Employee Deposit Link Insurance
Employees Deposit Linked Insurance Scheme or EDLI is an insurance cover provided by the EPFO (Employees Provident Fund Organisation) for private sector salaried employees. The registered nominee receives a lump-sum payment in the event of the death of the person insured, during the period of the service.
Need for EDLI
All employees to whom the Employees’ Provident Fund and Miscellaneous Provision Act, 1952 applies, have a Statutory liability to subscribe to Employees’ Deposit Linked Insurance Scheme, 1976 to provide for the benefit of Life insurance to all their employees.
Under this scheme, the deceased employee’s insurance benefit will depend on the length of service and the PF balance in the account. This policy charges lesser premium offers income tax benefits to employees and a higher sum assured.
- EDLI applies to all employees with a basic salary under Rs. 15,000/- per month. If the basic salary goes above Rs. 15,000 per month, the maximum benefit is capped at Rs. 6,00,000/-
- There is no need for the employees to contribute to EDLI. Their contribution is required only for EPF.
- There is a bonus of Rs. 1,50,000/- available under the EDLI.
- Any organisation that has more than 20 employees needs to register for EPF. Therefore, any employee who has an EPF account automatically becomes eligible for the EDLI scheme.
- There are no exceptions to the insurance coverage provided by EDLI. It protects the insured person round the clock, all around the world.
- An employer can opt for another group insurance scheme, but the benefits offered must be equal to or more than those offered under EDLI.
- As per the provisions of the EDLI, the contribution of an employer must be 0.5% of the basic salary or a maximum of Rs. 75 per employee per month. If there is no other group insurance scheme, the maximum contribution is capped at Rs. 15,000/- per month.
- For all calculations under EDLI, dearness allowance must be added to the basic salary.
Our team at Emedlife has deep product knowledge of Employee Deposit Linked Insurance, gained through experience and extensive research, and hence offer you cost-effective quotes, and claims settlement with a quick turn around time.
Talk to us today to for securing the financial future of your dependents at an affordable price and for reliable claims management.
For registration of claims and to learn more about our claims process please contact our dedicated claims team for advice on an incident/claim.
D&O Policy protect company director or officer from legal liability arising out of actual or alleged wrongful acts in managing a company.
- The policy covers a wide range of litigation that could arise from customers, vendors, shareholders, employees.
- In addition to defence cost, it provides cover for :
- Investigation Cost
- Entity Protection against Employment Practice Liability claims
- Outside Entity Directorship cover,etc.