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Hidden Life Insurance in Your PF Account!
18 Jul
Summary
- Employees get automatic life cover via EDLI scheme.
- Benefit is payable only after employee's death during service.
- Ensure family knows about UAN and nominee for claims.
The Employees' Deposit Linked Insurance (EDLI) scheme, introduced in 1976, offers a significant life insurance benefit to salaried employees in India, linked to their Provident Fund (PF) accounts. This scheme automatically covers all EPF members without extra enrollment, funded by a small employer premium. The benefit is calculated based on the employee's average monthly salary over the last 12 months, multiplied by 30, with a bonus, capped at ₹7 lakh and a minimum of ₹2.5 lakh.
Eligibility for EDLI extends to nearly all workers in establishments with 20 or more employees, active from the day they join EPF. Crucially, the payout is only made upon the employee's death while in service; it is not available upon resignation or retirement. To claim the benefit, the nominee must first contact the employer, who then files the claim with the EPFO regional office. Online claim submission is also possible via the UAN portal.
Employees must ensure their families are aware of their UAN and have an updated nominee in their EPFO profile. Linking UAN with Aadhaar and bank accounts expedites claim settlements. Regular checks of the EPFO passbook are advised to confirm contribution compliance. This scheme acts as a vital, no-premium safety net, providing crucial financial support to families.
