In this policy, the investment risk in
investment portfolio is borne by the policyholder.
Gratuity: The Loyalty Reward
Loyalty pays. And the proof
is Gratuity. It's a statutory benefit to the employees under the Gratuity Act,
1972. According to this Act, the employee becomes eligible for 15 days pay for
each completed year of service. This is payable on death of the employee during
his tenure of service or if the employee retires after 5 years of continuous
service.
Gratuity benefits are a statutory liability for any organisation
and tend to increase annually as the salaries and tenure of employment
increase. In the case of growing organizations, Gratuity benefits can work out
to a substantial amount. If the employer pays the Gratuity benefit from its
day-to-day operations it can become difficult to meet this liability on a
sustainable basis. Therefore, it makes sense to have a Gratuity Fund. Call it
prudent financial planning that is beneficial both to the employer as well as
the employee.
For the first time in India, Birla Sun Life Insurance brings
Group Gratuity Plan that is beneficial in more ways than one.
Unique Features
More for less through Efficient Returns
We offer an opportunity to earn
market-linked returns on the Gratuity contribution. A healthy market-linked
return can help augment the asset base and can decrease your future
contribution to the Gratuity Fund.
The asset allocation flexibility between various Investment
Funds gives you the added advantage of efficient investment management. These
multiple fund options and the facility to switch among them give you a further
opportunity to optimize your returns as per your outlook based on market
trends.
Choose your fund. Choose your future.
The Unit-Linked platform offers the
benefit of nine Investment Funds. You can select the fund of your choice for
your contribution. Additionally, your contribution can be allocated in various
proportions to any of the nine funds. You may use a combination of all the nine
funds or use the few that best meet your investment outlook and needs.
Manage your risk. Protection Fund option
Amongst the nine fund options, we
also offer you an opportunity to preserve the capital. The Protection Fund
option provides a guarantee on the NAV at which Units are allocated, on all
contributions (less any redemptions), which have been invested in this fund
option for a period of 3 years or more.
Initial Allocation
We offer unique value added benefit of
additional units up to 5% of the initial contribution.
Feel free to Switch Funds
To enable you to manage the risk and
optimize the returns based on market performance, you have the option of
changing the allocation in various funds. This further helps you earn better
returns and make your money work harder.
We provide four free switches during one year where you can change the fund
options. Additional number of switches is possible at a nominal switching
charge.
Freedom of Premium Redirection
To help you to manage risks and
optimize the returns based on market performance, the policyholder has the
option of changing the percentage of allocation in various funds after
completion of the first policy year. This further helps to earn better returns
and make your money work harder.
Easy Investment Tracking
To enable your employees to
track the status of their investment and growth, an annual investment statement
is sent to each employee.
You can track your investment easily on www.birlasunlife.com using your unique
customer ID and password, which will be provided to you.
Easy Installments: Freedom from anxiety
We provide you the facility to fund
your past gratuity liability contribution in easy installments.
Future Service Gratuity: Life Insurance Cover
Life Insurance cover equal to future
service gratuity and future PF contribution, if any or flat/graded cover will
be added. The premium for Term insurance cover will be computed separately.
Insurance cover will be paid only on the death of the member.
Future Service Provident Fund: For extra Life Insurance cover
As in the case of Gratuity, you can
also provide Life Insurance cover to the extent of Provident Fund to cover the
unfortunate death of an employee. The Provident Fund benefit will be payable
for the full deemed service till retirement age.
Retirement Benefits: Comfort to your employees
Gratuity benefits are payable on
retirement, resignation, termination or the unfortunate death of an employee
based on the pre-defined formula. The Gratuity benefit payable will be as per
the Gratuity Act, 1972. However the employer may also provide a higher benefit
formula.
Services Offered
4 free switches in a year
Any time switch option available.
CIP/TPINS are issued to the group policyholder so
as to empower them to check their fund account, derive absolute rate of returns
etc. The client can also place requests for change of address, switch of funds
etc.
Policy Account Statement is issued at the end of
every policy year
Option to invest in single fund or multiple funds.
Income Tax Benefits
As per current
legislation, the employer may contribute up to 8.33% of annual wage bill and
claim it as deductible business expense under section 36 (i)v of the Income Tax
Act, 1961.
Employer may claim the entire initial contribution up to 8.33% of the
employee's salary for each year of the past service. Income on investment is
exempt from tax under section 10(25) (iii) of the Income Tax Act, 1961.
