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  • 5 Reasons
    To Buy
  • Benefits
  • How this
    Plan Works

The Indian Government introduced the Payment of Gratuity Act in 1972. Generally gratuity accrues at a rate of 15 days last drawn salary per year of service for each employee or as defined by the trust deeds. Gratuity is payable immediately on cessation of employment, provided the employee has continuous service of at least five years. The five year provision does not apply on death or disablement of the employee. Gratuity, by nature is a medium to long-term liability of the employer and accordingly an appropriate medium to long-term investment strategy should be adopted by the trustees to match assets and liabilities.

Liability for your employees’ gratuity is often difficult to forecast accurately and manage well. While doing so you may come across some pertinent questions: What is my true liability for employees’ gratuity? How do I manage this liability? Are my gratuity assets professionally managed?

We, at Reliance Life Insurance Company Limited, provide you with gratuity fund management services to meet your gratuity liabilities towards your employees as described in the trust deed, coupled with future service gratuity.

  • 1

    A minimum guaranteed interest rate, referred as Minimum Floor Rate equal to 2.5% on the premiums/contributions paid into the Policy Account on a pro-rata basis

  • 2

    The plan will assist your Corporate to manage your gratuity liabilities





  • 3

    Receive an additional interest amount based on the Additional Interest Rate at the end of every financial year

  • 4

    Tax benefits under the policy will be as per the prevailing Income Tax laws. Tax laws are subject to amendments from time to time and interpretations. You are advised to consult a Tax expert

  • 5

    Where the scheme is at surplus, the insurer may allow "nil Contribution/Premium" under the insurance contract


Disclaimer

For more details on risk factors, terms and conditions please refer sales brochure carefully before concluding a sale. UIN for Reliance Nippon Life Traditional Group Assure Employee Benefits Plan:121N047V02

Benefits

Under every policy, there will be a minimum death benefit of Rs. 10,000 per member. All other benefits payable under this product are governed by trust deed and rules of the individual employer’s gratuity scheme and the quantum of benefits payable may vary for each individual employer.

The exact benefits under a scheme of this plan will depend on the individual employer’s gratuity scheme. Generally, the contingencies for benefit payment and the benefit level will be as given below:

1. Retirement of the employee–Broadly, this benefit is equal to 15 days’ salary at the time of retirement for each year of past service of the retiring employee, and may be subject to a maximum of Rs. 10,00,000 or as per the scheme rules.

2. Death / disability of the employee in service –Broadly, this benefit is equal to 15 days’ salary at the time of death for each year of past service of the employee up to the time of death / disability, and may be subject to a maximum of Rs. 10,00,000 or as per the scheme rules and the sum assured.
Further, the employer can choose to give the gratuity for each year of future service up to retirement or can choose for each member a uniform level of cover, as an additional death benefit subject to the minimum of Rs. 10,000 per member. Mortality charges plus the service tax, as applicable, on the Mortality charges will be charged for the additional death benefit and will be deducted monthly in advance from the Policy Account. The additional death cover ceases immediately on a member leaving a scheme.

3. Resignations / early termination of service of the employee – Broadly, this benefit is equal to 15 days’ salary at the time of resignation of the employee for each year of past service up to the time of his resignation, and may be subject to a maximum of Rs. 10,00,000 or as per the scheme rules, provided the employee has completed at least five years of service. If the employee has served for less than five years, it may be nil.

Disclaimer

For more details on risk factors, terms and conditions please refer sales brochure carefully before concluding a sale. UIN for Reliance Nippon Life Traditional Group Assure Employee Benefits Plan:121N047V02

HOW DOES THE PLAN WORK ?

  • The gratuity contribution payable under a policy will be based on the actuarial valuations of the individual employer’s gratuity scheme provided by an independent qualified actuary
  • The Company will earmark assets for this product separately and the Policy Account under the product shall be disclosed on a daily basis in the company’s website through specifically assigned identification number (SAIN) for the fund for this product.
  • The past service gratuity liability contribution can be paid either in a lump sum or in installments spread over not more than 5 years.
  • The contributions may be made monthly, quarterly, half yearly or yearly.
  • A Policy Account will be maintained in respect of every scheme as a whole. No record will be maintained of contributions in respect of individual members under the scheme.
  • Shadow policy account value shall be maintained on daily basis. Such shadow policy account shall be computed based on the actual accruals of all income elements like premiums, income from investments as and when received and all actual debits from the policy account value as and when debited, to arrive at the actual gross investment return and reduction in yield to the policy account value, at the end of each policy year.
  • An insurance cover shall be provided under the scheme and life insurance premium shall be deducted in advance on monthly basis from the Policy Account. The mortality charges will be reviewable at each annual renewal date.

Policy Account

The Policy Account will be credited with
  • Contributions paid by the policyholder from the date these contributions were received and invested by us
  • Guaranteed non-zero interest amount derived from Minimum Floor rate of 2.50% p.a. at the end of every year where year shall mean the financial year.
  • Additional interest amount derived from Additional Interest Rate of 0.01%, at the end of every year where year shall mean the financial year.
  • Non-zero positive residual additions, if any, will be credited in order to meet the maximum reduction in yield as stipulated in Regulation 37 of IRDA (Linked Insurance Product) Regulation, 2013 at maturity or at the end of each policy year from year 5, whichever is earlier

 

Minimum Floor rate and Additional interest rate shall be credited to the policy account on pro-rata basis at the end of every financial year. 

The investment return, once declared and credited to the account becomes guaranteed.

The Policy Account will be debited with

  • Fund Management Charges
  • Benefits paid as and when these arise (except the payment of the insured death benefits)
  • Taxes, duties or surcharges or whatever description levied by any statutory authority
  • Mortality Charges


Disclaimer

For more details on risk factors, terms and conditions please refer sales brochure carefully before concluding a sale. UIN for Reliance Nippon Life Traditional Group Assure Employee Benefits Plan:121N047V02

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  • Shivrana Jinsiwal

    Patna

    “I am sure about the benefits that I will get after maturity...“

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    Mumbai

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    Karnataka

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