InvestorQ : My relative has passed away due to COVID-19 and he was working in the private sector, apart from EPF, is there any financial aid available to the family of the deceased?
Manisha Mehta made post

My relative has passed away due to COVID-19 and he was working in the private sector, apart from EPF, is there any financial aid available to the family of the deceased?

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Nitin Shah answered.
4 weeks ago
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Well, there is. In case the deceased’s company has not opted out from the scheme, there is some financial aid available to his family.

Along with EPF contribution, the EPFO has mandated the private employers to contribute a nominal amount for the benefit of their employees in a scheme called Employees Deposit Linked Insurance (EDLI). Under this scheme, the employer contributed a specific amount towards an insurance cover for private salaried employees. The scheme benefits provide that the nominee/legal heir of the deceased will be eligible to receive an amount up to Rs 7 lakhs. The minimum cover under is Rs 2,50,000 and the maximum cover is Rs 7,00,000. The claim amount is 35 times the average monthly salary in the past 12 months, along with a bonus of Rs 1.75 lakhs, subject to a maximum of Rs 7 lakhs.

This is calculated based on the salary withdrawn in the last 12 months before the death of the employee. 
While calculating the maximum payout under the scheme, the average clause is applied and the employees’ nominee/legal heir is paid accordingly. Those who have a basic salary under Rs 15,000 are eligible for this scheme.

However, some companies opt out of the scheme if they have invested in a better insurance product than this. So, you should reach out to the deceased’s company and enquire about the investment in EDLI, or any other insurance product they might have taken for their employees.

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