Ready Reference
a)
Eligibility
All employers may subscribe to
this plan to provide Gratuity benefit to their employees. Employees above the
age of 18 can benefit under this plan and there is no maximum age limit.
b)
Contribution & Premiums for Life
Insurance Coverage
The Trust will make the contribution to
the fund. Contributions as well as Life Insurance Coverage premiums can be made
monthly, quarterly, half-yearly or annually. There is no minimum contribution
and the minimum sum assured is Rs 1000 per member. The minimum policy term for
contributions is five years.
c)
Past Service Contribution
For the organisation intending to set up a
new fund, the contribution to provide for the past service liability can be
made based on an actuarial valuation . This past service contribution may be
paid in installments to establish the Gratuity Fund.
d)
Choose your investment option
The contributions will be credited to the
Group Account. Policyholder can allocate the contribution to one fund option or
allocate in various proportions to the nine different funds.
BSLI Funds
Contributions made on
behalf of each Member will be invested in one or more of the nine BSLI Funds
currently offered: Protection Fund, Money Market Fund, Floating Rate Fund,
Fixed Interest Fund, Bond Fund, Gilt Fund, Secure Fund, Stable Fund and Growth
Fund. BSLI's liability is limited to the Fund Value available only
BSLI Funds- Asset Mix with the minimum
and maximum limits of each investment category.
The investment pattern is as under:
Min/Max Limit of Percentage of Assets
Fixed
Interest Fund
Bond Fund
Gilt Fund
Secure Fund
Stable Fund
Growth
Fund
Government and Government approved securities
20%-70%
Nil
50%-100%
30%-90%
30%-80%
15%-55%
Corporate Bonds rated AA or above by Crisil
30%-75%
80%-100%
Nil
0%-30%
0%-30%
10%-30%
Money market and other liquid assets
0%-20%
0%-20%
0%-20%
0%-20%
0%-20%
0%-20%
Infrastructure sector as defined by the IRDA
Nil
Nil
Nil
0%-25%
0%-25%
0%-25%
Listed Equities
Nil
Nil
Nil
10%-20%
20%-35%
35%-50%
The Asset Mix of the Money Market Fund is
as under:
Asset Class
Min/Max Limit of Percentage of Assets
Money market instruments including treasury bills, commercial paper,
certificates of deposit, short term deposits, government securities and cash
80%-100%
Fixed rate debt securities which at the time of purchase have residual or
average maturity of more than 365 days
0%-20%
* You can allocate a maximum of 20% of
funds in Money Market Fund.
The Asset Mix of the Floating Rate Fund is
as under:
Asset Class
Min/Max Limit of Percentage of Assets
Floating rate debt securities including fixed rate debt instruments swapped for
floating rate returns
50%-100%
Fixed rate debt securities
0%-30%
Money market and other liquid instruments including bank deposits and cash
0%-20%
The Asset Mix of the Protection Fund is as
under:
Asset Class
Min/Max Limit of Percentage of Assets
Government and Government approved securities
80%-100%
Corporate Bonds rated AA or above by Crisil
0%-20%
Money market and other liquid assets
0%-20%
Infrastructure sector as defined by the IRDA
0%-25%
Listed Equities
Nil
The objective and strategy of the various
funds is as given below:
Fixed Interest Fund Objective: The Investment Fund Option with full exposure in debt
market instrument, aims to achieve value creation at low risk over a long-term
horizon by investing in high quality fixed interest securities.
Strategy: Active fund management at a medium level of risk by
having entire exposure to government securities, corporate bonds maintaining
medium to long-term duration of the portfolio to achieve capital conservation.
Bond Fund Objective: The Investment Fund Option aims to achieve capital
preservation along with stable returns by investing in corporate bonds over
medium-term period.
Strategy: The fund follows a strategy to invest in high credit
rated corporate bonds, maintaining a short-term duration of the portfolio at a
medium level of risk to achieve capital conservation.
Gilt Fund Objective: The Investment Fund Option aims to deliver safe and
consistent returns over a long-term period by investing in Government
Securities for capital preservation of the policyholder.
Strategy: The Investment Fund Option strategy is to invest in
government securities, maintaining a medium to long-term duration of the
portfolio to achieve capital conservation.
Secure Fund Objective: This Investment Fund Option helps build your capital and
generate better returns at moderate level of risk, over a medium or long-term
period through a balance of investment in equity and debt.
