Navigating EDLI Benefits After a Loved One's Passing: What Steps Should I Take?

Sir, my mom joined EPF membership in August 2020 at the age of 61 years as a clerk in a private firm. Before joining this firm, she was not an employee of any other firm nor an EPF member. From August 2020 to September 2021, her EPF contributions were regularly deposited to EPFO every month.

Due to illness, she was admitted to the hospital on 12/10/2021, and unfortunately, she passed away on 13/10/2021. The employer informed me that they and their consultant were not aware of EDLI. They requested me to seek advice from a knowledgeable person. In this situation, how can I, as the nominee, receive EDLI benefits? What is the date of exit in this case - the date of death (13/10/21) or the date of hospital admission (12/10/2021)? How many days of ECR (EPF contribution) did the employer deposit to EPFO - for 11, 12, or 13 days? How many NCP days? Also, which documents are required for EDLI?

Thank you.

Purpose of the EDLI Scheme

The purpose of the EDLI scheme is to offer financial security to the family members of the policyholder (deceased person). Family members include the spouse, unmarried daughter, or male child up to 25 years of age. There is no contribution by the employee to EDLI; the entire contribution is borne by the employer. When the employer deposits PF, the EDLI contribution is included.

Calculation of EDLI

The calculation of EDLI is given below:
{Average Monthly Salary of the Employee for the last 12 months (capped at Rs. 15,000/- p.m.) x 30} + Bonus Amount (Rs. 2,50,000/-). The maximum payout under EDLI is capped at Rs. 7,00,000/-.

Documents Required for EDLI Claim

To process the claim under EDLI, the following documents are to be submitted by the claimant:
- Duly completed Form 5 IF
- Death Certificate of the insured person
- Succession Certificate in case the legal heir files the claim
- Guardianship Certificate if the claim is filed on behalf of a minor by a person other than the natural guardian
- Copy of cancelled cheque for the account in which the payment is to be received

Process for Claiming EDLI Benefits

The benefits can be claimed by the nominee specified by the insured person. If no nominee was registered, then the family members or legal heirs can apply for the same. The EDLI Form 5 has to be duly completed and submitted by the claimant. The claim form must be signed and certified by the employer. The claimant must submit all the documents along with the completed form to the regional EPF Commissioner’s Office for processing the claim. The claimant can also submit Form 20 (for EPF withdrawal claim) as well as Form 10C/D to claim all the benefits under the three schemes: EPF, EPS, and EDLI. Any additional documents required must be furnished at the earliest to process the claim. Once all the documents are provided and the claim is accepted, the EPF commissioner must settle the claim within 30 days from the receipt of the claim. Otherwise, the claimant is entitled to interest at 12% p.a. until the date of actual disbursal.