Employee Deposit Linked Insurance

from Zoom Insurance

In the present day and age, life is full of uncertainties and it has become imperative for an individual to secure themselves with insurance. Individuals working in the private sector, especially, do not get the same facilities and privileges of public sector employees. Hence, the government of India has introduced the Employees Deposit Linked Insurance Scheme (EDLI) in the year 1976 to ensure private sector employees can enjoy the benefits of insurance and secure their loved ones financially.
EDLI (Employees Deposit Linked Insurance Scheme) insurance cover is provided by EPFO (Employees Provident Fund Organisation). It is especially meant for private sector salaried individuals. In case of an eventuality during the active service period of the individual, the nominee will get a lump-sum insurance pay-out.
EDLI is mandatory for all organisations which are registered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. The government has made it compulsory for such organisations to subscribe under this scheme so as to give the benefit of life insurance to its employees. This scheme works alongside EPF and EPS. The benefit under the scheme depends on the remuneration paid to the employee.

Features of Employees Deposit Linked Insurance Scheme

Below are some of the essential features of EDLI which are applicable to all beneficiaries that come under the scope of the policy:

  • All employees who get a basic salary under INR 15,000 per month are eligible for EDLI scheme. The maximum benefit is limited to INR 6,00,000 of the basic salary, if it exceeds INR 15,000.
  • There are no exclusions under the insurance coverage offered in EDLI.
  • Employees only need to contribute towards EPF and do not require to make a contribution to EDLI.
  • A bonus of INR. 1,50,000 is available under the EDLI scheme.
  • If an organization has more than 20 employees, it becomes mandatory for them to register for EPF. Any employee who has EPF account gets eligible for EDLI scheme by default.
  • EDLI provides comprehensive insurance coverage round the clock and all round the world for the registered employee.
  • Employer has the option to go for other group insurance schemes as well, but the benefit must be more or equal to the offerings under EDLI.
  • The contribution of the employer has been made mandatory of 0.5% of the basic salary or maximum of INR 75 per employee per month. If the employer does not have any group insurance in place, then the maximum contribution is limited to INR 15,000 per month.
  • DA allowance needs to be added to the basic salary for all calculations under EDLI.
  • The nominee mentioned in the document will get the lumpsum amount if the insured person dies during active service term. If the nominee is not available or not mentioned, then the proceeds will be given to the eligible legal heir.

Benefits of working with Zoom Insurance:

Our Life Insurance team at Zoom will make sure that you reap the benefits of the insurance policy to its full potential, ensuring overall financial benefits for your members employees while maintaining coordination with your company’s policy, philosophy, needs and market practice. Zoom’s team will enable you to enhance sustainability and cost-efficiency. Zoom Insurance Brokers offers solutions by the following ways:

  • Thorough inspection and execution of the EDLI insurance program.
  • Planning of the appropriate cover to be provided to the relevant members insurance policy for optimum employee benefits.
  • Leveraging advanced technology for superior services.
  • Tracking and ensuring quick settlement of claims.
  • Enabling convenient renewals

If you have any questions or queries pertaining to the EDLI services from Zoom Insurance Brokers, then do let us know. We will revert within quick time with the best solutions for your problems.