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
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47From India, Pune
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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 solutions to people's problems and not a business study classroom where somebody would give you a full-fledged lecture on EDLI. Please do some reading on your own rather than asking questions to forum members. It will help you more - believe me.
Please don't mind.
Warm regards
From India, New Delhi
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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 solutions to people's problems and not a business study classroom where somebody would give you a full-fledged lecture on EDLI. Please do some reading on your own rather than asking questions to forum members. It will help you more - believe me.
Please don't mind.
Warm regards
From India, New Delhi
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Dear Prashant,
Yes, EDLI is applicable, and the concerned nominee can apply for this.
EDLI - Employees' Deposit linked Insurance (India Death payment Scheme)
What is EDLI?
All employees to whom the Employees' Provident Fund and Miscellaneous Provision Act, 1952 applies have a Statutory liability to subscribe to the Employees' 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 length of service is not adequate and/or the salary is low, the average balance may be substantially less, and as such, the benefit to the employee's family is either inadequate or non-existent.
The contribution at 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 an 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 the average age of the group is low.
Settlement of the claim is quicker; LIC requires only the death certificate and the Claim Form from the employer.
The premium paid by the employer is treated as normal business expenses for Income-Tax purposes.
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 the EDLI Scheme. The application should be accompanied by the prescribed requirements, including the Rules of the Proposed Group Insurance scheme. The 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
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Yes, EDLI is applicable, and the concerned nominee can apply for this.
EDLI - Employees' Deposit linked Insurance (India Death payment Scheme)
What is EDLI?
All employees to whom the Employees' Provident Fund and Miscellaneous Provision Act, 1952 applies have a Statutory liability to subscribe to the Employees' 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 length of service is not adequate and/or the salary is low, the average balance may be substantially less, and as such, the benefit to the employee's family is either inadequate or non-existent.
The contribution at 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 an 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 the average age of the group is low.
Settlement of the claim is quicker; LIC requires only the death certificate and the Claim Form from the employer.
The premium paid by the employer is treated as normal business expenses for Income-Tax purposes.
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 the EDLI Scheme. The application should be accompanied by the prescribed requirements, including the Rules of the Proposed Group Insurance scheme. The 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
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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
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From India, Madras
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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
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From Nepal
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P.F. Contribution from the Employee is 12%, whereas actually from the Employer, it is 13.61% (as 3.67% in Employer's contribution, 8.33% in the Pension scheme, and the remaining 1.61% are broken down as follows: 0.5% for E.D.L.I. (Employee Deposit Linked Insurance), 0.01% for administrative charges, and 1.10% for admin charges).
When we cross-check the calculation of the P.F. challan, we can see that we need to have 25.61% of the basic salary to get the approximate figure that has to be paid through the challan.
From India, Pune
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When we cross-check the calculation of the P.F. challan, we can see that we need to have 25.61% of the basic salary to get the approximate figure that has to be paid through the challan.
From India, Pune
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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
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From India, New Delhi
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Dear Prashant,
If an employee who is covered under EPF scheme is liable to receive EDLI amount in any case/condition of death from EPF dept. If exemption is granted to the organization under section-17 2 (A), then the EDLI amount has to be claimed from the insurance agency, not from the EPF dept.
Thank you,
Rajesh Gautam
From India, Gurgaon
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If an employee who is covered under EPF scheme is liable to receive EDLI amount in any case/condition of death from EPF dept. If exemption is granted to the organization under section-17 2 (A), then the EDLI amount has to be claimed from the insurance agency, not from the EPF dept.
Thank you,
Rajesh Gautam
From India, Gurgaon
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Yes, of course, whosoever is the nominee, he can do it, after following / abiding the terms & conditions.
From India, Delhi
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From India, Delhi
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Thank you, AWVIK, for your remarks. This is what I have been trying to tell all participants. Please get your basics right first. This forum will be useful only if we keep it uncluttered. The focus should be on specific, unprecedented, or uncommon situations, or where there is ambiguity, or where no solutions are offered in HR textbooks, 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 on a peculiar issue.
Regards.
From India, Delhi
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Regards.
From India, Delhi
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