Hi, I am vinod from Andhra Pradesh. What is EDLI? Who will eligible for EDLI? How to apply ? How to withdrawa EDLI?
8th August 2008 From India, Hyderabad


EDLI - Employees Deposit linked Insurance (India Death payment Scheme)

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 contributing 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 2,00,000 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 which will be decided depending upon the group size.

Double accident benefit can be allowed to the extent of the Sum Assured for an extra Premium.

  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.


Karthik J
26th August 2008 From United States, Dearborn
Hi Karthik, Thank a lot for the information.
Can you also help to give the contents of the notice for the knowledge of the employees when we are going in for LIC's Scheme in lieu of EDLI.
7th September 2009 From India, Bangalore
Dear sir,
I would like to state that when an organization is going to take an option of not to pay EDLI amount through EPF but has taken exemption from Central PF Commissioner, of the R.P.F.C. and they grant exemption.
So after getting exemption from R. P. F. C., an organization opt an option of LIC EDLI scheme and made their contribution to LIC department of EDLI amount and PF portion to EPFO organization on regular basis.
Then under that of case whether a nominees of a deceased members under EPF is entitled to claim of EDLI from EPF department upto to Rs 6 Lacs.
Or a nominees of deceased members under EPF are only allowed to claim EDLI from LIC Only.
Or a nominees of a deceased members can go and entitled to claim EDLI amount from EPFO department and LIC department
We are seeking your guidance about the above.
19th April 2017 From India, Ahmedabad
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