Strategy: Generate better return with moderate level of risk
through active management of fixed income portfolio and focus on creating long
term equity portfolio which will enhance yield of composite portfolio with low
level of risk appetite.
Stable Fund Objective: This Investment Fund Option helps you grow your capital
through enhanced returns over a medium to long term period through investments
in equity and debt instruments, thereby providing a good balance between risk
and return. This fund is suitable for those who want to earn higher return on
investment through balanced exposure to equity and debt securities.
Strategy: To earn capital appreciation by maintaining
diversified equity portfolio and seek to earn regular return on fixed income
portfolio by active management resulting in wealth creation for policyholders.
Growth Fund Objective: The objective of the Investment Fund Option is to achieve
optimum balance between growth and stability to provide long-term capital
appreciation with balanced level of risk by investing in fixed income
securities and high quality equity security. This Investment Fund Option is for
those who are willing to take average to high level of risk to earn attractive
returns over a long period of time.
Strategy: The strategy is to invest in fixed income securities
& maintaining diversified equity portfolio along with active fund
management of policyholder's wealth in the long run.
Floating Rate fund
Objective: The primary objective of the Investment Fund Option is to provide
income consistent with prudent level of risk to achieve capital conservation
for the policyholder.
Strategy: The strategy of the Investment Fund Option is to build
a portfolio comprising substantially of floating rate debt instruments, fixed
rate debt instruments swapped for floating rate returns and also fixed rate
instruments and money market instruments.
Money Market Fund Objective: The primary objective of the Investment Fund Option is to
provide reasonable returns, at a high level of safety and liquidity for capital
conservation for the policyholder.
Strategy: The strategy of the Investment Fund Option is to make
judicious investments in high quality debt and money market instruments to
protect capital of the policyholder with very low level of risk.
Protection Fund Objective: The Investment Fund Option with full exposure to debt
market instruments, aims to achieve capital protection at medium level of risk.
Strategy: The strategy of the Investment Fund Option is to
have combination exposure with Government securities & corporate bonds,
maintaining low to medium term duration of the portfolio to achieve capital
conservation for the policyholder
Risk Profiles of Investment Options
Type of Asset
Risk Profile
Government & Government approved securities
Low
Corporate Bonds
Medium
Infrastructure sector as defined by IRDA
Medium
Money Market and other Liquid Assets
Very Low
Listed Equities
High
e)
Fund Management
One Group Account is maintained in the
system and Net Asset Value per unit of each Investment Fund will be calculated.
f)
Unit Allocation
Units in the BSLI Funds
will be allocated to the account of the Policyholder by dividing the
contribution allocated to the Investment Funds by the applicable NAV of that
Investment Fund calculated as mentioned below.
On issue of the policy, units will be allocated on the policy issue date. For
subsequent contributions received, the cut-off timings will be as follows:
Cash or local cheque received at any of our offices by duly authorised
officials before 4.15 p.m. on a working day will be allocated units based on
the NAV declared for that day.
Cash or local cheque received at any of our offices by duly authorised
officials after 4.15 p.m. on a working day will be allocated units based on NAV
declared for the next working day.
Outstation cheque received at any of our offices by duly authorized
officials will be allocated units based on the NAV on the working day we
receive credit in our bank account.
The above-mentioned timings are subject to change according to applicable
regulations.
g)
Calculation of NAV
The basis used for
calculation of NAV would be the Appropriation Price and Expropriation Price.The
Appropriation Price shall apply in a situation when the company is required to
purchase the assets to allocate the units at the valuation date.
The Expropriation Price shall apply in a situation when the
company is required to sell assets to redeem the units at the valuation date.
The NAV per unit of each Investment Fund will be calculated as
mentioned below. When Appropriation Price is applied: The NAV shall be computed
as under:
(Market Value of Investments held by the fund + Expenses incurred in Purchase
of the Assets + Value of any Current Assets + any Accrued Income net of Fund
Management Charges - Value of any Current Liabilities - provisions, if any)
Divided by the number of units existing at valuation date
(before any new units are allocated)
When Expropriation Price is applied: The NAV shall be computed
as under:
(Market Value of Investments held by the fund - Expenses incurred in Sale of
the Assets + Value of any Current Assets + any Accrued Income net of Fund
Management Charges - Value of any Current Liabilities - provisions, if any)
Divided by the number of units existing at valuation date (before any new units
are allocated)
h)
Fund Management Charge
Birla Sun Life Insurance shall charge a
Fund Management Charge, which will vary, based on the Investment Fund. This
charge may increase upto 1.7% of the funds p.a.. These charges will be
recovered by way of adjustment of NAVs.
i)
Switching Charge
Every year, four free switches between the
nine investment funds are allowed. A switching charge of Rs 100 will be levied
from the fifth switch onwards. This charge may increase up to Rs 1000 with
approval from the IRDA.
j)
Surrender Charges
The Surrender Charge is
levied as a percentage of contribution received in the first policy year.
