EPFO Members Can Claim Up to ₹7 Lakh Insurance Cover at No Extra Cost

Employees covered under the Employees’ Provident Fund (EPF) are also eligible for life insurance under the Employees’ Deposit-Linked Insurance (EDLI) Scheme.

The scheme offers insurance coverage of up to ₹7 lakh without any additional employee contribution. The benefit is paid to the nominee if the employee dies while in service.

What is the EDLI Scheme?

The Employees’ Deposit-Linked Insurance (EDLI) Scheme is managed by the Employees’ Provident Fund Organisation (EPFO). It provides life insurance cover to EPF members working in the private sector.

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Employees do not have to pay any premium. The employer contributes 0.5% of the employee’s basic salary, up to a maximum of ₹75 per month.

Insurance Benefit

Notably, eligible EPF members are auto-enrolled in the EDLI scheme at no additional cost if more than 20 employees from a firm opt for it. The maximum insurance amount under the scheme is ₹7 lakh.

The amount is calculated based on the employee’s average basic salary and dearness allowance (DA) during the last 12 months of service, subject to a salary ceiling of ₹15,000 for calculation purposes. The payout also includes an additional bonus of ₹2.5 lakh.

If an employee dies before completing one year of continuous service, the nominee is eligible for a minimum insurance amount of ₹50,000.

Who Can Receive the Benefit?

The insurance amount is paid to the employee’s registered nominee or legal heir if the employee dies while in service.

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Employees should ensure that their EPF nomination details are updated, especially after marriage or any change in family details.

Employer’s Contribution

Scheme	Employee Contribution	Employer Contribution
EPF	12% of Basic + DA	3.67% of Basic + DA
EPS	—	8.33% of Basic + DA
EDLI	—	0.5% of Basic Salary (Maximum ₹75 per month)

How to Claim the Benefit

The nominee or legal heir has to submit Form 5 IF along with the required documents. The form should be certified by the employer. If this is not possible, it can be attested by authorised officials such as a bank manager, gazetted officer, magistrate, MP, MLA or postmaster.

The claim should be submitted to the concerned EPFO regional office. Claimants can also submit Form 20 and Form 10C/10D to claim EPF, EPS and EDLI benefits together.

EPFO is required to settle the claim within 30 days. If there is a delay, interest at 12% per year is payable until the claim is settled.

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