As of June 2025, the Employees’ Provident Fund Organisation (EPFO) continues to provide a significant social security benefit through the Employees’ Deposit Linked Insurance (EDLI) Scheme. Under this scheme, families of EPF members are eligible for an insurance payout of up to ₹7 lakh in the unfortunate event of the member’s death during active service. This initiative is a critical financial safeguard for millions of Indian workers and their families, yet it remains underutilized due to limited awareness.
Summary Table: EPFO ₹7 Lakh Insurance in 2025
| Feature | Details |
|---|---|
| Scheme Name | Employees’ Deposit Linked Insurance (EDLI) |
| Insurance Amount | Up to ₹7,00,000 |
| Applicable Year | 2025 |
| Administered By | Employees’ Provident Fund Organisation (EPFO) |
| Contribution Requirement | No employee contribution required |
| Eligible Members | All active EPF members |
| Claim Form | Form 5 IF |
| Claim Mode | Offline & Online |
| Processing Time | 15 to 30 working days |
| Official Website | www.epfindia.gov.in |
What is EPFO ₹7 Lakh Insurance?
The EPFO ₹7 Lakh Insurance refers to the maximum benefit available under the EDLI Scheme. This scheme ensures that in the event of the untimely death of an EPF subscriber, the nominee or legal heir receives a lump-sum amount that is calculated based on the member’s last drawn salary. The insurance benefit is available without any direct contribution from the employee and is automatically applicable to all eligible EPF members.
Eligibility Criteria for EPFO Insurance Benefit (2025)
To qualify for the insurance payout under EDLI in 2025, the following conditions must be satisfied:
- The deceased must have been an active EPF member at the time of death.
- EPF contributions must have been made by the employer in at least one of the 12 months preceding the death.
- There is no minimum service requirement, meaning new employees are also covered from day one.
This broad eligibility ensures maximum coverage for Indian workers across sectors.
Coverage Amount and Calculation Under EDLI 2025
The EDLI benefit is linked to the employee’s basic salary and calculated using the following formula:
Insurance Payout = 35 times last drawn monthly salary + fixed bonus of ₹1.75 lakh
Example Calculation
| Component | Amount (Example) |
| Last Drawn Basic Salary | ₹21,000 |
| 35 Times Basic Salary | ₹735,000 |
| Fixed Bonus | ₹1,75,000 |
| Total Benefit | ₹910,000 (Capped at ₹7 lakh) |
The maximum claimable amount is capped at ₹7,00,000. Even if the calculated amount exceeds this limit, the beneficiary will receive only the maximum permissible amount.
How to File a Claim for EPFO ₹7 Lakh Insurance in 2025
The process to file an insurance claim under the EDLI Scheme is straightforward, provided the necessary documentation is available.
Step-by-Step Claim Process
- Gather Required Documents:
- Death certificate of the EPF member
- Identity proof of the nominee or legal heir
- EPF details (UAN number, etc.)
- Bank account details of the nominee/legal heir
- Succession certificate (in case of no nominee registered)
- Fill and Submit Form 5 IF:
- This is the official claim form for EDLI insurance
- Must be certified and signed by the employer
- Submission:
- Submit the form and documents either:
- Physically at the nearest EPFO regional office, or
- Online via the EPFO Unified Portal
- Submit the form and documents either:
- Track Your Claim:
- Use the UAN and claim reference number to check status via the EPFO portal.
Responsibilities of Employers and Employees
Employer’s Role
- Ensure that EPF contributions are made regularly.
- Verify and certify Form 5 IF.
- Educate employees about the benefits available under EDLI.
Employee’s Role
- Keep nominee details updated on the UAN portal.
- Inform family members about the EDLI benefit and claim process.
- Maintain personal records and documents for faster claim filing.
Key Benefits of EPFO ₹7 Lakh Insurance
- Automatic Coverage: No need to apply separately
- No Cost to Employees: Funded entirely by the employer’s contributions
- Financial Relief: Provides essential support to the family in times of crisis
- Fast Processing: Claim settlement within 15–30 working days
Common Challenges and How to Overcome Them
| Challenge | Solution |
| Lack of nominee data | Update details via UAN portal regularly |
| Delay in employer certification | Follow up with HR or PF consultant |
| Missing documents | Collect and store copies securely in advance |
FAQs About EPFO ₹7 Lakh Insurance
1. Who is eligible for EPFO insurance in 2025?
Ans. All active EPF members whose employer contributes to the fund and EDLI scheme.
2. What if the employee left the job before death?
Ans. The scheme only applies if the employee was actively employed and contributions were made in the preceding 12 months.
3. Is nominee registration mandatory?
Ans. It is highly recommended. If no nominee is registered, legal heirs will need a succession certificate.
4. Can I file the claim online?
Ans. Yes. Claims can be submitted through the EPFO portal, but employer certification is still required.
5. What is the maximum benefit amount?
Ans. The maximum payout under the EDLI scheme is ₹7 lakh.
6. How long does it take to settle the claim?
Ans. Claims are typically settled within 15–30 working days if all documents are in order.
Final Thoughts
The EPFO ₹7 Lakh Insurance scheme under EDLI 2025 is a highly valuable yet often overlooked benefit for Indian workers. With no cost to the employee and simple eligibility criteria, it offers immediate financial support to dependents during a difficult time. Employees are encouraged to understand this benefit, keep their records updated, and ensure their families are aware of the claims process.
This awareness and preparedness can make a crucial difference when it matters most.
Official EPFO Website: www.epfindia.gov.in
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