As of June 2025, the Employees’ Provident Fund Organisation (EPFO) continues to offer an enhanced insurance benefit under the Employees’ Deposit Linked Insurance (EDLI) scheme. The EPFO ₹7 Lakh Insurance provides crucial financial support to the family of a deceased EPF member, making it one of the most important yet underutilized social security tools in India.
What is EPFO ₹7 Lakh Insurance?
EPFO ₹7 Lakh Insurance refers to the maximum claimable amount under the EDLI 2025 scheme. This insurance is provided to the nominee or legal heir of an EPF subscriber in case of the member’s death during active service. The scheme is mandatory for all employees enrolled under EPF, and it doesn’t require any additional contribution from the employee.
Who is Eligible for EPFO Insurance Benefit in 2025?
To qualify for the EPFO insurance benefit in 2025, the following criteria must be met:
- The employee must have been an active EPF member at the time of death.
- The employer must have deposited contributions to the EPF account in the 12 months preceding the death.
- There is no minimum service requirement.
This means even newly employed individuals are covered under EDLI 2025 from day one of joining, as long as EPF contributions are being made.
EPFO EDLI 2025 Coverage and Calculation
Under EDLI 2025, the insurance amount is linked to the last drawn salary of the employee. The formula used is:
Insurance Payout = 35 times the last drawn monthly salary + bonus of ₷1.75 lakh
Maximum limit: ₹7 lakh
| Component | Calculation Example (Salary: ₹21,000) |
|---|---|
| Basic Salary | ₹21,000 |
| 35 Times Basic | ₹735,000 |
| Fixed Bonus | ₹1,75,000 |
| Total Insurance | ₹910,000 |
Note: If the last drawn salary is higher, the insurance payout can reach up to the cap of ₹7 lakh.
How to Initiate the Claim Process EPFO in 2025
The claim process for EPFO insurance benefit is simple but requires proper documentation. Here’s a step-by-step guide:
- Prepare Required Documents:
- Death certificate of the employee
- Nominee’s ID proof
- EPF details
- Bank account details of the nominee
- Succession certificate (if no nominee)
- Submit Form 5 IF:
- This form is used specifically for claiming insurance under EDLI.
- It should be signed and certified by the employer.
- Submit at the Nearest EPFO Office:
- Claims must be submitted either physically or online through the EPFO portal.
- Track Claim Status:
- After submission, the claim can be tracked using the EPFO Unified Member Portal.
Additional Insights and Practical Tips
- Employer Responsibility: Even though the employee doesn’t contribute to EDLI, employers must ensure the scheme is active by making their portion of the contribution.
- Nominee Update: EPF members should regularly update their nominee details via the UAN portal to avoid complications in the claim process.
- Awareness Gap: Many families are unaware of the EPFO ₹7 Lakh Insurance, resulting in missed claims. Awareness campaigns and employer briefings can help bridge this gap.
Conclusion
The EPFO ₹7 Lakh Insurance under EDLI 2025 remains a significant financial safeguard for employees and their families. It is critical for workers and employers alike to understand their roles and responsibilities to ensure timely and full benefit disbursal. With the increasing uncertainties in the job landscape, this insurance acts as a much-needed safety net.
FAQs About EPFO ₹7 Lakh Insurance
Who is covered under EPFO ₹7 Lakh Insurance?
All active EPF members whose employer contributes to EDLI are automatically covered.
Can I claim EDLI if the employee had left the job before death?
No. The insurance applies only if the employee was in active service and contributions were made in the last 12 months.
Is it necessary to have a nominee to claim the EPFO insurance benefit?
While having a nominee simplifies the process, legal heirs can also claim by submitting a succession certificate.
What is the processing time for EPFO insurance claims?
Typically, claims are settled within 15-30 working days, provided all documents are in order.
Can the claim be filed online?
Yes. The EPFO portal allows digital submission of Form 5 IF, though employer attestation remains mandatory.
Click here to learn more