The Employees’ Provident Fund Organization (EPFO) has included a life insurance coverage of up to ₹7 lakhs under the Employees’ Deposit Linked Insurance (EDLI) Scheme. But in case, if the EPF accumulates member’s death without anyone as a nominee? EPFO has set 2025 as the year to come up with new rules to make it easier and faster to claim by legal heirs in the instances mentioned above.
What is the EDLI Scheme?
The EDLI scheme provides life insurance coverage to all active EPF members. The maximum insurance payout of ₹7 lakh depends on the last drawn salary and contribution history, thus the nominee or legal heir of the deceased member is entitled to the payment if death occurs during the service.
Who Can Claim If There’s No Nominee?
In case the EPF member dies without the appointment of a nominee, the claim can be made by:
- Spouse
- Children
- Dependent parents
- Legal heirs (if there’s no immediate family)
The claimant will need to file legal documents like a succession certificate, legal heir certificate, or a family member certificate issued by the competent authority.
How to Submit the EDLI Claim Without Nominations
Here is a step-by-step explanation:
- Get Form 5(IF) from EPFO official website or get it from the nearest EPFO office.
- Fill in the necessary information about the dead member and the claimant.
- Also include these documents:
- Death certificate of the EPF member
- Legal heir/succession certificate
- Aadhaar and bank details of the claimant
- PAN card and proof of address Robotically the form has to be submitted to the EPFO office via the employer or directly if the employer cannot be reached.
- The EPFO will examine the claim and release the money to the legitimate heir.
The Importance of This
The majority of EPF members forget to update the nominee details; hence, the legal process would be complicated for families after their death. However, this guideline has been revised so that depending on the documentation done right, they can still access the EDLI benefit even in the absence of a nominee.
Conclusion
The most recent EPFO update regarding the claiming of ₹7 lakh EDLI insurance without a nominee is a significant move towards protecting the financial interests of the families of the employees. The legal heirs need to act fast, prepare the required documents, and go through the official procedure to claim the benefit. Regularly updating the nominee details can also eliminate the chances of complications in the future.
