Hi there,
Is there anyone here who could clarify the differences between the EDLI scheme launched under the Employees' Provident Fund and Miscellaneous Provisions Act and the scheme launched by LIC in relation to the EDLI Scheme?
From India, Lucknow
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3Is there anyone here who could clarify the differences between the EDLI scheme launched under the Employees' Provident Fund and Miscellaneous Provisions Act and the scheme launched by LIC in relation to the EDLI Scheme?
From India, Lucknow
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LIC’s scheme is to be taken separately whereas EDLI of EPF shall be covered automatically. As regards, benefits available to the members, I do not think any difference. Regards, Madhu.T.K
From India, Kannur
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From India, Kannur
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Hi Madhu,
As far as I know, there is a significant difference in the compensation amount received by the employees in the case of death. In the EDLI scheme, dependents of the employee receive approximately Rs 35,000, whereas under the LIC scheme, the same recipients receive an approximate amount of Rs 70,000.
Thank you.
From India, Lucknow
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As far as I know, there is a significant difference in the compensation amount received by the employees in the case of death. In the EDLI scheme, dependents of the employee receive approximately Rs 35,000, whereas under the LIC scheme, the same recipients receive an approximate amount of Rs 70,000.
Thank you.
From India, Lucknow
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EDLI is the abbreviation of Employees' Deposit Linked Insurance Scheme. Here, deposit means the average deposit in EPF. When an employee dies while in service, the family will receive some compensation based on his/her deposit. To claim, the employer has to pay 0.5% as its premium.
Determination of Deposit:
The average deposit of the last twelve months as well as the total service will be calculated, and whichever is less will be taken for the calculation.
Determination of Compensation:
Up to Rs. 50,000/-, he will receive the actual amount. Beyond the first Rs. 50,000/-, he will receive 40% of the rest; subject to a ceiling of Rs. 100,000/-.
Example a): Deposit Rs. 100,000
For the first 50,000 - 50,000, Next 50,000 - 20,000
Total - Rs. 70,000 (will receive the full amount as it does not exceed Rs. 100,000).
Example b): Deposit Rs. 200,000
For the first 50,000 - 50,000, Next 150,000 - 60,000
Total - Rs. 110,000 (will receive Rs. 100,000 only as it exceeds Rs. 100,000).
Example c): Deposit Rs. 300,000
For the first 50,000 - 50,000, Next 250,000 - 100,000
Total - Rs. 150,000 (will receive Rs. 100,000 only as it exceeds Rs. 100,000/-)
However, there are better insurance schemes with the same premium, even without considering the deposits. Some organizations are exempted from EDLI and provide better benefits in lieu of it. Some schemes specify more than Rs. 100,000/- for natural death and double benefits for accidental death.
Therefore, the difference mentioned above is that in EDLI, it depends on the deposit; whereas in insurance, it is not linked to the deposit.
Abbas.P.S, ITI Ltd, Palakkad 678 623.
Ph. +91 9447 467 667
From India, Bangalore
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Determination of Deposit:
The average deposit of the last twelve months as well as the total service will be calculated, and whichever is less will be taken for the calculation.
Determination of Compensation:
Up to Rs. 50,000/-, he will receive the actual amount. Beyond the first Rs. 50,000/-, he will receive 40% of the rest; subject to a ceiling of Rs. 100,000/-.
Example a): Deposit Rs. 100,000
For the first 50,000 - 50,000, Next 50,000 - 20,000
Total - Rs. 70,000 (will receive the full amount as it does not exceed Rs. 100,000).
Example b): Deposit Rs. 200,000
For the first 50,000 - 50,000, Next 150,000 - 60,000
Total - Rs. 110,000 (will receive Rs. 100,000 only as it exceeds Rs. 100,000).
Example c): Deposit Rs. 300,000
For the first 50,000 - 50,000, Next 250,000 - 100,000
Total - Rs. 150,000 (will receive Rs. 100,000 only as it exceeds Rs. 100,000/-)
However, there are better insurance schemes with the same premium, even without considering the deposits. Some organizations are exempted from EDLI and provide better benefits in lieu of it. Some schemes specify more than Rs. 100,000/- for natural death and double benefits for accidental death.
Therefore, the difference mentioned above is that in EDLI, it depends on the deposit; whereas in insurance, it is not linked to the deposit.
Abbas.P.S, ITI Ltd, Palakkad 678 623.
Ph. +91 9447 467 667
From India, Bangalore
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Employees' Provident Funds (Third Amendment) Scheme 2008 - 0.pdf
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952.ppt