ING Life's Group Gratuity Plan is a special way to reward your employee's
loyalty. Absence of a good gratuity funding mechanism can prove to be a financial
strain if you have to pay out huge amounts in any year. Having a group gratuity
plan enables you to meet your legal obligations of providing gratuity in a hassle
free manner. It not only helps you build healthy corpus, but also offers additional
insurance cover, to provide enhanced gratuity benefits in the event of unfortunate
death of your employee. This can be done in a tax efficient and hassle free manner
through this plan.
You can decide the type of investment strategy to accumulate adequate corpus to
provide for your employees gratuity benefits. For your convenience, we provide various
investment options. You can invest in one or more of such plans. Investment options
being,
Liquid plan
100% of the available funds are invested in short
term(with in one year of maturity)
debt and money market instruments.
Provides for liquidity and safety
Debt plan
100% of the available funds are invested in debt instruments (3 to 7 years)
Provides safety and growth with minimum risk
Secure plan
Up to a maximum of 20% of the available funds are invested in equity and the rest
in debt instruments
Provides for growth with low risk
Balanced plan
Up to maximum of 40% of the available funds are invested in equity and the rest
in debt instruments
Provides for higher growth with reasonable
security
Growth plan
Up to a maximum of 60% of the available funds are invested in equity and the rest
in debt instruments
Provides for opportunity of high growth
You also have the flexibility to review investments periodically and switch investments
from one plan to another. Two switches per policy year are offered free of cost.
You have the advantage of additional insurance cover to provide full service gratuity
in the event of an employees' unfortunate death before retirement.
It is a hassle free process. Reduces administrative work, as we take care of it
Better returns of being part of the huge ING Life's investment portfolio
We offer actuarial help in assessing periodic liability to enable you to have proper
funding plan
It provides additional insurance at a little extra cost, which will enhance benefits
in case of unfortunate death of employee
An opportunity to design tax efficient employee benefits with inputs from experts
in various fields like investments and actuaries
It helps build customized solutions to meet specific needs
*Income tax benefits: You can contribute upto 8.33% of annual wage bill and claim
tax exemption for the same under Sec 36(1)V of Income Tax Act, 1961. Investment
income on such investments are exempt from tax under Sec 10(25)iii of Income Tax
Act, 1961.
For your employees
Enhanced gratuity benefits by way of additional insurance
cover in case of death before retirement - it means full
gratuity even in case of early death
Funds secure - managed by experts
Periodic valuation of the Gratuity Fund by our actuaries
to ensure adequate fund is available to pay benefits -
a reassurance that fund is secure
Initial Contribution This Contribution is payable in respect of members who have
to their credit, past service with the Employer. The contribution can be paid in
lump sum or in annual installments not exceeding 5 years or as agreed between the
Policyholder and the Company.
Ordinary contributions This is the regular contribution payable each year to secure
the gratuity benefits on account of future service.
Premium This is the amount payable to secure the life cover. The life cover shall
be as per the scheme rules and can either be flat cover or future service gratuity.
The Initial and Ordinary Contributions will be expressed as a % of the salary bill
and subject to limit of 8.33% of total salary including PF according to Income Tax
Rules 87 and 88 (part XIII of IT Rules 1962).
Contribution and premium frequency
The Ordinary contribution and Premium are generally payable in advance. We may allow
the contribution and Premium to be paid half yearly, quarterly or monthly. The Initial
Contribution is payable in lump sum or in flexible installments as agreed by the
company over a period not exceeding 5 years.
Switches
Two switches per policy year offered free of
cost.
Section 41 of the Insurance Act, 1938 states:
No person shall allow or offer to allow, either directly or indirectly, as an inducement
to any person to take out or renew or continue an insurance in respect of any kind
of risk relating to lives or property in India, any rebate of the whole or part
of the commission payable or any rebate of the premium shown on the Policy, nor
shall any person taking out or renewing or continuing a Policy accept any rebate,
except such rebate as may be allowed in accordance with the published prospectuses
or tables of the insurer.
Any person making default in complying with the provisions of this section shall
be punishable with fine that may extend to five hundred rupees.
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
