Employee Deposit Linked Scheme (EDLI)

It is a life insurance policy cover for an employee. The dependents (nominees) of the employee receives the sum assured in the event of the death of the employee during the service period.

An employee who is part of the Provident Fund Scheme (Learn about PF) by default becomes part of the EDLI scheme.

The employees’ dependents will get the benefits of EDLI irrespective of the fact that the employee died in the workplace or elsewhere. The insurance coverage is linked to the salary of the employee (Basic + DA)

Only the Employer contributes towards the EDLI scheme. There is no contribution to be done by the employee.

Calculation of the Insurance Amount

Part 1: [(Last Drawn Basic + DA ) * 30]

If basic salary + DA is more than 15000/- then only the statutory limit of 15000/- would be taken in consideration for calculation.

Part 2: 50 % of the balance in EPF account (subject to a maximum of 1.5 lac)

Total Insurance Amount : Part 1 + Part 2

The maximum Sum Insured would be Rs 6 lacs.

Refer EDLI Calculation Notification

Claim Procedure

Earlier EDLI ( Form 5IF),PF (Form 20) , and Pension ( Form 10D) each had a separate Death Claim Forms. The same has been done away with.

Now only one composite form will be used for death claims

Download Composite Claim Form – Death Case

Required Documents

  • Death Certificate of employee
  • Bank Details of nominee ( passbook copy & cancelled cheque)
  • ID proof and Address proof of nominee
  • Authorization letter by company.
  • Photographs

In case the nominee is a minor then the letter of guardianship is required. Also the above mentioned documents needs to be submitted for guardian.

All documents are required to the attested by the employer.

In case the company is shut down or closed, then the forms can be attested by a Gazetted Officer, Magistrate, Post Master, Bank Manager.

EDLI Alternatives

The employer can provide a different Group insurance scheme in lieu of EDLI .The only condition is that the benefits of this insurance scheme should be equal to or better than EDLI.

Major insurance companies like LIC , ICICI , HDFC,  Bajaj Allianz  have a EDLI policy.

They even have additional riders like Accidental death where if the death of an employee is due to accident then apart from the main benefit the nominee will receive an additional amount for death being due to accident.Also riders like Terminal Illness, Critical Illness, and Disability can also be added.

Terminal Illness/ Accelerated Death benefit: The person is suffering from a medical condition and in the opinion of a medical specialist the person life expectancy is less than 6 months. The time period can vary from 6 months to 12/24 months depending on the insurance terms.

Critical Illness: Here the medical condition may not result in death like kidney ailments, heart stroke, coma, paralysis. Certain critical illness can also be a terminal illness.


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