Employees Deposit Linked Insurance Scheme: Calculation of assurance benefit under EDLI Scheme

The Employees' Provident Fund Organisation has observed various cases in which beneficiaries get relatively little money in the settlement of Employees Deposit Linked Insurance Scheme (EDLI) claims of deceased members..

It is mandated that specifically in EDLI cases where the amount payable to the beneficiary of a deceased member is less than the Rs 2.5 lakh minimum assurance benefit, it be ensured from MIS that the service rendered by the members under different MIDs, if any, have been transferred and taken into account for the computation of the payable benefit, stated an EPFO circular issued on November 25, 2023...

Where a Provident Fund account has not been transferred during the life time of the member on account of non-submission of transfer application or for any other reason, and if it is brought to the notice of Regional Provident Fund Commissioner about the earlier Provident Fund membership, the Regional Provident Fund Commissioner may arrange to get the account transferred from other Regional Office/Sub-Regional Offices without insisting for a transfer application and settle the deceased member's account."..

As per the notification, Due to this amendment in EDLI Scheme, it has become even more crucial to ensure verification, flagging and merging of previous membership under a (JAN to the present PF account so that the deceased worker's family are not deprived of the eligible EDLI benefits stipulated as per the EDLI amendment...

A maximum assured benefit of Rs 7 lakh would be paid to the nominee or legal successor of an EPF member who dies while in service.The minimum guarantee benefit under the EDLI scheme 1976 is Rs 2.5 lakh if the dead member remained in continuous employment for 12 months prior to his or her death.This life insurance benefit provided to EPFO members is provided at no cost to PF/EPF account holders..

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