ING Life Insurance's Group Insurance Scheme in lieu Employees Deposit Linked
Insurance of Provident Fund department is a special way of extending an enhanced
life insurance cover to your employees, while reducing cost. The scheme offers a
higher life cover to your employees without linking to the Provident Fund balance.
Insurance benefit would be higher than the actual
Provident Fund balance of the
employee.
Premiums are based on age and not on
level of monthly wages, thereby making premiums
lower than the total contributions being paid to Regional Provident
Fund Commissioner under A/c 21.
Lower premiums give the employer the option to save
costs while maintaining the level of cover or increase the cover at the same
cost incurred under Employee Deposit
Linked Insurance Scheme of Provident Fund.
Lower premiums give the employer the option to save
costs while maintaining the level of cover or increase the cover at the
same cost incurred under Employee Deposit
Linked Insurance Scheme of Provident Fund.
Insurance cover can be provided up to Rs.1, 50,000/-.
After taking Group Insurance from ING Life Insurance,
the company need not pay the statutory contribution to Regional Provident
Fund Commissioner under A/c 21 and contributions under A/c 22 gets
reduced to 0.005%.
Claim settlement is faster and procedures are simpler.
Tax exemption - Premiums paid by employer are treated as
normal business expenses for Income Tax purposes.
Premium paid for Employee Deposit Linked Insurance
under Employee Provident Fund Miscellaneous Provisions Act is not treated
as perquisite vide Sec 17(2)(v) of IT Act, 1962.
Employee Deposit Linked Insurance Scheme in Provident Fund
ING Vysya Group Insurance Scheme in lieu of Employees Deposit Linked Insurance
1.
a) Quantum of benefits is limited to average balance in the Provident Fund A/C
in the preceding 12 months.
b) Up to Rs.35, 000/-, the actual quantum of Provident Fund balance
Above Rs.35, 000/-, Rs.35,000/- + 25% of the amount in excess of Rs.35,000/- subject
to a maximum of Rs.60,000/-
1.
a) A Flat cover of Rs.62,000/- orAs decided by employer within the range of Rs.62000/-
to Rs.1,50,000/-
b) A higher sum assured without linking it to Provident Fund balance at a minimum
of Rs.62,000/-
2. Benefits payable on Death only
2. Benefits payable on Death only
3.Contribution remains the same 0.5% under A/c 21 & 0.01 % under A/c 22 of monthly
wage bill.
3. Premium depends on age and amount for which Insurance cover is granted. After
switch over, A/c 21 need not be paid to Provident Fund & A/c 22 gets reduced
to 0.005%
All Employer Employee groups contributing to Provident Fund
Cover Limit:
Minimum Rs.62000/- maximum Rs.1,50,000/-
Participation:
Compulsory for all members of Provident Fund
Minimum age:
18 years at entry
Maximum age:
64 (last birthday) Could be increased in special cases
Death Benefits:
Death benefit on death of the member will be paid to the legal heirs of the policyholder
Cover will commence on the policy commencement date and cease on the policy anniversary
or on earlier exit by the member.
Death benefit not taxable u/s 10(10D).
Exemptions from Employee Deposit Linked Insurance
As per section 17(2A) of the Employee Provident Fund and Miscellaneous Provisions
Acts 1952, exemption can be granted from the provisions of Employee Deposit Linked
Insurance if the employer arranges for better alternate benefits under a Scheme
of insurance with an insurer.
Employees Provident Fund Organization has approved ING Life Insurance’s
Group Insurance Scheme in lieu of Employee Deposit Linked Insurance Scheme of Provident
Fund as a better alternate, vide approval No C-V/4/ Employee Deposit Linked Insurance/Amendment/ING
VYSYA/2004/ dated 24th August 2004.
Scheme Installation:
Company to put up a notice on the company notice board that they are going in for
ING Life Insurance’s Group Insurance in lieu of Employee Deposit Linked
Insurance.
The Company to apply to the Regional Provident Fund Commissioner under Sec 17 (2A)
of the Employee Provident Fund and Miscellaneous Provisions Act 1952 to exempt the
company from Employee Deposit Linked Insurance Scheme.
The above content outlines one of the group insurance solutions offered by ING Vysya
Life Insurance Company Limited. For more details & enquiries, please contact Jayashree Soundararajan at 91-80-25005521 or mail jayashree.soundararajan@inglife.co.in
