance; The entire expense is borne by the employer or company. As a result, all eligible employees linked to EPF are automatically covered under the scheme.
What is the limit of insurance cover?
If you are an EPF member working in the private sector, you automatically become eligible for this scheme. It provides a maximum cover of ₹7 lakh, and a minimum of ₹2.5 lakh is paid depending on certain conditions. The exact amount is decided on the basis of the employee’s salary and the average balance in his PF account.
Who is eligible for this benefit? In case of death of the employee while on the job, this benefit is given to the nominee registered in the EPF account; If there is no nominee, it goes to the family member or legal heir, or to the guardian if the beneficiary is a minor.
How to claim EDLI?
1. Prepare necessary documents
Form 5IF (EDLI Claim Form)
death certificate
Identity proof of nominee/claimant
Bank account information (passbook or canceled cheque)
UAN or EPF member information
Succession Certificate (in case there is no nominee)
2. Submit the form
After verification of the form by the previous employer, it can be submitted to the regional EPFO office. In many cases, online claim facility is also available.
3. Payment
After verification of documents, the amount is transferred directly to the nominee’s bank account. Generally, the claim is settled in about 30 days.
Not just the nominee – this step is also important
It is worth noting that EPFO has recently warned that merely filing e-nomination is not enough. It is also necessary to e-sign it using Aadhaar; Otherwise, the nominee may find it difficult to avail the benefits of PF, pension and EDLI.