Many employees who are employed in the company, most of the employees do not know that they also have an insurance policy which is given by EPFO. We all know that 12% of our money is deposited in EPF and the same by our employer is EPF.
If you want to know about what is employers liability insurance then check out this article.
And also deposited in pension. But apart from this, some contribution is made by the employer which most of the employees are not aware of, and under this, 0.5% contribution is made by the employer under edli (employees diposite linked insurance) insurance under which the employee dies. But his nominee or family members are provided insurance up to ₹ 6 lakh. You can see below how the employee and employer contribute to the epfo.
All employees joining the Employees Provident Fund are covered by EDLI or Employees deposite linked insurance, 1976.
Today in this post, we will know about all these – What is Employee Deposit Linked Insurance Scheme? What type of insurance does EDLI provide? What is the claim amount? What are the options for EDLI? How can one claim from EDL
What is the amount received under Edli?
If at the time of death of an employee at the time of death, then his family members can get an amount of up to ₹ 600000 at the time of insurance, before 2015 this amount was Rs 360000 which has been increased to ₹ 600000 after September 2015. |
What is EDLI
EFFO has an active subscriber base of over 6 crore and directly manages a corpus of over 6 lakh crore. Additionally, more than 2 trillion rebates are managed by establishments or organizations that manage their PF money under the overarching guidance of the EPFO. The Employee Deposit Linked Insurance Scheme is a comprehensive group term insurance.
Some special facts about EDLI-
1. Every employee who is a member of Provident Fund is covered under EDLI.
2. Employee can be anywhere. It is not necessary to be at the workplace.
3. It includes death of the employee irrespective of the cause. There is no exclusion under this policy.
4. Coverage and premium are same for every employee irrespective of age or gender or other factor.
5. Insurance coverage is linked to the salary of the employee, basic + dearness allowance with an upper limit of Rs 15,000.
6. There is no minimum service limit for availing the EDLI benefits.
What is the insurance cover under the Employees Deposit Linked Insurance Scheme?
Currently, only customers working continuously for one year in a single organization are eligible for insurance cover. Earlier its maximum amount was Rs. 3,60000.
But in September 2015, EPFO announced an increase in the maximum amount under its Employee Deposit Linked Insurance Scheme (EDLI) from Rs 3.6 lakh to Rs 6 lakh. And in the present time the sum assured of ₹ 600000 is provided under it, the claim amount of EDLI is determined from the last salary of the employee.
EDLI insurance calculate kaise kare? How to calculate the amount of Edli Insurance?
Under this, the sum insured is calculated according to the basic plus dearness allowance of the employee and the basic salary is multiplied by 30 and a bonus of Rs 1.5 lakh is also given.
If, for example, the basic salary of an employee is ₹ 15000.
30 times salary. (The basic salary for this calculated salary is plus DA or DA).
Thus, the maximum EDLI claim amount will be Rs 6 lakh ((30 x15,000) + 1,50,000].
= 6,00000 rupees.
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How to claim for insurance amount? How to claim for edli insurance? If an employee has completed his tenure of 1 year and dies due to accident, then his nominee or family member while filling his PF form should fill the form-5IF with him and attach the person’s death certificate and submit it to the epfo office You can claim for the insurance amount and also the employer has to submit the home EPF for the claim under it and the payment is deposited in the bank account by the EPFO within 30 days.