Employees Deposit Linked Insurance Scheme

The EDLI Scheme is clubbed and linked to the EPF scheme and EPS scheme. All employees who subscribe to the EPF scheme are automatically enrolled in the EDLI scheme.

While the employee cannot choose which of these three schemes he or she wishes to subscribe to, the schemes are transferrable when the employee shifts jobs. Contributions will continue in the same account from the new employer.

Contributions to the EDLI scheme

While the employee enjoys the benefits of insurance coverage under the EDLI scheme, s/he does not contribute to it directly. Contributions are made by the employer.

  • Contributions to the scheme are done in accordance with a formula of a fixed percentage of DA and salary.
  • Employee’s Provident Fund (EPF) contribution by Employee: 12%.
  • Employee’s Provident Fund (EPF) contribution by Employer: 12% minus EPS contribution.
  • Employee’s Pension Scheme (EPS) contribution by Employee: none.
  • Employee’s Pension Scheme (EPS) contribution by Employer: 8.33% (subject to a maximum of Rs.1,250).
  • EDLI contribution by Employee: none.
  • EDLI contribution by Employer: 0.50% (subject to a maximum of Rs.75)

EDLI claim procedure

  • The amount payable can be claimed by the nominee.
  • In case there has been no nominee named, the surviving family members of the deceased can claim the amount.
  • Under claims being made by surviving family members, claims cannot be made by the oldest son, or married daughters whose husbands are still alive.
  • In case there is no nominee or eligible surviving family member, the claim can be made by the legal heir.
  • In case the nominee, surviving family member, or legal heir is a minor – the claim can be made by the legal guardian.
  • In order to initiate the claims process, Form 5 (which can be found here http://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form5IF.pdf) should be duly filled out and submitted.

While filling out the claim, it should be kept in mind that:

  • The EDLI Claims are only admissible if the deceased person was actively employed at the time of death.
  • The application for claim must be attested by the employer.
  • In case the employer is no longer able / available to attest the claim application, attestation must be done with the official seal of either:
    • Gazetted Officer.
    • Magistrate.
    • President of Village Panchayat.
    • Chairman / Secretary / Member of Municipal or District Local Board.
    • Postmaster or Sub Postmaster.
    • MP or MLA.
    • Member of CBT or Regional Committee of EPF.
    • Bank Manager (of the bank in which the account was maintained).
  • In order to claim the Provident Fund dues and Pension / PF Withdrawal Benefit, Form 20 (which can be found here http://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form20.pdf) and Form 10D (which can be found here http://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form10D.pdf) / Form 10C (which can be found here http://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form10C.pdf) must also be duly filled and submitted.
  • Forms should be filled out in block letters only.
  • A cancelled cheque should be attached with the claim forms.

Features & benefits of EDLI scheme

  • Claim amount under the EDLI Scheme is 30 times the salary. Salary is calculated as (D.A. + Basic Salary).
  • There will also be a bonus of Rs.1,50,000 which will also be payable at the same time as the claim amount.
  • The quantum of coverage is directly linked to the salary of the employee.
  • Premium payable is similar for all employees.
  • Age, and other individual factors do not affect any employee’s eligibility to be covered under this scheme.
  • The contribution towards this scheme is 0.50% of the employee’s salary, and is payable by the employer.
  • Payments are made by the employer to the Provident Fund Authorities.
  • Under Section 17 (2A) of the Act, the employer can opt out of contributing to this scheme if the employer has already opted for a better insurance policy for its employees under a different scheme.
  • In lieu of EDLI, the employer can also opt for schemes like the LIC Group Insurance Scheme.

Documents required for a claim under EDLI scheme

In order to successfully file a claim, the following documents should be submitted along with the claim forms:

  • Death certificate: of the EDLI member.
  • Guardianship Certificate: If the claim is being made on behalf of a minor family member, nominee, or legal heir, the legal guardian must also submit a guardianship certificate.
  • Succession certificate: If the claim is being made by a legal heir of the deceased.
  • Cancelled cheque: of the bank account of the claimant in which claim funds are to be deposited.


Mr. Babu was employed and was actively contributing the EPF, EPS and EDLI schemes. He drew a monthly salary of Rs.15,000. Upon his death, his nominee claimed the EDLI insurance benefit which was equal to (30 x Rs.15,000) + (Rs.1,50,000) = Rs.6,00,000.

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