What is EDLI?
All employees to whom the Employees' Provident Fund and Miscellaneous Provision Act, 1952 applies, have a Statutory liability to subscribe to Employees' Deposit Linked Insurance Scheme, 1976 to provide for the benefit of Life insurance to all their employees.
Under this scheme, the deceased employee’s insurance benefit will depend on the length of service and the PF balance in the account
THE BETTER ALTERNATIVE:
However, under Sec.17(2A) of the Act, the employer may be exempted from contributing to this scheme, if he/she has provided for better insurance benefits through alternative scheme. Exide Life Group Term Life in lieu of Employees' Deposit Linked Insurance Scheme (EDLI) has been accepted as one such better alternative.