LigyJose Started The Discussion:
Dear All,
Can anyone please tell me whether there is any limit towards the amount that a dependant will get under EDLI. Actually, can anyone explain the EDLI scheme especially the calculation part of it with an e.g. I have seen few posts with regards to EDLI, but still I have some clarifications.
Please help!!
Ligy Jose
24th October 2007 From India, Mumbai

At my company which has Trust and deed with LIC of India for EDLI,Gratuity,Superannuation,LeaveEnchashment, and as per the Group Insurence Scheme in lieu of EDLIS,1976 with LIC,
(1)uniform coverage of Rs.62000/- for each member.
(2) AN insurence coverage with a minimum of Rs. 5000/- & Maximum Rs.62000/- (in multiplies of Rs1000/-) based on estimated PF balances,in such a way that the Insurence Coverage,shall in no case be less than what is payable under EDLIs of 1976 increased by a sume of atleast Rs.2000/-.
24th December 2008 From India, Ahmadabad
What is EDLI ?

All employees to whom the Employee's Provident Fund and Miscellaneous Provision Act , 1952 applies, have a Statutory liability to subscribe to Employee's Deposit Linked Insurance Scheme, 1976 to provide for the benefit of Life insurance to all their employees. Under the scheme as amended with effect from 24th June,2000 the insurance benefit is equal to the average balance to the credit of the deceased employee in the Provident Fund during the last 12 months, provided that where such balance exceeds Rs.35,000, insurance cover would be equal to Rs.35,000 plus 25% of the amount in excess of Rs.35,000 subject to a maximum of Rs.60,000. Thus if the lenth of service is not adequate and/ or the salary is low the average balance may be substantially less and such the benefit to the employee's family is either inadequate or non-existent.

The contribution @ 0.50% of each employee's salary is payable by the Employer to the Provident Fund Authorities.


However, under Sec. 17(2A) of the act, the employer may be exempted from consulting to this scheme, if he/she has provided for better insurance benefits through alternative scheme. LIC's Group Insurance Scheme in lieu of EDLI has been accepted as one such better alternative.


1. The premium payable by the employer is usually less than the total contribution being paid by the employer to R.P.F.C; particularly when the salary level is high and average age of the group is low.

2. Settlement of claim is quicker, LIC requires only the death certificate and the Claim Form from the employer.

3. Premium paid by the employer is treated as normal business expenses for Income-Tax purpose.


Each employee is covered for a sum assured ranging between 5,000 to 62,000 depending upon the current salary and service put in from day one irrespective of the actual balance in the Provident Fund. Alternatively every employee/ worker can be covered for a uniform sum assured of Rs.62,000.


Double accident benefit can be allowed to the extent of the Sum Assured for an extra Premium @ Rs.0.75 per thousand Sum Assured per annum. Double accident cover under all group Schemes taken together should not exceed Rs.4.5 lacs.


1. Put up notice for the knowledge of the employees that you are going in for LIC's Scheme in lieu of EDLI.

2. Apply to the Regional Provident Fund Commissioner under Sec.17 (2A) of the E.P.F. and M.P. Act 1952 to exempt you from EDLI Scheme. The application should be accompanied by the prescribed requirements including the Rules of the Proposed Group Insurance scheme. Central PF Commissioner, has authorized the R.P.F.C. to grant exemption from the 1st of the month in which the application for relaxation is submitted. LIC also offers necessary guidance to the employers for seeking relaxation.
27th December 2008 From India, Jaipur
Life insurance benefits to Pension Fund employees increased to Rs.1lakh under Deposit linked Insurance scheme (EDLI)
EDLI Scheme amended: In effect, on death during employment, Family member/nominee will get the following:
  • if Average balance is more than Rs.50,000/-
  • then Insurance Amount = Rs. 50,000/- + 40% (Excess), subject to Rs. 1,00,000/-
Find details in Life insurance benefits to Pension Fund employees increased to Rs.1lakh under Deposit linked Insurance scheme (EDLI) ~ See Yes -> Yes, ACS
30th June 2010 From India, Madras
With the consent of ANURAJ JAIN, i amend his comments to be in line with latest amendents. EDLI notified in gazatte on 18.06.2010 to enchanse the limit from Rs.62,000/- to
2nd July 2010 From India, Tiruchchirappalli
Based on the new amendment, I shall make a brief and method of calculation on EDLI.

EDLI is the abbreviation of Employees' Deposit Linked Insurance Scheme. Here deposit means average deposit in EPF. When an employee dies while in service, family will get some compensation based on his/her deposit. To get the claim, the employer has to pay 0.5% as its premium.

1. Determination of Deposit.

Average of deposit of last twelve months as well as total service, will be calculated and whichever is less being taken for the calculation.

2. Determination of Compensation.

Upto Rs. 50,000/- he will get actual. Beyond first 50,000/- he will get 40% of the rest; subject to ceiling of Rs. 100,000/-.

Eg. a) Deposit Rs. 100,000

For 1st 50000 - 50000, Next 50000 - 20000

Total - Rs. 70,000 (will get full amount as it is not more than 100,000).

Eg. b) Deposit Rs. 200,000

For 1st 50000 - 50000, Next 150,000 - 60000

Total - Rs. 110000 (will get Rs.100,000 only as it ecxeeds 100,000).

Eg. c) Deposit Rs. 300,000

For 1st 50000 - 50000, Next 250,000 - 100,000

Total - Rs. 150,000 (will get Rs. 100,000 only as it exeeds 100,000/-)

But there is better Insurance schemes with the same premium, even without cosidering the deposits. With this type of better benefits, some of the organisations are exempted from EDLI. Instead they are providing in lieu of EDLI. There are schemes which specifies more than 100,000/- for natuaral death and double benefits for accidental death.

Abbas.P.S, ITI Ltd, Palakkad 678 623.

Ph. +91 9447 467 667
21st August 2010 From India, Bangalore
I want to know that when employee is eligible for the same, How many service (minimum) required to get the benefit of the same scheme
4th September 2010 From India, Ahmadabad
EDLI is the insurance cnverage on EPF. When a PF member dies, his family will be eligible for this benefit. To get the benefit only one day attendance is required, after enrolling EPF/EDLI by filling Form 5.

5th September 2010 From India, Bangalore
Dear All I want to know that i have EDLI Policy from LIC after will be deduct admin charge in a/c 21 Or Not Pls Rpl soon.............. Sudheer
17th September 2012 From India, New Delhi
I would like to add that the Amendment of EDLI vide GOI notification dt 8.1.2011 has mandated that the calculation of benefit would be entitiled to receive in addition to his accumulation of PF,average monthly wages drawn(subject to a maximum of Rs. six thousand five hundred)during the twelve months immediately preceding the month in which he died,multiplied by twenty times or;
(ii) the amount of benefit under sub para(1),whichever is higher.
The amount in sub para (1) is the amount that was amended vide notification dt 18.6.2010 i.e. Rs.One lakh.
The impact of this amendment appears that the benefit has been revised to 6500X20= 130000.For an exempted establishment ,the insurance cover has to be equal to or exceed this amount.Thus ,the policy coverage revision appears necessary for such establishment.I invite confirmation of the above position from the experts.
30th October 2012 From India, Jabalpur

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