As many people are dying due to COVID-19 in the second wave, the need for insurance benefits come as a great help in these trying time,especially when the head of the household is still working.
Recently the Central Government has enhanced the benefit under the Employees’ Deposit Linked Insurance Scheme (EDLI).
Through a gazette notification dated April 28, 2021, the maximum assurance benefit payable in the EDLI Scheme has been enhanced to Rs. 7 lakh from the earlier maximum benefit of Rs.6 lakh.
Earlier, in September 2015 the benefits under the EDLI scheme was increased from Rs 3.6 lakh to Rs 6 lakh, which got notified in June 2016.
The minimum assurance benefit payable under the EDLI Scheme has been fixed as Rs.2.50 lakh effective 15.02.2020
The benefit payable under EDLI Scheme, 1976 shall be extended to such beneficiaries where the deceased employee was a member of the Fund or a provider fund and was in employment for a continuous period of 12 months preceding the month in which he died, irrespective of change of establishment during the said period.
The membership of EDLI is automatically provided to those covered in EPF.
The EDLI provides insurance cover to be paid to the employee’s nominee on the death of the employee during employment. The claim amount is linked to the average of the provident fund account balance of an employee and is payable to the nominee of the employee.
As the EDLI scheme applies to all employees under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, there is no need to add the nominee separately.
Up to the maximum wage ceiling of Rs 15,000, the employer has to contribute 0.5 percent of the employee’s wages along with administrative charges.