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The claim amount under EDLI is 35 times the average monthly pay for the previous 12 months, up to a maximum of Rs 7 lakh. Image: Freepik
Employees' Provident Fund Organisation (EPFO) provides insurance of up to 7 lakh to its members who contribute to the EPF regularly. The scheme under which insurance is provided is called the Employees Deposit Linked Insurance (EDLI) scheme. This applies to all the employees whose basic salary is under Rs 15,000.
However, if a member's basic salary is more than Rs 15,000, the insurance maximum benefit will be Rs 6 lakh. The scheme helps EPFO member's families financially.
The insurance amount depends on the basic salary and DA of the last 12 months. The claim for insurance coverage will be 35 times the last basic salary + DA. Apart from this, a bonus amount of up to Rs 1,75,000 is also paid to the claimant. For example, if the basic salary + DA of an employee for the last 12 months is Rs 15,000, then the insurance claim amount will be (35 x 15,000) + 1,75,000 = Rs 7,00,000.
If the EPF subscriber dies untimely, his nominee or legal heir can claim insurance coverage. For this, the age of the nominee should be at least 18 years. If it is less than this, the parents can claim on his behalf. While making a claim, documents like a death certificate and succession certificate are required. If the claim is being made on behalf of the minor's guardian, then a guardianship certificate and bank details will have to be given.
