Max sum assured under EDLI scheme hiked to Rs 7 lakh

NEW DELHI: The labour ministry on Thursday notified the new Employees’ Deposit Linked Insurance Scheme, 2021 under which it has been decided to hike the maximum sum assured from the existing Rs 6 lakh to Rs 7 lakh, and for minimum sum assured to continue at Rs 2.5 lakh to member beneficiaries.
The decision to this effect was taken in September 2020 during a meeting of the Central Board of Trustees (CBT) of the retirement fund body, where it was also decided to continue payment of minimum sum assured of Rs 2.5 lakh under the scheme beyond February 14, 2020.
With the issuance of the gazette notification on Thursday, a senior labour ministry official said the hike in the maximum sum assured will be enforced immediately, while the provision of minimum sum assured of Rs 2.5 lakh will be applicable retrospectively from February 15, 2020.
The ministry of labour and employment had on February 15, 2018 through a notification increased the minimum assurance benefit ceiling to Rs 2.5 lakh under the EDLI scheme for a period of two years, which had expired on February 15, 2020.
To continue the benefits, the CBT had in September 2020 accorded approval to amendment of portions of the Employees’ Deposit Linked Insurance Scheme (EDLI), 1976 to enhance the maximum assurance benefit to Rs 7 lakh from Rs 6 lakh.
This amendment was aimed at providing additional assistance to families and dependents of members of the scheme in the event of their death while in service.
In the meeting of the CBT in March 2020, EPFO trustees had recommended an extension of the provision of minimum assurance benefit of Rs 2.5 lakh to family members of deceased employees who died while in service.