There is no allocation charge.
Fund Management Charge
The Fund Management charges and the service tax on it will be priced in the NAV per unit (unit price) of each fund on a daily basis which will result into adjustment of NAV. The fund management charge for the fund options available are as follows:
||Segregated Fund Identification Fund (SFIN)
|Group Money Market Fund 2
|Group Balanced Fund 4
|Group Corporate Bond Fund 3
|Group Equity Fund 4
The insurance premium will be charged for the additional death benefit provided under this plan. The premium will depend on the attained age at start of policy year, gender, the amount of insured death benefit, occupation class and health of the member. The Insurance premium and the service tax on it will be recovered by cancellation of units at the prevailing NAV per unit (unit price) in advance at the beginning of each month.
The employer is allowed to effect four fund switches free of cost every year. Any additional requests will attract a charge of 0.1% of the amount switched, subject to maximum of Rs.5,000 per switch. This charge will be collected from the amount switched by cancellation of units at the prevailing NAV per unit (unit price).
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
Service Tax Charge
This charge 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 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.
The service tax charge on fund management charge will be priced in the unit price of each fund on a daily basis. The Service Tax charges on Insurance premium and Switching charges 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 governmental 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.
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 Leave Encashment Plus Plan – 121L083V02