Investment Plans 260 views December 28, 2021

Exide Life Group Gratuity Plan safeguards your employees financially against unforeseen contingencies. This is a unit-linked life insurance policy that helps you build a corpus for your employees in a flexible and efficient manner. The key features of this plan are shown below –

  • Group Gratuity Fund Value Payable on Retirement, Incapacitation, Death while in Service, Withdrawal or Termination of service before the retirement age.
  • Loyalty Additions
  • 5 Fund Options

Read this page further to know more about the benefits of the Exide Life Group Gratuity Plan.

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Exide Life Group Gratuity Plan Benefits

Your employees will get the following benefits under the Exide Life Group Gratuity Plan.

Group Gratuity Fund Value Payment – In case of the following events, the company will provide you this benefit –

  • Retirement
  • Incapacitation
  • Death during employment (in this gratuity is paid to the spouse)
  • Withdrawal or termination of employment before the normal retirement age

This benefit can also be received in the following manner –

The accrued gratuity is based upon the service completed and computed as per the formula set out in the rules of the scheme. For this, Group Gratuity Fund Value (GGFV) units shall be cancelled. And such cancellation of units will happen in the same proportion as the value of units held in each fund. if the units are held in more than one fund.

Upon the death of the employee, the sum assured of INR 1,000 shall be payable to the beneficiary

Loyalty Additions – Based on the Group Gratuity Fund Value, additional units shall be allocated to the fund on the last working day of the policy monthly anniversary at the rate of 1/12th of the applicable rates as shown below:

Fund Value (In INR)Loyalty Additions as % of Fund Value (p.a.)
< 2 crore0
>= 2 Crore to < 10 Crore0.3
>= 10 Crore0.5

Exide Life Group Gratuity Plan Unit Linked Funds

You can invest your money in any of the following funds –

Liquid Fund – It offers stable returns to protect the invested capital.

Debt Fund – To get attractive income, you can invest in this fund that distributes your money across a diversified portfolio of debt and money market instruments of different maturities.

Secure Fund – Get long-term growth of capital and current income from a portfolio of equity and fixed-income securities by investing a maximum of 20% in equity and the rest in a diversified portfolio of debt and money-market instruments of different maturities.

Balanced Fund – Generates long-term growth of capital and current income from a portfolio of equity and fixed-income securities by investing a maximum of 40% in equity and the remaining in a diversified portfolio of debt and money-market instruments of varying maturities.

Growth Fund – You can get long-term growth of capital and current income from a portfolio of equity and fixed-income securities through investments in equity (60%) and the balance in a diversified portfolio of debt and money market instruments of varying maturities.

Eligibility Criteria for Exide Life Group Gratuity Plan

The employees should meet the below criteria to get the benefits under the Exide Life Group Gratuity Plan –

  • Minimum Age at Entry – 18 years
  • Maximum Age at Entry – Differ with each scheme in accordance with scheme rules, subject to a maximum of 79 years (as on the last birthday)
  • Minimum Maturity Age – 19 years
  • Maximum Maturity Age – Depend on each scheme in accordance with scheme rules, subject to a maximum of 80 years (as on the last birthday)

Note – The minimum size of the group should consist of 10 members. The minimum initial contribution is INR 1,00,000 per scheme, and there is no maximum limit. This amount is payable yearly, half-yearly, quarterly and monthly.

What Options are Available to the Policyholders Under the Exide Life Group Gratuity?

The employer who is the policyholder has the following options available under the Exide Life Group Gratuity Plan –

  • Switch funds from one to another at any time and any number of times
  • Surrender the policy and receive the fund value after the deduction of the surrender charge
  • Redirect future contributions towards one or more different funds
  • No top-ups are allowed unless top-ups are required as per the actuary’s certificate in accordance with AS 15 (Revised) to address the underfunding of the scheme
  • No contributions are allowed under this policy on the basis of a certificate from the Actuary that the scheme is overfunded.

Fees and Charges Applicable to the Exide Life Group Gratuity Plan

The insurance company will charge the following fees under the Exide Life Group Gratuity Plan –

Allocation Charge – The premium amount shall be allocated to the chosen funds and for this, the following fees will be charged based on the contribution –

ContributionContribution <= INR 2 CroresContribution > INR 2 Crores
Initial Contributions from the Past ServiceNILNIL
Ordinary Contributions for the First Policy Year 0.50%NIL
Ordinary Contributions for the Second Policy Year 0.50%NIL

Note – The above charges are guaranteed throughout the policy term.

Fund Management Charge – To manage your funds through the policy term, the insurer will charge 0.8% p.a. And this can be altered by the company, subject to a maximum of 1.35% as allowed by the Insurance Regulatory and Development Authority of India (IRDAI), by giving you a 30-day notice period before the approval.

Mortality Charge – To provide you life cover during the tenure, the company will charge a flat mortality charge of INR 1 per INR 1,000 Sum Assured. It remains guaranteed for the entire policy term. The insurance company will apply mortality charges by deducting the same from the cancellation of units at the prevailing unit price.

Suicide Clause

If the employee dies due to suicide within one year from the effective date of coverage or the entry date, the beneficiary will get the full death benefit.

Free Look Period

In case you disagree with any of the terms and conditions of the Exide Life Group Gratuity Plan, you can cancel the policy by writing to the company stating the reasons for disagreement within 15 days of the receipt of the policy document. After that, the you will get the paid premiums after the deduction of the medical examination fees (if any), stamp duty charges and proportional charges towards insurance risk cover.

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