Investment Plans 103 views May 6, 2021

ICICI Pru Group Superannuation Suraksha is a retirement plan for employees via which they will receive a retirement benefit. Also, the policy provides a life cover to each member, so in case of the unfortunate death of the insured member, his/her family gets financial support. Learn more about the features and benefits of the ICICI Pru Group Superannuation Suraksha Plan in this page below. So, read on!

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ICICI Pru Group Superannuation Suraksha Plan Options

The master policyholder (employer) can purchase this insurance plan by choosing any of the following schemes –

Defined Benefit (DB) Scheme

Here, the payable benefits are fixed and irrespective of the contribution made. For DB schemes, the contributions will be determined by the employer based on the Scheme Rules as per the actuary’s certificate submitted by the master policyholder in accordance with the AS15 (revised). If the fund is overfunded as per the actuary’s certificate, “nil contributions/premiums” may be allowed, and the policy shall not be treated as discontinued. In case of death, retirement or a member leaving the service before retirement, the insurer will pay the benefits as per the Scheme Rules.

Conditions for DB Scheme

  1. All claims shall be settled in consultation with the employer and the liability of the insurer is limited to policy funds. Your employer at its discretion may pay you a higher amount of benefit as per the Scheme Rules and the difference in the amount will be covered by the employer. The employer may leave the money in the policy fund and provide your annuity on the normal retirement age/vesting date as defined in the Scheme Rules.
  2. In case a claim exceeds 20% of the Policy Value at the start of the policy year, a notice period of one month will apply to ICICI Pru Group Superannuation Suraksha Plan. Such a notice period can be waived by the insurer.
  3. The Assured Benefit shall be applicable on the entire superannuation fund, and for DB schemes, the Assured Benefit = 100.1% x (sum of contributions )
  4. Employers will get the benefit of extra allocation with short-term funding under the DB scheme. The master policyholder can choose an extra allocation at inception. The extra allocation percentage (1%, 2%, 3% or 4%) is applied to the lower of contributions received during the first policy year. It shall be repaid from the Scheme Account on each policy anniversary in five equal installments equal to 20% of the Extra Allocation.

Note – Top-ups aren’t allowed unless mentioned in the actuary’s certificate.

Defined Contribution (DC) Scheme

In this scheme, the contributions are fixed irrespective of the benefits and member accounts. For DC Schemes, the employer makes contributions as per the Scheme Rules. The policy of each DC Scheme will have multiple member accounts. In the event of death/retirement, the employer will pay higher of the following –

  1. Member Account Value
  2. Assured Benefit as described

Condition for DC Scheme

  1. If a member leaves his/her service, the member account value will be credited to another superannuation fund as per Rules of the Scheme, and the employer will provide the annuity on the normal vesting age of the member as defined in the Scheme Rules.
  2. In case any benefits are not payable to members under any circumstances, the master policyholder will get the same.
  3. If a claim exceeds 20% of the Policy Value at the start of the policy year, a notice period of one month applies. The insurer can waive such a notice period.
  4. In the event of retirement/death of the member (excluding Voluntary Retirement Schemes floated by the employer) an Assured Benefit applies. The Assured Benefit = 101% of contributions made to a Member Account.

Annuity Purchase Option

The master policyholder maintains superannuation funds with more than one insurer. It shall purchase an ICICI Pru immediate annuity plan from the insurer unless it is permitted by the applicable regulation to purchase an annuity with any other insurer. The choice of annuities available under this plan is as follows –

  1.  Life Annuity
  2.  Life annuity with return of purchase price
  3.  Life annuity guaranteed for 5, 10 or 15 years.
  4.  Joint life last survivor annuity to the Life Assured and spouse
  5.  Joint life last survivor annuity to the Life Assured and spouse with Return of Purchase
  6. Price

Note – The annuity rates are not guaranteed in advance but will be determined at the time of vesting. Annuity payments shall be made only on the survival of the annuitant. Annuity types or options available at the time of buying an annuity may be different from the ones mentioned above.

ICICI Pru Group Superannuation Suraksha Contributions

The master policyholder can make contributions in one or more installments in a policy year. Contributions can be made through any of the following modes:-

  1. Cheques
  2. Demand Drafts
  3. Pay Orders
  4. Bankers Cheques
  5. Internet (Infinity of ICICI Bank / Bill Junction / Bill Desk)
  6. Electronic Clearing System (of RBI)
  7. RTGS

Free Look Period

You can review the Master Policy during the free look period (15 days) that will start from the date of receipt of the policy document. If you disagree with the terms and conditions of the policy, you can cancel it stating the reason for it. On such cancellation, the company will return the paid premium after deducting stamp duty charges and proportionate risk premium for the period of cover.

Note – If the Master Policy is purchased through Distance Marketing, the free look period will be 30 days from the date of receipt of the policy document.

Surrender

Employers may surrender this policy any time by giving a one-month notice to the insurer. Such a notice period can be waived by the insurance company as well. On surrender, a Surrender Value is paid to the master policyholder.

For DB/DC Schemes – Surrender Value = Assured Benefit.

Surrender Value = Policy Value (after MFR, AIR, FMC and Extra Allocation charge adjustments in respect of the current period) – MVA amount – Rupee value of Outstanding Extra Allocation – surrender charge

Note – Non-negative Residual Additions would be added to the surrender value, if applicable.

Important Notes

  1. The insurer will pay all benefits to the master policyholder
  2. For death benefit, the master policyholder needs to provide necessary information to the insurer
  3. A written request from the master policyholder must be sent to the insurer for alterations to the policy. Any amendment/modification will be effected only after a written acceptance by the insurer.

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