We have discussed the basic contributions of EPF and how the money is invested, contributed and received by the employees. There is a component called EDLIS (Employee Deposit Insurance Scheme) of EPF contributions. We have discussed the features of EDLIS as under:

• The EDLI scheme was launched in 1976, and applies to all employers who provide the Employee’s Provident Fund (EPF) provisions to their employees. The point of the scheme is to provide life insurance coverage to all their employees.
• The EDLI Scheme is clubbed and linked to the EPF Scheme and EPS scheme. All employees who subscribe to the EPF scheme are automatically enrolled in the EDLI scheme.
• All of the employees’ contribution goes towards the EPF scheme. The employees do not contribute towards EDLIS. Contributions are made by the employer.
• EDLI contribution by Employer: 0.50% (subject to a maximum of INR.15,000)

Features and benefits of the EDLI scheme:

• Claim amount under the EDLI Scheme is 30 times the salary. Salary is calculated as (D.A. + Basic Salary).
• A bonus of INR 1,50,000 is also payable along with the claim amount.
• The quantum of coverage is directly linked to the salary of the employee.
• Premium payable is similar for all employees.
• Payments are made by the employer to the Provident Fund Authorities.
• Under Section 17 (2A) of the Act, the employer can opt out of contributing to this scheme if the employer has already opted for a better insurance policy for its employees under a different scheme.
• In lieu of EDLI, the employer can also opt for schemes like the LIC Group Insurance Scheme.

EDLI claim procedure:

• The amount payable can be claimed by the nominee of the employee.
• In case there has been no nominee named, the surviving family members of the deceased can claim the amount.
• Under the claims to be made by surviving family members, claims cannot be made by the oldest son or married daughters whose husbands are still alive.
• In case there is no nominee or eligible surviving family member, the claim can be made by the legal heir.
• In case the nominee, surviving family member, or legal heir is a minor – the claim can be made by the legal guardian.
• In order to initiate the claims process, Form 5(which can be found here http://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form5IF.pdf) should be duly filled out and submitted.
• While filling out the claim, it should be kept in mind that: The EDLI Claims are only admissible if the deceased person was actively employed at the time of death. The application for the claim must be attested by the employer.

In case the employer is not available to attest the claim application, attestation must be done with the official seal of either:

• Gazetted Officer.
• President of Village Panchayat.
• Chairman / Secretary / Member of Municipal or District Local Board.
• Postmaster or Sub Postmaster.
• MP or MLA.
• Member of CBT or Regional Committee of EPF.
• Bank Manager (of the bank in which the account was maintained).
• In order to claim the Provident Fund dues and Pension /
• Form 20:                     http://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form20.pdf)
• Form 10D  http://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form10D.pdf)
•  Form 10C  http://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form10C.pdf)
• Forms should be filled out in block letters
• A cancelled chequeshould be attached with the claim forms.

Documents required for a claim under the EDLI scheme

• Death certificate:of the EDLI member.
• Guardianship Certificate: If the claim is being made on behalf of a minor family member, nominee, or legal heir, the legal guardian must also submit a guardianship certificate.
• Succession certificate: If the claim is being made by a legal heir of the deceased.
• Cancelled cheque:of the bank account of the claimant in which claim funds are to be deposited.

Example Mr. Nath was employed and was actively contributing the EPF, EPS and EDLI schemes. He drew a monthly salary of Rs.15,000. Upon his death, his nominee claimed the EDLI insurance benefit which was equal to (30 x Rs.15,000) + (Rs.1,50,000) = Rs.6,00,000.