Are We Entitled to a Share of Our Late Son's EDLI Benefits Given to His Wife?

Dear Sir,

We, the parents of the only son who was the sole breadwinner of the family and is now deceased, have a concern regarding the distribution of the Employee's Deposit Linked Insurance (EDLI) amount. The company is planning to give the entire sum to the wife, even though we are the nominated recipients. We would like to inquire if we are eligible to claim a portion of the amount and if so, what percentage we may be entitled to.

Your prompt attention to this matter would be greatly appreciated.

Regards,
Old Parents

Please note that EDLI is not paid by the company but by EPFO. Though you are nominated, subsequent to marriage, the wife is entitled to all the benefits paid by EPFO.

Appealing to the PF Authority

If your only son was the sole breadwinner of the family and you were fully dependent on him, you can make an appeal to the PF Authority through your son's employer. If they don't agree, approach the PF Office directly (meet the PRO or the Assistant PF Commissioner of his group) with your son's PF account details. Inform them that you were fully dependent on your deceased son and are also the nominee to the PF.

Although his wife claims to be the legal heir for the insurance money, you may state in your application that your daughter-in-law might remarry after receiving the insurance claim. If your daughter-in-law is a working woman, you may state that she has a source of income. Your case may be considered on humanitarian grounds for some percentage by the PF department.

Who can claim the benefit in EDLI or Employee Deposit Linked Insurance?

This insurance works exactly like term insurance. Hence, after an employee's death, his nominee can claim the amount. Below are a few points to consider:

- A nominee can claim the amount.
- In case there is no nomination, then the legal heir can claim the amount.
- If the nominee or legal heir is a minor, then a guardian of the minor nominee can claim the amount.

Best of Luck,

Suresh