Dear Seniors, If the employee died after working hours & death caused not related to employement then can employee’s heir apply for EDLI amount??? Prashant 098504011060
From India, Pune
46From India, Pune
Dear Prashant,
First tell me why you have the doubt? Did somebody tell you about it. Please go through the PF Act to clear your doubts. You people need to understand that this is a forum where we are supposed to give solution to people 's problem and not a business study classroom where somebody would give you a full fledged lecture on EDLI. Please do some reading of your own rather then asking questions to forum members. It will help you more - believe me.
Please don't mind
Warm regards
From India, New Delhi
First tell me why you have the doubt? Did somebody tell you about it. Please go through the PF Act to clear your doubts. You people need to understand that this is a forum where we are supposed to give solution to people 's problem and not a business study classroom where somebody would give you a full fledged lecture on EDLI. Please do some reading of your own rather then asking questions to forum members. It will help you more - believe me.
Please don't mind
Warm regards
From India, New Delhi
Dear Prashant,
Yes,EDLI is applicable and concern nominee can apply for this.
EDLI - Employees Deposit linked Insurance (India Death payment Scheme)
What is EDLI?
All employees to whom the Employee's Provident Fund and Miscellaneous Provision Act , 1952 applies, have a Statutory liability to subscribe to Employee's Deposit Linked Insurance Scheme, 1976 to provide for the benefit of Life insurance to all their employees. Under the scheme as amended with effect from 24th June,2000 the insurance benefit is equal to the average balance to the credit of the deceased employee in the Provident Fund during the last 12 months, provided that where such balance exceeds Rs.35,000, insurance cover would be equal to Rs.35,000 plus 25% of the amount in excess of Rs.35,000 subject to a maximum of Rs.60,000. Thus if the lenth of service is not adequate and/ or the salary is low the average balance may be substantially less and such the benefit to the employee's family is either inadequate or non-existent.
The contribution @ 0.50% of each employee's salary is payable by the Employer to the Provident Fund Authorities.
THE BETTER ALTERNATIVE:
However, under Sec. 17(2A) of the act, the employer may be exempted from contributing to this scheme, if he/she has provided for better insurance benefits through alternative scheme. LIC's Group Insurance Scheme in lieu of EDLI has been accepted as one such better alternative.
ADVANTAGES TO THE EMPLOYER :
The premium payable by the employer is usually less than the total contribution being paid by the employer to R.P.F.C; particularly when the salary level is high and average age of the group is low.
Settlement of claim is quicker, LIC requires only the death certificate and the Claim Form from the employer.
Premium paid by the employer is treated as normal business expenses for Income-Tax purpose.
ADVANTAGES TO THE EMPLOYEE:
Each employee is covered for a sum assured ranging between 5,000 to 2,00,000 depending upon the current salary and service put in from day one irrespective of the actual balance in the Provident Fund. Alternatively every employee/ worker can be covered for a uniform sum assured which will be decided depending upon the group size.
ACCIDENT BENEFIT:
Double accident benefit can be allowed to the extent of the Sum Assured for an extra Premium.
STEPS TO INTRODUCE THE SCHEME:
Put up notice for the knowledge of the employees that you are going in for LIC's Scheme in lieu of EDLI.
Apply to the Regional Provident Fund Commissioner under Sec.17 (2A) of the E.P.F. and M.P. Act 1952 to exempt you from EDLI Scheme. The application should be accompanied by the prescribed requirements including the Rules of the Proposed Group Insurance scheme. Central PF Commissioner, has authorized the R.P.F.C. to grant exemption from the 1st of the month in which the application for relaxation is submitted. LIC also offers necessary guidance to the employers for seeking relaxation.
Best Regards,
sajid Ansari-Delhi
From India, Delhi
Yes,EDLI is applicable and concern nominee can apply for this.
EDLI - Employees Deposit linked Insurance (India Death payment Scheme)
What is EDLI?
All employees to whom the Employee's Provident Fund and Miscellaneous Provision Act , 1952 applies, have a Statutory liability to subscribe to Employee's Deposit Linked Insurance Scheme, 1976 to provide for the benefit of Life insurance to all their employees. Under the scheme as amended with effect from 24th June,2000 the insurance benefit is equal to the average balance to the credit of the deceased employee in the Provident Fund during the last 12 months, provided that where such balance exceeds Rs.35,000, insurance cover would be equal to Rs.35,000 plus 25% of the amount in excess of Rs.35,000 subject to a maximum of Rs.60,000. Thus if the lenth of service is not adequate and/ or the salary is low the average balance may be substantially less and such the benefit to the employee's family is either inadequate or non-existent.
