In a meeting, the Employees’ Provident Fund Organisation (EPFO) announced some important changes to the Employees' Deposit Linked Insurance (EDLI) scheme. These updates will not only increase insurance payout and coverage but will also make it easier for families to file death claims. The EDLI scheme offers life insurance coverage to employees who are a part of the EPFO scheme.
Increase In Insurance Benefit
“Three key changes in recent modification of EDLI scheme is the increase in the maximum insurance benefit amount to Rs 7 lakh, a minimum benefit amount of Rs 50,000 for families of employees who passed away within their first year of employment, and employees changing jobs will no longer lose their insurance coverage, even if there’s a gap of up to two months between jobs,” says Says Abhishek Kumar, a Securities and Exchange Board of India (Sebi)-registered investment advisor (RIA), and founder and chief investment advisor of SahajMoney, a financial planning firm.
EDLI Proceeds Paid To Nominee
In the unfortunate event of an employee’s death, the EDLI proceeds are given to the nominee(s) designated by the employee through the EPF nomination process. If an employee has not made any nomination, the surviving family members become eligible to claim the benefits.
“To claim the insurance proceed the beneficiaries must submit several essential documents, including the death certificate of the EPF member, date of birth certificates of all claimants, bank account proof (such as a cancelled cheque or passbook) of the claimant(s), the beneficiary’s Aadhaar number, and photographs of all claimants,” says Kumar.
Updating The E-nomination Process
Perhaps the most critical action is completing and regularly updating the e-nomination process through the EPFO member portal. A proper nomination directly identifies who should receive the benefits, streamlining the claim process and preventing potential disputes among family members.
Employees should also periodically monitor their EPF accounts to verify that their employers are making the required EDLI contributions, which can be checked through the EPF passbook or by logging into the EPFO member portal.
