7/30/2019 Lim Prsntn
1/14
GROUP SAVING LINKED INSURANCE
SCHEME Insurance protection + saving.
Product sold depending upon the status of theemployee in the company.
Saving contribution returned within interest at thetime of retirement.
In case of death during service, the amount for whichthe member was covered at the time of death &
accumulated saving will be paid
7/30/2019 Lim Prsntn
2/14
Group superannuation Contribution made by company towards pension
benefit of an employee
- Attainment of certain age- Retirement
- Cessation of service
- Event of death
7/30/2019 Lim Prsntn
3/14
Using a trust fund
Entering a group supperannuation scheme
arrangement with insurance company Tax exempt upto 15%
7/30/2019 Lim Prsntn
4/14
Group Gratuity Scheme Gratuity is a payment that the company makes to
the employee at the end of the service. It consist of
the addition to the provident fund and otherretirement benefits.
This scheme is available to an employee on
Retirement
Cessation of service
Event of death
7/30/2019 Lim Prsntn
5/14
It is compulsory for a company which is coveredunder the payment of gratuity act ,1972 to paygratuity for every half month salary for everycompleted year of service.
An employer may pay gratuity through
Out of internal reserves
Out of a trust set up for administering the funds
Tax exemption is allowed in these funds
7/30/2019 Lim Prsntn
6/14
Administered by trust
Employer contributes
Gratuity payment does not come under the preview ofinsurance business.
It is linked with gratuity.And this is known as Gratuity cum Life assurance
Scheme
Imp. Employee who die in service.
Ensuring full amount to the nominees or heirs.
7/30/2019 Lim Prsntn
7/14
Met Group Gratuity
Unit Linked Insurance Plan It offers a comprehensive solution for employers to
outsource gratuity management in an effective andintegrated manner.
Benefits-Maturity benefits
In case of retirement, resignation/termination, anddisablement etc.
In case of death of Member.In case the account balance is not sufficient to pay the
stated benefits
7/30/2019 Lim Prsntn
8/14
Services Offered
Choice of two linked Funds - Debt Fund and BalancedFund.
MetLife India would provide statement of accountonce in a year.
Switching facility between the two Funds.
Facility to pay the gratuity contribution (both pastservice liability and current
service cost) in installments.Assistance with legal, tax and accounting services.
Annual actuarial valuation to determine contributionunder the Scheme.
7/30/2019 Lim Prsntn
9/14
Fund Management Charges
7/30/2019 Lim Prsntn
10/14
Premium Allocation Charges The maximum Premium Allocation Charge is
0.50% of the Initial Contribution, and
2% of the Annual Contribution
7/30/2019 Lim Prsntn
11/14
What is EDLI?
All employees to whom the Employee's Provident Fund andMiscellaneous Provision Act , 1952 applies, have a Statutoryliability to subscribe to Employee's Deposit LinkedInsurance Scheme, 1976 to provide for the benefit of Life
insurance to all their employees. Under the scheme the insurance benefit is equal to the
average balance to the credit of the deceased employee inthe Provident Fund during the last 12 months.
Thus if the length of service is not adequate and/ or thesalary is low the average balance may be substantially lessand such the benefit to the employee's family is eitherinadequate or non-existent.
7/30/2019 Lim Prsntn
12/14
ADVANTAGES TO THE EMPLOYER :
The premium payable by the employer is usually less than the total
contribution being paid by the employer to R.P.F.C; particularly whenthe salary level is high and average age of the group is low.
Settlement of claim is quicker, LIC requires only the death certificateand the Claim Form from the employer.
Premium paid by the employer is treated as normal business expensesfor Income-Tax purpose.
ADVANTAGES TO THE EMPLOYEE:
Each employee is covered for a sum assured ranging between 5,000 to2,00,000 depending upon the current salary.
.Every employee/ worker can be covered for a uniform sum assuredwhich will be decided depending upon the group size.
7/30/2019 Lim Prsntn
13/14
7/30/2019 Lim Prsntn
14/14
Top Related