EDLI (Employees’ Deposit Linked Insurance)

This Policy provides insurance benefits to members of EPFO(Employees Provident fund organisation). The main objective is to ensure that the family members get financial assistance in case of death of the member. All employers to whom EPF& MP Act 1952 applies, have a Statutory Liability to provide life insurance benefit to all their employees by subscribing to EDLI scheme.

The insurance cover depends on the salary drawn in the last 12 months of the employment before death. The maximum Defence Costs">Defence Costs monthly salary of an employee is capped at 15,000

Key features:

Members of EPFO are automatically enrolled for EDLI. Ideal for Private sector employees.

An EPFO member is only covered by the EDLI scheme as long as he/she is an active member of the EPF.

There is no minimum service period for availing EDLI benefits

The employer has to make the contribution for EDLI and no fee can be deducted from the employee’s salary

The claim amount under ELDI is subject to a maximum of 6 lakh including bonus of 1.5 lakhs.

The employer can opt out of the scheme in case he takes a higher paying life insurance scheme for employees under Section 17 (2A)

Tax benefits

The Premiums paid by the employer are treated as business expenses and exempted under sec 37(1) of income tax act 1961.
Death Benefit received by the family in case of death of the member is exempted under sec 10(10D) of income tax Act 1961.