This is considered a boon by millions of salaried employees in India in the form of increased insurance benefits under the Employees’ Deposit Linked Insurance Scheme. Latest information for 2025 states that a gratuity-free life coverage benefit to the tune of ₹7 lakh is available to all PF account-holders in addition to EDLI.
It was a decision taken in the process of reforms brought about by EPFO in providing enhanced social security benefits to its organized sector membership.
What Js EDLI Scheme?
The Employees’ Deposit-Linked Insurance is basically a life insurance scheme for all EPFO members having an active account. If an employee with an active PF account dies during service, then his or her nominee or legal heir is entitled to receive a one-time insurance payout.
Previously, the maximum allowed under the scheme was ₹6 lakhs flat. The recent rule change has enabled the limit to be increased to ₹7 lakhs, thereby giving a higher measure of security to the families of the employees.
Key Features Of The New EPFO Insurance Rule
- Eligibility: All subscribers of the EPF Organization actively working and having paid contributions toward their PF account.
- Coverage Amount: From a minimum of Rs. 2.50 lakhs to a maximum of Rs. 7 lakhs, depending on the average basic wage of the previous 12 months.
- Premium Not Charged: This insurance cover is provided to employees free of charge; the employer pays 0.5% of the monthly wage (subject to a maximum monthly wage of Rs. 15,000) into the EDLI scheme.
- No Separate Registration: As long as you are an EPF subscriber, you are automatically a member of this scheme.
- Valid Till: As per the latest notification, this cap of ₹7 lakhs stands as of FY 2025–26 unless further revised.
The Claim Procedure
In case of death while in service:
- The nominee/legal heir shall fill Form 5IF.
- Form 5IF is to be submitted to the regional EPFO office with death certificate, proof of nomination, and KYC.
- The claim shall be settled within 30 days on receipt of all relevant documentation in order.
Conclusion
With this enhancement of the Fund, the families of employees will enjoy financial security to a huge extent in the unfortunate situation of the death of an employee before the attainment of retirement age. It also strengthens the role of the EPFO in providing a comprehensive social safety net to the working population of India.
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