Employee’s Deposit Linked Insurance – What Is It?

All employees, who come under the Employee’s Provident Fund and miscellaneous Provision Act, 1952, can have a statutory liability to subscribe to Employee’s Deposit Linked Insurance 1976 that provides the benefits of life insurance to all the employees. Under this scheme, the insurance benefit is equal to the average balance to the credit of the deceased employee in the Provident Fund from the last 12 months. In EDLI, every company will give 0.50% contribution of each employee’s salary. So, if you are drawing Rs.10, 000 per month, then your company will pay Rs.50 a month towards your insurance policy.

But what are the advantages of you to take this plan. The main benefit is that each employee is covered for a sum assured that ranges between 5,000 to 62,000 which depends on your current salary and service. Employee’s Deposit Linked Insurance also gives the double accident benefit that can be allowed to the extent of the sum assured for an extra premium at the rate of Rs.0.75 per thousand sum assured per annum. But it should not be more than Rs.4.5 lacs. This insurance plan gives assurance benefits that means a payment linked to the average balance in the PF account of an employee. If you are paying provident fund from your salary, then you are eligible for life insurance under this scheme.