Transcript EDLI Scheme - Insure And Invest

EMPLOYEES DEPOSIT LINKED INSURANCE SCHEME
EFFECTIVE DATE:
01.08.1976
APPLICABLE TO:
Employees of all establishments
contributing to Employees’
Provident Fund
E D L I SCHEME
EDLI BENEFITS ARE

Insurance Amount payable is
equivalent to the last 12 months
average balance in the Provident Fund
Account

Where such balance exceeds
Rs.35,000/-, the Insurance amount
payable will be Rs.35,000/- Plus 25%
of the balance in excess of Rs. 35,000/subject to maximum of Rs.60,000/-
E D L I SCHEME
CONTRIBUTION UNDER EDLI IS:
50 Paise per Rs. 100 wages under
Challan
No. 21 and 1 paisa per
Rs.
100 wages under Challan No. 22
WHO PAYS

EMPLOYER ONLY
E D L I SCHEME
EXEMPTION
PROVISION FOR EXEMPTION
UNDER SECTION 17(2A) OF
E.P.F. AND M.P. ACT, 1952
E D L I SCHEME
TWO TYPES
•
Uniform Cover of Rs. 62,000/- to each
employee
•
Graded cover varying between
Rs. 5,000/- and Rs.62,000/- depending
on employee’s salary and service.
DOUBLE ACCIDENT BENEFIT MAY BE
INCLUDED
E D L I SCHEME

PREMIUM PAID BY EMPLOYER

PREMIUM RATES ARE BASED
ON THE AGE DISTRIBUTION OF
THE MEMBERS
E D L I SCHEME

Higher Insurance Cover

Special premium rates which are
lower than the usual premium
rates. Cost under LIC’s Scheme
may be low

Claim settlement by LIC is quick
and procedures are simple
E D L I SCHEME
FUTURE COST

Under EDLI Scheme is likely to
increase due to increase in wage
bill

Under LIC’s Scheme, it may
remain usually unchanged (If
average age of employees remains
around the same)
E D L I SCHEME
PROCEDURE FOR INSTALLATION
OF LIC’s SCHEME

LIC’s Scheme is approved by C P F C
• However, Employer has to apply to the
Central Provident Fund
Commissioner
through the
Regional Provident Fund office
for
relaxation from EDLI Scheme
• Employer will be required to deposit with
R P F C only 1/2 paise per Rs. 100/monthly wage bill towards inspection
charges