The contribution @ 0.50% of each employee's salary is payable by the Employer to the Provident Fund Authorities.
THE BETTER ALTERNATIVE:
However, under Sec. 17(2A) of the act, the employer may be exempted from contributing to this scheme, if he/she has provided for better insurance benefits through alternative scheme. LIC's Group Insurance Scheme in lieu of EDLI has been accepted as one such better alternative.
ADVANTAGES TO THE EMPLOYER :
The premium payable by the employer is usually less than the total contribution being paid by the employer to R.P.F.C; particularly when the salary level is high and average age of the group is low.
Settlement of claim is quicker, LIC requires only the death certificate and the Claim Form from the employer.
Premium paid by the employer is treated as normal business expenses for Income-Tax purpose.
ADVANTAGES TO THE EMPLOYEE:
Each employee is covered for a sum assured ranging between 5,000 to 2,00,000 depending upon the current salary and service put in from day one irrespective of the actual balance in the Provident Fund. Alternatively every employee/ worker can be covered for a uniform sum assured which will be decided depending upon the group size.
ACCIDENT BENEFIT:
Double accident benefit can be allowed to the extent of the Sum Assured for an extra Premium.
STEPS TO INTRODUCE THE SCHEME:
Put up notice for the knowledge of the employees that you are going in for LIC's Scheme in lieu of EDLI.
Apply to the Regional Provident Fund Commissioner under Sec.17 (2A) of the E.P.F. and M.P. Act 1952 to exempt you from EDLI Scheme. The application should be accompanied by the prescribed requirements including the Rules of the Proposed Group Insurance scheme. Central PF Commissioner, has authorized the R.P.F.C. to grant exemption from the 1st of the month in which the application for relaxation is submitted. LIC also offers necessary guidance to the employers for seeking relaxation.
Best Regards,
sajid Ansari-Delhi
From India, Delhi
The applicability of EDLI says that the employee will be covered during his employment. Therefore it does not matter whether the employee died during working hours or not. Regards Bala
From India, Madras
From India, Madras
hi, everyone this is the firs time i sign in and i m looking for some information regarding training and development of hr would u help me plz
From Nepal
From Nepal
P.F. Contribution from Employee is 12% where as actually from Employer it is 13.61% ,( as 3.67 % in Employer's cont. 8.33% in Pension scheme and remaining 1.61% are towards in following breakup(0.5 % for E.D.L.I. ( Employee Deposit Linked Insurance)+0.01% and 1.10% for admin charges.)
When we cross check calculation of P.f. challan, we can just have25.61% on basic salary to get approx. figure which has to be paid thru. challan.
From India, Pune
When we cross check calculation of P.f. challan, we can just have25.61% on basic salary to get approx. figure which has to be paid thru. challan.
From India, Pune
could you explain if an employee is having basic sal of 5800, whts the EDLI benefit if he died.......... pls explain Thnks Amita
From India, New Delhi
From India, New Delhi
Dear Prashant,
If an employee who is covered under EPF scheme is liable to get EDLI amount in any cause/condition of death from EPF dept. If exemption is granted to organisation under section-17 2 (A) then EDLI amount has to be claimed from insurance agency not from EPF dept.
Thanking you,
Rajesh Gautam
From India, Gurgaon
If an employee who is covered under EPF scheme is liable to get EDLI amount in any cause/condition of death from EPF dept. If exemption is granted to organisation under section-17 2 (A) then EDLI amount has to be claimed from insurance agency not from EPF dept.
Thanking you,
Rajesh Gautam
From India, Gurgaon
Yes, of course, whosoever is the nominee, he can do it, after following / abiding the terms & conditions.
From India, Delhi
From India, Delhi
Thx AWVIK,
for your remarks.
This is what I have been trying to tell all participants.
Plz get your basics right first. This forum will be useful only if we keep it un-cluttered. The focus should be on specific, un-prcedented or un-common situations, or where there is an ambiguity, or where no solutions are offered in HR txtbooks, or where one needs to know the applied aspects or practical solutions/suggestions; or where some sharing of practice is involved; or when you need specific advice to a peculiar issue.
Regards.
From India, Delhi
for your remarks.
This is what I have been trying to tell all participants.
Plz get your basics right first. This forum will be useful only if we keep it un-cluttered. The focus should be on specific, un-prcedented or un-common situations, or where there is an ambiguity, or where no solutions are offered in HR txtbooks, or where one needs to know the applied aspects or practical solutions/suggestions; or where some sharing of practice is involved; or when you need specific advice to a peculiar issue.
Regards.
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Employee Appraisal Form new.doc