The exact benefits in a scheme under 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
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.
The death benefit, is subject to a minimum of Rs. 1,000 for each member. An insurance risk premium will be charged for the death benefit. The 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, provided the employee has completed at least five years of service
4) Surrender/ Discontinuance of policy– If the employer / trustees decide to surrender their policy or the policy becomes discontinued because of deficit in the fund, Reliance Life Insurance Company Ltd. will pay a surrender/discontinued benefit equal to the fund value minus the surrender/discontinuance charges, if any
For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. UIN for Reliance Nippon Life Group Gratuity Plus Plan is 121L081V02.