Up to Rs 7 lakh insurance cover for every salaried employee:
How family of deceased EPFO member can claim this EDLI cover amount
Nov 7, 2025
Synopsis
The Employees’ Deposit Linked Insurance (EDLI) Scheme offers lump sum death benefits to private sector employees, ranging from Rs 2.5 lakh to Rs 7.5 lakh. Recent amendments ensure a minimum of Rs 50,000 even for early deaths and consider gaps in service continuity for eligibility.
The Employees’ Deposit Linked Insurance (EDLI) Scheme aims to provide insurance benefits to private sector employees. It is administered by the Employees’ Provident Fund Organisation (EPFO). Under the EDLI Scheme, the legal heir or nominee of an employee receives a lump sum payment in event of the employee’s death during the service period.
What is the minimum and maximum benefit available under the EDLI scheme?
The assurance benefit shall not be less than Rs 2.50 lakh and the maximum should not exceed Rs 7.50 lakh, as per the ELDI document available on the EPFO website.
What is the minimum benefit available under the EDLI scheme if an employee dies early?
A minimum life insurance benefit of Rs 50,000 is provided in cases where an EPF member dies without completing one year of continuous service. It was an amendment made in February this year. The Ministry of Labour & Employment has said that the amendment is expected to result in higher benefits for more than 5,000 cases of deaths in service, every year.
Benefit for members who die while in service after a non-contributory period
If a member passes away within six months of his last contribution received, the EDLI benefit is admissible, provided the member’s name is not stuck off from rolls. As per the Ministry, previously, EDLI benefits were getting denied in such cases considering these as death away from service.
Consideration of service continuity
After the amendment in the EDLI scheme, a gap of up to two months between two spells of employment is now considered as continuous service, ensuring eligibility for higher quantum EDLI benefits.
Earlier, a gap of even one or two days (such as weekends or holidays) between employment in two establishments led to the denial of minimum EDLI benefits of Rs 2.5 lakh and maximum of Rs 7 lakh, as the condition of continuous service of one year was not met.
How can a nominee claim for benefits under the EDLI scheme offline?
According to the Employees' Deposit Linked Insurance Scheme (EDLI), 1976 scheme, "The nominee or nominees or other claimants shall send a written application to the commissioner through the employer in such form as the commissioner may specify, to claim payment under this Scheme. The payment may be made, at the option of the person to whom the payment is to be made through electronic or the digital fund transfer system in any Scheduled Commercial Bank or any post office. The claims, complete in all respects submitted along with the requisite documents shall be settled and the benefit amount paid to the beneficiaries within twenty days from the date of its receipt by the Commissioner."
How to file a claim for EDLI scheme?
The nominee has to submit Form 5 IF, which is to be filled separately by each claimant. In case the claimant is minor, it should be filled by the guardian on his/her behalf. Where there are more than one minor, the guardian should claim in one form on their behalf.
[The Economic Times]
