EDLI not been paid to eligible Employee - reason - died while NOT IN SERVICE

Dear Seniors, Please let me know what went wrong in this issue and your views in it.
One of employee worked with us for almost 2 Years. Upto 12-5-17, he came to office. On 13-5-17 early morning, he died due to health issue. Since he don't have attendance on 13-5-17, obviously we marked his last date of working as 12-5-17. We updated this date in PF as well as in ESI. In Death Certificate, his date of death is 13-5-17.
When we applied for EDLI, it is got rejected stating that the employee is died while NOT IN SERVICE. I'm not getting proper response or answers from PF Office.
Please give your suggestion...

HIi,
Please note the last working day in case of death is always the date of death. Thus you need to meet the senior govt officials and raise your concern to get the benefit for deceased employee.

Dear Anamika,Without application of mind, you have shown exit as 12/05/2017.What is the reason for EXIT?
Now, issue letter to EPF Department supported by Death certificate intimating that erroneously you have mentioned Date of exit as 12/05/2017.Further, it is a Death while in service.EDLI Claim will be Honoured.please do not waste your time in this portal, go over to concerned PF Department & take up the matter in writing as suggested