In case of termination of policy by the policyholder, the Surrender Charges
will be deducted from the Fund Value as per the following table.
Initial Allocation
Policy Year
0%
1%
2%
3%
4%
5%
1
0.50%
1.50%
2.50%
3.50%
4.50%
5.50%
2
0.25%
1.05%
1.85%
2.65%
3.45%
4.25%
3
0.00%
0.60%
1.20%
1.80%
2.40%
3.00%
4
0.00%
0.40%
0.80%
1.20%
1.60%
2.00%
5
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
Thereafter
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
k)
Termination of the scheme
The scheme can be
terminated in the manner set out below:
By the Policyholder by providing written notice to BSLI
stating its intent to terminate this policy in which case this policy will
terminate on the later of the date specified in the notice or 30 days from the
date on which BSLI receives the notice.
By BSLI on any date after giving 30 days' written notice to
the Policyholder or on any date if required by legislation.
Automatic Termination: The policy will automatically terminate
180 days after the balance in the Fund Value attains a Surrender Value of Rs
50,000 or at the end of the five year period as mentioned in the Premium
Discontinuance provision if the policyholder continues non-payment of premium.
l)
Closure of funds
BSLI may close any BSLI Fund available
under the Policy at any time, subject to the consent of the Policyholder and
with prior approval of IRDA
m)
Premium Discontinuance
Non-receipt of due premium
for Life Insurance Coverage within 30 days from the premium due date:
To continue the policy as it is, the Policyholder must pay,
within the grace period of 30 days, an amount equal to all premiums towards
Life Insurance Coverage due but unpaid. At the end of the grace period if the
premium is not received, the policyholder will be given a period of five policy
years to pay any due and unpaid premiums. During these five policy years, all
coverages will continue to be in force and the premiums will be deducted from
the Fund Value by cancellation of units at the applicable NAV till the Fund
Value attains a Surrender Value of Rs. 50,000/. When the Fund Value attains a
Surrender Value of Rs. 50,000/-, the policy will be terminated and the
Surrender Value will be paid out.
At the end of the five year period we will give the policyholder
an option to continue the policy and start paying due premiums by the scheduled
premium due dates. If the policyholder does not opt to continue the policy, the
policy will be terminated and the Surrender Value paid out.
In case the policyholder opts to continue the policy, he has to
pay the next due premium by the premium due date.
n)
Free Look Period
You have a period of 15
days from the date of receipt of the policy document to review the terms and
conditions of the policy and if you disagree to any of these terms or
conditions, you have the option to return the policy and the premiums and
market value of invested contributions will be refunded after proportionate
deductions for Life Insurance Coverage during the period.
Terms Defined
Group denotes
the group of employees covered under the plan.
Group Fund means the total accumulated assets under fund
management.
Fund Value means and includes the number of
units in the various chosen funds at any given time purchased with the
contributions made by the Policyholder.
Beneficiary is the person nominated by the
Member to receive benefits in the event of death of the Member
Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, one of the largest business houses in India and Sun Life Financial Inc., a leading international financial services organisation. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable protection for your future.
The Aditya Birla Group has a turnover of close to Rs. 119000 crores, with a market capitalisation of Rs. 133875 crores (as on 31st March 2008). It has over 100,000 employees across all its units worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of its key companies are Hindalco, Grasim and Aditya Birla Nuvo.
Sun Life Financial Inc. and its partners, have operations in key markets worldwide. These include Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. Sun Life Financial Inc. has assets under management of over US$404.7 billion (as on 31st March, 2008). It is a leading performer in the life insurance market in Canada.
Birla Sun Life Insurance (BSLI) has been operating for 7 years. It has contributed significantly to the growth and development of the life insurance industry in India. It pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. It was the first player in the industry to sell its policies through the Bancassurance route and through the Internet. It was the first private sector player to introduce a Pure Term plan in the Indian market. BSLI has covered more than 2 million lives since it commenced operations. And its customer base is is spread across more than 1500 towns and cities in India. The company has a capital base of Rs. 1274.5 crores as on 31st March 2008.
