How Do We Transition EDLI Payments from LICI to Direct Provident Fund? Seeking Guidance!

Now we are maintaining the EDLI part of the Provident Fund with LICI and paying a yearly premium to LICI for it. Currently, we have decided to make the EDLI payment directly through the Provident Fund. What is the procedure? Please guide.

Regards,
Tarak Shaw

There is no provision under EPFO to avoid EDLI payment for unexempted establishments. If the establishment is maintained by a trust PF, then get in touch with trust rules.

Mr. Shaw,

You can discontinue the EDLI policy with LIC at any time and start remitting contributions to EPF, but it is better to do so when the renewal is due with LIC.

P. K. Sharma

Dear Mr. Shaw,

According to me, you can discontinue the EDLI policy from LIC or any other agency. The LIC or agency will refund the proportionate amount. You have to submit a letter to the PF office regarding the discontinuation of the EDLI policy (letter sent to LIC/Agency for discontinuation) along with the list of employees, UAN, DOB, DOJ, wages, etc. While submitting the letter, be sure that the documentation of exemptions is complete, i.e., every 3 years renewal of exemption, etc.

Thanks,
Vidyadhar Bhat

Dear all,

How is the EDLI payment made to the nominee in the case of an employee's death? Is it a one-time payment option, or will it be paid on a monthly basis?

Thanks,
Nikithaa