Most of the EPF members are not aware that the investment in EPF provides you with an insurance cover which is a part of the Employee Deposit Linked Scheme (EDLI).
In September 2014, the department Employees' Deposit Linked Insurance Scheme (EDLI) increased the insurance limit.
EDLI is a social security scheme which provides an EPF member with necessary cover to the family of employees.
Here are 7 important features of the scheme
1. The insurance limit is increased to Rs 6 lakh from the earlier Rs 3.6 lakh. All EPF members are automatically eligible for EDLI.
2. The pensionable salary will be calculated on the basis of an average salary of the last 60 months instead of 12 months.
3. The nominee will be eligible for a wage ceiling of Rs 15,000 every month, the maximum amount assured will be Rs 3.6 lakh.
4. The insurance is also eligible for a bonus of Rs 1,50,000 which will also be paid along with claim amount.
5. Under the scheme, the employer can also opt for schemes like the LIC Group Insurance Scheme.
6. In the event of death, the sum assured value is computed or decided based on the average wage on a monthly basis and average balance in EPF account.
7. The claim amount would be 30 times the individual's salary. This includes Basic pay plus DA or Dearness Allowance. While, the upper limit of wage for the EDLI is Rs 15,000.
How to claim for insurance under the EDLI scheme?
The nominee or other claimants should submit a written application along with Form 20 and 10D/C to the commissioner through the employer in such form as the commissioner may specify, to claim payment under this scheme.
The claims should be submitted along with the required documents and benefit amount shall be paid to the beneficiaries within thirty days from the date of its receipt.
Make sure to enter correct bank details such as name, branch and address as payment can be sent to the bank directly and cancelled cheque can be attached.
If there is any discrepancy in the claim, the same will be informed and communicated to the applicant within thirty days from the date of receipt of such application.
If the commissioner fails to settle a claim complete within thirty days, the commissioner will be liable for the delay beyond the set period and liable to pay penal interest 12% per annum from his salary.