As an employer, are you looking for an insurance product to help you manage things like employee benefit and all (gratuity, leave encashment, etc.) for your staff members? To help you with the same Bajaj Allianz has brought Group Employee Care. It is a variable, traditional, non-participating, non-linked, fund-based insurance plan. It is especially designed to facilitate substantial fund building, which in turn ensures hassle-free fulfillment of your liabilities, one of the main duties of a responsible employer.
The main feature of the policy
The policy offers a GIR (Guaranteed Interest Rate) as well as an AIR (Additional Interest Rate). The former would remain as it is for the total period of your policy, whereas the latter might be decided by the insurance provider at the commencement of every financial quarter.
How does the insurance product work?
Your contribution (payment) toward the policy, in regard to your employee, would be taken care of and maintained in a PA (Policy Account) under the plan.
From that payment part of yours, premium allocation fee, service tax (if applicable) and cess would be deducted. Thereafter, the remaining amount would be credited to your PA.
Also, applicable service charges, cess, mortality charge would be deducted from your PA/month.
The company would provide you with a Guaranteed Interest Rate of 1.5 percent compounding every year as long you have your policy with the same insurance company.
Apart from the GIR, an AIR might also be declared by the insurance provider at the beginning of every financial quarter for that particular term or quarter. So, your PA would first of all get credited with GIR and then AIR, as declared, if any.
The charge for fund management and other applicable charges would be deducted from your PA as a proportion of your balance, at the end of every financial quarter or upon policy surrender.
The PA would be the accumulated amount of the premiums paid by you minus the premium allocation fee, mortality charge minus fund management charge and other applicable charges.
What are the benefits payable?
Death Benefit
Unfortunately, if an employee dies while in service and before his or she expected date of retirement, then the benefits payable would be the equivalent value of the sum insured along with the reimbursement payable from the PA, according to the rules of the plan for that particular employee.
Other Benefit
In situations other than demise, such as resignation, termination or retirement, the benefits payable would be as per your decision according to the scheme rules. The same would be paid from your PA.
Surrender Benefit
You can easily opt from complete policy surrender by giving prior notice of 3 months to the insurance provider. On doing you, you would get the surrender benefit. It would be your PA balance minus surrender fine (if any) minus MVA (if any). After you have received the benefit, the policy would automatically terminate.
If you happen to surrender your plan with the initial 3 months of the policy terms, the penalty of surrender would be less than 0.05 percent of the PA balance and Rs. 500000. Or else, no penalty would be charged.
Some crucial information regarding eligibility
|
Criteria |
Details |
|
Group Size (Min.) |
10 people |
|
Age of Entry of the Member |
Minimum – 18 Years |
|
Maximum – 79 Years |
|
|
Maturity Age of the Member (Min.) |
80 Years |
|
Sum Insured of the Member |
Minimum – Rs. 1000 |
|
Maximum – No Limit |
|
|
Policy Term (Min.) |
Yearly Renewable |
|
Frequency of Regular Contribution |
1 year, 6 months, 3 months and per month |
|
PA Balance |
Minimum – Rs. 1, 00, 000 |
|
Maximum – No Limit |
Some important questions
What is Bulk Exit?
With respect to any event, as specified in the rules of the scheme, if the total sum on exit in a policy term (also the present exit sum) is more than 25 percent of the balance in your PA, as on at the start of the policy term, such an event or exit is called a Bulk Exit. MVA (Market Value Adjustment) would be applicable only for the sum that’s over and more than the sum demonstrating the bulk exit. Any MVA deficits would be adjusted from the PA.
What is Market Value Adjustment?
It is a factor that’s formulated for covering the losses in market value of the basic investment in regard to the PA balance.
