EPFO provides free insurance under EDLI scheme; here's how to avail it

The Employee Provident Fund scheme comprises three components- Employee Provident Fund (EPF), Employee Pension Scheme (EPS) and Employee Deposit Linked Insurance Scheme (EDLI). While EPF is centered around wealth creation and EPS around pension, EDLI is an insurance scheme for which you don't have to pay premium separately. If an employee dies before the age of 58, their family can claim insurance money through Form-51F. Know how one can claim that money.

The form that one needs to fill for the EDLI scheme is Form-51F. If the EPF subscriber dies untimely, their nominee or legal heir can claim for insurance cover. Photo: PTI/Representational

EPFO: Employee Deposit Linked Insurance Scheme (EDLI) is a free insurance provided by EPFO to all the employees who contribute their funds to EPF. If due to some reason, an EPFO member dies while on the job, their family is eligible to get financial assistance in the form of insurance under the EDLI scheme.

Know features of EDLI

The scheme payment of the benefit amount is 20 times of the wages or based on the deposit in the deceased's provident fund, whichever is less. As per the rules laid out by EPFO, the maximum benefit amount under the EDLI scheme is Rs 3 lakh and an additional 20 per cent of the benefit amount calculated is also paid.

EDLI Nomination

An employee don't have to fill a separate nomination for the EDLI scheme. The nomination filled for EPF works for EDLI as well as EPS.

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EDLI Form

The form that one needs to fill for the EDLI scheme is Form-51F.

If the EPF subscriber dies untimely, their nominee or legal heir can claim for insurance cover.

For this, the age of the nominee should be at least 18 years. In case, the nominee is a minor, the form can be filled by their guardian.

Form-5IF is filled offline

Form-5IF is filled offline. This form has to be submitted to the office of the Regional EPF Commissioner after attestation of the claim for whatever benefits the nominee is entitled to receive in the event of the death of the EPFO member.

In this form, information is sought about the deceased member, like the date of death, name and address of the factory/establishment, PF account number, etc.

Apart from that, some important documents also have to be submitted along with the form, like the death certificate of the EPFO member, the succession certificate and a cancelled cheque, etc.

If the claim is being made on behalf of the guardian of the minor, then guardianship certificate also has to be submitted.

Form-5IF has to be verified

After filling this form, the claimant has to get it verified from the employer/company where the EPFO member was working at the time of their death.

After the verification, the form is submitted.

Such a situation may also arise when the company is closed, in this situation, you can submit it after getting it verified from the officers mentioned here-

Magistrate
Gazetted officer
Chairman of Gram Panchayat where there is no Union Board
Chairman/Secretary/Member of Municipal/District Local Board
Members of Parliament/Assembly
Members of CBT/Area Committee/EPF
Manager of the bank in which you have a bank account
Head of any recognized educational institution.

Who gets benefits of EDLI Scheme

As per the EPFO website, as many as 187 classes of establishment comes under the scheme. Any of these 187 classes of establishments and employing more than 19 persons automatically comes under the purview of the EPF & MP Act 1952. Employees working in such establishments are eligible for the EDLI scheme.

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