Group Insurance Scheme in lieu of EDLI

Group Insurance Scheme in lieu of EDLI:

The employees’ Deposit Linked Insurance Scheme is application to all establishment and undertaking contributing to Employees Provident Fund under EPF and MP Act, 1952 with effect from 01.08.1976, unless exempted under section 17 (2A), of the act. The schemes provides for an insurance cover to an employees, which is linked to his balance in the PF Account, subjected to a maximum of Rs 60000. Under LIC’s scheme, which is granted in lieu of the EDLI, the insurance cover starts from Rs 5000 and depends on the service put in by the employees and the current monthly salary on each annual renewal date. The cover provided will be at least Rs 2000 more than the cover given under the EDLI scheme. Few advantages of the LIC’s scheme (licindia.in) are higher cover, lower premium (depending on average age), cover not linked to balance in PF account, simple administrative procedures, easy claims settlement process etc.