Fund Management Charges
|Group Money Market Fund 2
|Group Balanced Fund 4
|Group Corporate Bond Fund 3
|Group Equity Fund 4
The Fund Management charges will be priced in the unit price of each Fund on a daily basis. The fund management charges are not guaranteed. The Fund Management Charges can be increased up to 1.35% per annum. However, any changes to the fund management charges shall be subject to Insurance Regulatory Development Authority (IRDA) approval.
Insurance premium will depend on the attained age at start of policy year, gender, the amount of insured death benefit and occupation class. The insurance premium will be recovered by cancellation of units at the prevailing unit price in advance at the beginning of each month.
Transferring (switching) from one investment fund to another can be done at any time. You can make up to four switches free of charge each year. Any switch above this will attract a charge of 0.1% of the switched amount subject to maximum of Rs. 5000 per switch. This charge is recovered by canceling units.
The surrender/discontinuance charges will be levied in line with IRDA circular. These charges are as follows:
||Surrender/Discontinuance Charges (% of Fund Value)
|Year 1 to 3
||Minimum of 0.05% of Fund Value or Rs. 500,000
These charges are levied only if the employer / trustees decide to surrender/discontinue the policy with Reliance Life Insurance Company Limited.
Service Tax shall be levied on the Insurance premium, Switching Charge and Fund Management Charges. The level of this charge shall be as per the rate of Service Tax, declared by the Government from time to time. The current rate of service tax on insurance premium is 12.36% (12% for service tax and 3% education cess) as on June 15, 2013. As per the service tax norms, the service tax on Fund management charge is applied on actual fund management charge or the maximum fund management charge fixed by the IRDA, whichever is higher.
Service Tax shall be collected as below:
1. Service Tax on Fund Management Charge will be priced in the unit price of each Fund on daily basis.
2. Service Tax charge on Insurance Premium and Switching charge will be recovered by cancellation of units at the prevailing unit price.
Charges Levied by the Government in Future
In future the Company may decide to pass on any additional charges levied by the government or any statutory authority to the policyholder. Whenever the company decides to pass on the additional charges to the policy holder, the method of collection of these charges shall be informed to them.
In the event that units are held in more than one Fund, the cancellation of units will be effected in the same proportion as the value of units held in each Fund. In case the fund value in any fund goes down to the extent that it is not sufficient to support the proportionate monthly charges, then the same shall be deducted from the fund value of the other funds.
Revision in Rate of Charges
1) The revision in charges if any (except the service tax charge) will take place only after giving three months notice to the policyholders and after obtaining specific approval of the IRDA
2) The service tax charge will be revised as and when notified by the Government
3) If the policyholder does not agree with the modified charges, they shall be allowed to withdraw the units in the plans at the then prevailing unit price after paying surrender charge if any and terminate the policy
4) The Company reserves the right to change the Fund Management charge. However, the maximum FMC on any fund will be 1.35% p.a.
5) The fund switching charge (when applied) is guaranteed to be 0.1% of the amount switched, subject to a maximum of Rs. 5,000.
6) The base insurance premium charges and surrender/ discontinuance charges for the additional insurance death benefit are guaranteed for the policy term.
For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. UIN for Reliance Group Gratuity Plus Plan is 121L081V02.