We may delay encashing units from a fund if it is necessary to do so in order to maintain fairness and equity between unit holders remaining in, and unit holders leaving a fund. Where this applies, we may delay encashing all or part of the funds for up to 30 days. If we delay the encashment, we will use the unit prices that apply on the day on which the encashment actually takes place.
Special rules for large transactions
For a very large transaction above a threshold level, in order to maintain equity and fairness with all unit holders, we may choose to apply special treatment for all transactions, which involve purchase or sale of underlying assets. The number of units allocated may reflect the expenditure incurred in the actual market transactions which occurred. The value of units obtained from encashment may be the actual value obtained as a consequence of the actual market transactions which occurred. Transactions may occur over a number days. The threshold level will vary from time to time, depending on, amongst other matters, the liquidity of the stock markets. Our current threshold for large transactions will be Rs.50,000,000 for a fund predominantly investing in Government securities and Rs.25,000,000 for a fund investing in highly liquid equities.
We reserve the right to value less frequently than daily in extreme circumstances, where the value of the assets may be too uncertain. In such circumstances we may defer valuation of assets until normality returns. Examples of such circumstances are:
a) When one or more stock exchanges which provide a basis for valuation for a substantial portion of the assets of the fund are closed otherwise than for ordinary holidays
b) When, as a result of political, economic, monetary or any circumstances out of our control, the disposal of the assets of the unit fund are not reasonable or would not reasonably be practicable without being detrimental to the interests of the remaining unit holders.
c) During periods of extreme volatility of markets during which surrenders and switches would, in our opinion, be detrimental to the interests of the existing unit holders of the fund.
d) In the case of natural calamities, strikes, war, civil unrest, riots and bandhs.
e) In the event of any force majeure or disaster that affects our normal functioning.
f) If so directed by the IRDA.
Allocation of units
The company applies premiums/contributions to allocate units in one or more of the unit linked funds in the proportions which the policyholder specifies. The allotment of units to the policyholders will be done only after the receipt of premium/contributions proceeds as stated below;
In case of New Business, units shall only be allocated on the day the proposal is completed and results into a policy by the application of money towards premium/contributions.
In the case of renewal premiums/contributions, the premium/contributions will be adjusted on the due date, whether or not it has been received in advance. (This assumes that the full stipulated premium/contributions is received on the due date.) Renewal premiums/contributions received in advance will be kept in the deposit account and will not earn any returns until the renewal premium/contribution due date on which the same will be applied to the unit funds.
In respect of premiums/contributions received or funds switched up to 3.00 p.m. by the company along with a local cheque or a demand draft payable at par at the place where the premium/contributions is received, the closing unit price of the day on which the premium/contributions is received or funds switched, shall be applicable.
In respect of premiums/contributions received after 3.00 p.m. by the company along with a local cheque or a demand draft payable at par at the place where the premium/contributions is received, the closing unit price of the next business day shall be applicable.
In respect of premiums/contributions received with outstation cheques or demand drafts at the place where the premium/contributions is received, the closing unit price of the day on which cheques/demand draft is realised shall be applicable.
Cancellation of units
To meet fees and charges, and to pay benefits, the company will cancel the units to meet the amount of the payments which are due. If units are held in more than one unit linked fund, then the company will cancel the units in each fund to meet the amount of the payment. The value of units cancelled in a particular fund will be in the same proportion as the value of units held in that fund is to the total value of units held across all funds. The units will be cancelled at the prevailing NAV per unit (unit price).
In respect of valid applications received (e.g. surrender, benefit payment, switch out etc) up to 3.00 p.m. by the insurer, the same day's closing unit price shall be applicable.
In respect of valid applications received (e.g. surrender, benefit payment, switch out etc) after 3.00 p.m. by the insurer, the closing unit price of the next business day shall be applicable.
The unit price for each segregated fund provided under this product shall be made available to the public in the print media on a daily basis. The unit price will also be displayed in the web portal of the company.
Surrender of policy/Discontinuance of leave encashment liability contributions
If the employer/trustees decide to surrender their policy, Reliance Life Insurance Company Ltd. will pay a surrender/discontinuance benefit equal to the fund value minus the surrender/discontinuance charges, if any.
For the Leave Encashment scheme, where the fund is at surplus, the insurer may allow "nil/contributions/premiums" under the insurance contracts based on the actuary's certificate in accordance with AS15 (Revised) and such contracts shall not be treated as discontinued contracts. Otherwise the contracts will be treated as discontinued contracts.
Even on non-receipt of premium, the policy will automatically get renewed at the then existing terms and conditions on each renewal date, provided there is enough balance in the policy account as per the scheme rules.
Payment of leave encashment liability contribution
The permitted modes of payments of leave encashment liability contributions are yearly, half-yearly, quarterly and monthly. The initial contribution for leave encashment liability can be paid either in a lump sum or in installments spread over not more than 5 years. The regular leave encashment liability contribution will be based on an actuarial valuation of the leave encashment scheme of the employer.
Additional death benefit option
In addition to the minimum death benefit of Rs.1,000 per member, the employer can opt to offer additional death benefit. The additional death benefit can be flat sum assured, flat sum assured based on grade, fixed multiples of annual salary, etc. An insurance premium along with service tax, as applicable, will be charged for the additional death benefit. The insurance premium will be collected by cancellation of units monthly in advance. Insurance cover ceases immediately on a member leaving a scheme.
The policyholder will have the flexibility to alter the allocation of his/her investments among the funds offered in order to suit his/her changing investment needs by easily switching between the funds. At any time during the policy term, the policyholder may instruct the Company, in writing, to switch some or all of the units from one unit linked fund to another. The company will give effect to this switch by cancelling units in the old fund and allocating units in the new fund. In respect of switching requisition received up to 3.00 p.m. by the company, the closing NAV per unit (unit price) of the day shall be applicable. In respect of switching requisition received after 3.00 p.m. by the company, the closing NAV per unit (unit price) of the next business day shall be applicable. The policyholder is entitled to four free switches each policy year. Unused free switches cannot be carried forward to the following year.
Leave encashment contribution redirection
A policyholder may instruct us in writing to redirect all the future Leave Encashment contribution under a policy in an alternative proportion to the various unit funds available. Redirection will not affect the allocation of contributions(s) paid prior to the request.
Addition of new members
New members will be allowed to join at any time during the tenure of the policy. The insurance cover in respect of members will start from the date of joining. Notice of new members must be signed by the master policy holder. All fulltime members are invited to join the Policy at the master policy holders' invitation. The amount towards leave encashment contribution will be advised by an independent actuary.
Top up Contribution
No Top up contribution will be allowed unless required as per the actuary's certificate in accordance with AS15 (revised), to address under funding of the scheme.
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