Insurance Industry in India
The deregulation of the
insurance industry in India commenced in the middle of year 2000. This was
several years after the Malhotra Committee presented its recommendations for
the industry. This led to a gradual transformation from a public sector
industry to one with several private sector companies. The sector was opened up
with the objective of expanding the market and bringing in greater efficiency.
It is a very well regulated industry with the 'Insurance
Regulatory and Development Authority' (IRDA) functioning as the regulatory body
governed by IRDA Act, 1999. To protect consumers, IRDA has laid down
regulations, which include among others, a minimum capital share requirement of
Rs.100 crore for each new life insurance company. IRDA has stringent rules and
regulations for the functioning of insurance companies. It also has
requirements on solvency margins to be maintained by insurance companies to
meet their liabilities. Birla Sun Life Insurance functions in accordance with
these regulations.
Section 41 of the Insurance Act
No person shall allow or
offer to allow, either directly or indirectly, as an inducement to any person
to take 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.
Section 45 of the Insurance Act
No policy of Life
Insurance effected before the commencement of this Act shall after the expiry
of two years from the date of commencement of this Act and no policy of Life
Insurance effected after the coming into force of this Act shall, after the
expiry of two years from the date on which it was effected be called in
question by an Insurer on the ground that statement made in the proposal or in
any report of a medical officer, or referee, or friend of the Life Insured, or
in any other document leading to the issue of the policy, was inaccurate or
false, unless the Insurer shows that such statement was on a material matter or
suppressed facts which it was material to disclose and that it was fraudulently
made by the Life Insured and that the Life Insured knew at the time of making
it that the statement was false or that it suppressed facts which it was
material to disclose.
Provided that nothing in this section shall prevent the Insurer from calling
for proof of age at any time if he is entitled to do so, and no policy shall be
deemed to be called in question merely because the terms of the policy are
adjusted on subsequent proof that the age of the Life Insured was incorrectly
stated in the application.
Risk Factors/Disclaimers
This policy is underwritten by Birla Sun Life
Insurance Company Limited (BSLI).
Birla Sun Life Insurance, Group Gratuity, Fixed
Interest, Bond, Gilt, Secure, Stable, Growth, Floating Rate, Money Market and
Protection are only the names of the Company, Policy and the Investment Funds
respectively and do not in any way indicate the quality of the Policy,
Investment Funds or their future prospects or returns.
The charges mentioned above are
applicable all the Investment Fund Options offered at present. All the policy
charges can be modified by the company subject to approval of the IRDA.
The company reserves the right to introduce new
Investment Funds with different charges subject to approval of the IRDA.
The value of the Investment Fund reflects the
value of the underlying investment. These investments are subject to market
risks and change in fundamentals such as tax rates etc affecting the investment
portfolio.
The premium paid in Unit Linked Life Insurance
policies are subject to investment risk associated with capital markets and the
NAV of the units may go up or down based on the performance of fund and factors
influencing the capital market and the Insured is responsible for his/her
decisions. There is no guarantee or assurance of returns above the guaranteed
returns from the funds.
BSLI reserves the right to recover any statutory
levies such as the Service Tax levied by the authorities on insurance
transactions.
This brochure contains the salient features of the
plan. For further details please refer to the policy contract.
Insurance is the subject matter of solicitation.
For more details and clarifications call your BSLI
Insurance Advisor or visit our website and see how we can help in making your
dreams come true.
Mandatories :
This product is underwritten by Birla Sun Life Insurance Company Limited.
This brochure lists out the salient features of the plan. Please refer the
policy documents for more details.
Insurance is the subject matter of solicitation.
Call Toll Free:
1-800-22-7000 or 1-800-270-7000 or Call: 6691 7777
www.birlasunlife.com
Birla Sun Life Insurance Company Limited, 6th Floor Vaman Centre,
Makhwana Road, off Andheri Kurla Road, Andheri (E), Mumbai 400 059 .
Reg. No. - 109, Form no. - Grp - 01
Insurance is the subject
matter of solicitation. Birla Sun Life Insurance. Registration no. 109
Birla Sun Life Insurance Company Limited, 6th Floor, Vaman Centre,
Makhwana Road, Off Andheri-Kurla Road,
Andheri (East), Mumbai 400059
