At present, under Employee’s Deposit Linked Insurance (EDLI) scheme, wherein employer contributes 0.50% of the basic pay as insurance premium every month to the EDLI scheme, employee gets the benefit equal to his provident account balance if the balance is upto Rs. 50,000 and if it exceeds Rs. 50,000 then account balance plus 40% of the balance. However there is a cap of Rs. 100,000 upto which the benefit can be availed. Prior to the year 2010, the maximum benefit available under this scheme was Rs. 60,000.
Edelweiss Tokio Life Insurance is a joint venture between Edelweiss Financial Services and Tokio Marine Holdings Inc. Edelweiss Financial Services is a diversified financial service company with businesses in credit, capital market, Asset Management, Housing Finance and Insurance. Tokio Marine Holdings Inc, is one of the oldest and biggest Insurance Company in Japan, with operations in life and non life and re-insurance business.
Employee’s Provident Fund Office (EPFO), on comparing the benefits between EDLI scheme and those under Edelweiss Tokio Life – Group Life Protection plan, found that the benefits under the later are more and better as compared to the former.
In view of the above, EPFO introduced Edelweiss Tokio Life Insurance to provide group term insurance plan in lieu of EDLI Scheme. Under the new regime, companies can give higher insurance of Rs. 1.32 lakh to its employees.
In addition to the above, EPFO issued a circular to all its officers stating that employers opting for Edelweiss Tokio Life – Group Life Protection plan would not be require to comply with EDLI Scheme 1976.