Understanding the EDLI Scheme: What Benefits Are Actually Covered?

Dear all,

Hi, everybody,

Today, I have a query to be clarified. Could you please let me know what benefits are covered under the EDLI Scheme? Please reply to me soon.

Regards,
Navaneetha

Hi Navaneetha,

Employees' Deposit-linked Insurance Scheme is for the purpose of providing life insurance benefits to the employees of any establishment or class of establishments to which this Act applies. The EDLI is an insurance scheme that offers a lump sum benefit on the death of the employee based on the provident fund balance to the credit of the deceased employee at the time of his death. The EDLI came into force on August 1, 1976. It is financed by employer contributions of 0.5% of the pensionable salary of total employees for the particular month.

Regards

Dear Navneetha,

EDLI is insurance through PF given to heirs of a deceased employee in case of the death of a member. This amount of insurance given to heirs of the deceased varies from 35k to 60k as per basic. However, we can insure this through LIC, and LIC pays the deceased employee a flat 62k.

Thanks,
JS Malik