Dear All, Kindly give me details regarding EDLI? Regards, SC
From India, Thane
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47From India, Thane
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Dear SC,
Employee's deposit Linked Insurance scheme (EDLI) was introduced in the year 1976 under Section 6C of the Employees' Provident Fund & Miscellaneous Provisions Act, 1952. The objective of the scheme was to provide life insurance benefits to employees of any establishment or class of establishments to which the EPF & MP Act applies.
Under Subsection 2 of Section 6C of the act, only the employer has to contribute towards the deposit-linked insurance fund. Currently, the rate of contribution by the employer is 0.50% of the wages on which EPF deductions are being made, subject to a maximum salary of Rs. 6,500.00 per month. The amount thus calculated is required to be deposited in account head No. 21 of the EPF deposit challan.
Under Subsection 4a of Section 6C of the act, the employer has to further contribute towards the fund at the notified rate in connection with the administration of the insurance scheme. The current rate of contribution is 0.01% of the wages/salary on which EPF deductions are being made, subject to a maximum salary of Rs. 6,500.00 per month. The minimum contributions to be paid by the employer are Rs. 2.00, and the same is to be under Account Head No. 22 of the EPF challan.
Under this scheme, the sum lying in the EPF account of a member, including the employer's share of EPF contribution, is insured for an amount notified in the scheme. The current notified amount is Rs. 60,000.00 (Sixty thousand only).
Benefits under this scheme are called Assurance benefits and are available to the nominee of a deceased member who dies during the course of employment or continuation of membership. In the case of the death of a member during the course of employment, these benefits are to be claimed by the nominee along with EPF and FPS benefits. The form for claiming the benefits is Form No. 5(IF) of the EPF scheme.
Exemption from this scheme is also available under Section 17(2A) of the act and Para 28 of the scheme. Exemption is granted from the scheme subject to the condition that the employer should formulate and implement a scheme that is more beneficial with respect to life insurance than this scheme. LIC of India has already floated the scheme, and exemptions are being granted to employers who have made the LIC scheme applicable and also requested the RPFC (Regional Provident Fund Commissioner) for exemption from the statutory scheme of EDLI.
In case an organization has been exempted from the statutory provisions, then the employer is not required to contribute under Account Head No. 21, i.e., no regular monthly contributions as required under the statutory scheme are to be made by the employer. Also, in Account Head No. 22, the administrative charges will not be paid by the employer, but Inspection Charges are to be paid under the account head 22. The rate of contribution for this will be 0.005% of the salary/wages, subject to a maximum salary of Rs. 6,500.00 per month. The minimum contribution in this head is Rs. 1.00.
I hope this will help you understand the scheme and the benefits provided under the scheme.
Regards,
Anil Anand
From India, New Delhi
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Employee's deposit Linked Insurance scheme (EDLI) was introduced in the year 1976 under Section 6C of the Employees' Provident Fund & Miscellaneous Provisions Act, 1952. The objective of the scheme was to provide life insurance benefits to employees of any establishment or class of establishments to which the EPF & MP Act applies.
Under Subsection 2 of Section 6C of the act, only the employer has to contribute towards the deposit-linked insurance fund. Currently, the rate of contribution by the employer is 0.50% of the wages on which EPF deductions are being made, subject to a maximum salary of Rs. 6,500.00 per month. The amount thus calculated is required to be deposited in account head No. 21 of the EPF deposit challan.
Under Subsection 4a of Section 6C of the act, the employer has to further contribute towards the fund at the notified rate in connection with the administration of the insurance scheme. The current rate of contribution is 0.01% of the wages/salary on which EPF deductions are being made, subject to a maximum salary of Rs. 6,500.00 per month. The minimum contributions to be paid by the employer are Rs. 2.00, and the same is to be under Account Head No. 22 of the EPF challan.
Under this scheme, the sum lying in the EPF account of a member, including the employer's share of EPF contribution, is insured for an amount notified in the scheme. The current notified amount is Rs. 60,000.00 (Sixty thousand only).
Benefits under this scheme are called Assurance benefits and are available to the nominee of a deceased member who dies during the course of employment or continuation of membership. In the case of the death of a member during the course of employment, these benefits are to be claimed by the nominee along with EPF and FPS benefits. The form for claiming the benefits is Form No. 5(IF) of the EPF scheme.
Exemption from this scheme is also available under Section 17(2A) of the act and Para 28 of the scheme. Exemption is granted from the scheme subject to the condition that the employer should formulate and implement a scheme that is more beneficial with respect to life insurance than this scheme. LIC of India has already floated the scheme, and exemptions are being granted to employers who have made the LIC scheme applicable and also requested the RPFC (Regional Provident Fund Commissioner) for exemption from the statutory scheme of EDLI.
In case an organization has been exempted from the statutory provisions, then the employer is not required to contribute under Account Head No. 21, i.e., no regular monthly contributions as required under the statutory scheme are to be made by the employer. Also, in Account Head No. 22, the administrative charges will not be paid by the employer, but Inspection Charges are to be paid under the account head 22. The rate of contribution for this will be 0.005% of the salary/wages, subject to a maximum salary of Rs. 6,500.00 per month. The minimum contribution in this head is Rs. 1.00.
I hope this will help you understand the scheme and the benefits provided under the scheme.
Regards,
Anil Anand
From India, New Delhi
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Group Insurance Scheme in Lieu Of EDLI.doc