EPFO's free life insurance scheme: Get up to ₹7 lakh coverage

New Delhi (Uttam Hindu News) – The Employees' Provident Fund Organization (EPFO) offers its members not only pension and savings benefits but also the security of free life insurance. This benefit is offered under the Employee Deposit Linked Insurance (EDLI) scheme, which provides insurance coverage to employed individuals at no additional cost.

The employee doesn't have to

pay a single rupee under this scheme. The employer bears the entire expense. The sum insured is calculated based on the employee's basic salary. Under this scheme, the insurance cover is provided for a minimum of ₹2.5 lakh and a maximum of ₹7 lakh.

What is the EDLI scheme?

The EDLI scheme was launched in 1976. It is one of the three major schemes of the EPFO ​​(EPF, EPS, and EDLI). Under this scheme, if an employee dies while on the job, his or her nominee is paid a lump sum insurance amount.

Key Benefits of the EDLI Scheme

All employees earning ₹15,000 per month or less are eligible for this scheme.

The sum insured is calculated as 35 times the employee's average salary for the previous 12 months.

The claim amount cannot be less than ₹2.5 lakh and cannot exceed ₹7 lakh.

A bonus of ₹1.5 lakh is also included under the scheme.

The insurance premium is fully paid by the employer.

How to file an EDLI claim?

The nominee must fill out Form 5IF. This must be verified by the company (in case of a defunct company, by a gazetted officer). Submit the form to the relevant EPFO ​​office. Once the claim is approved, the amount is transferred to the nominee's account within 30 days.