The driving force behind
an organisation is its people. And the driving force behind the people can be
the promise of a secure future and a comfortable retired life. A promise that
can be made by the employer through an appropriate retirement solution. In
short, a retired life the employee can look forward to.
As a thoughtful employer, it's imperative on your part to chalk
out a comfortable retirement plan for your employees. A gesture that will go a
long way in not only establishing your image as the most preferred employer but
also serving as a motivational and retention tool for your employees. That's
precisely where the Birla Sun Life Insurance Group Superannuation Plan comes in, a
retirement plan designed to give your employees a happy and tension-free life.
Birla Sun Life Insurance Group Superannuation Plan - Retiring in
comfort
Under this plan you can
make a contribution for each member, so as to build a retirement corpus, which
can provide him/her financial security at retirement. You can take this plan
for all your employees or a group of specified employees. Your contribution can
be built-in in the employees' remuneration package and considered as a part of
Cost to the Company (CTC) Thus this plan fulfills employee welfare, financial
planning as well as tax planning needs. All in all, a plan that can be
customized to the unique requirements of your organisation.
Unique Features
Unit-Linked Plans, a retirement boon
As pioneers in Unit
Linked Solutions, Birla Sun Life Insurance brings you this plan that combines
safety and growth. This is how it works. The member-wise contribution is
invested in one or more of the unitized funds. You have the freedom to choose
from one or more of the six investment funds, depending on their investment
outlook. This creates an opportunity to get market linked returns and growth in
the investment in the long run.
Choose your fund. Choose your future
The Unit-Linked platform
offers the benefit of six 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 six funds.
You can also use a combination of the six funds or select a few that
best meets your investment outlook and needs.
If you wish to diversify your risk, you can choose
to allocate your premium in varying proportion amongst the available Investment
Funds and create your own fund. You can switch * between the Investment Fund
options and change the allocation into the various funds @ anytime during the
policy tenure. In a year two switches will be free.
Investment safety first
Retirement investments are
sacred investments. And their safety is our primary concern. Hence the
original/principal contribution is guaranteed against any market fluctuation at
the exit of any member. Exit can be either through retirement, resignation or
death.
Freedom to Switch Funds
To help you to manage
risks and optimize the returns based on market performance, the policyholder
has the option of changing the allocation in various funds after completion of
the first policy year. This further helps to earn better returns and make your
money work harder. We provide two free switches in a year where you can change
the Investment Fund options. Additional number of switches is possible at a
nominal Switching Charge of Rs.100. This charge shall not exceed Rs.1000.
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.
Track the retirement fund
To enable your employees
to track the status of their Investment Fund, an annual statement is sent to
each member. Alternatively, they can update themselves easily by logging on to
www.birlasunlife.com with the unique customer ID and password provided.
Flexibility to choose the annuity
provider
On retirement or
resignation, the employee can buy an annuity from any annuity provider
including Birla Sun Life Insurance. This provides maximum flexibility and
freedom to your employees.
Funds at retirement
On Vesting date
(retirement or resignation or death), benefits of the retirement fund are
payable as per the rules of the trust fund. The total units in the funds are
payable at the applicable NAV. The employee has the option of withdrawing
(commuting) 33.33% of the fund. Balance to be invested to buy an annuity from
an annuity provider.
Free Administration services
Should you want to start a
new fund, we will assist you in the formation of the Trust and documentation
like Trust Deed, etc.
Additionally, any existing approved Superannuation Fund can be taken over by
us. We also offer assistance in documentations like Deed of Variation etc.
Services Offered
Any time switch option available.
2 free switches in a year
CIP/TPINS issued to individual members so as to
enable employees to check the status of their funds, monitor their fund
performance etc. The member has an option of placing a request for switch in
funds. He can also provide his valuable feedback/suggestions etc that gets
redirected to our dedicated e-mail ID
grouphelpline@birlasunlife.com.
Individual Policy Account Statement issued at the
end of every policy year
Cost & Benefit particulars issued for each
contribution received, giving member-wise details (viz Fund Option, NAV
applicable, Units allocated etc)
Tax Benefits
The contributions to an
approved Superannuation Fund are allowable as business deduction under section
36(1)(iv) of the Income Tax Act 1961. The contribution should not exceed 27% of
the basic salary less the amount contributed by the employer towards a
Recognized Provident Fund. Additionally any contributions to the Superannuation
Fund in excess of Rs. 1 lakh per employee will be subject to Fringe Benefit Tax
(FBT).
The benefits received by the employee from a Superannuation
Fund is exempt from tax under section 10(13) of the Income Tax Act in the
following cases:
. Death of the beneficiary
. Commuted value on retirement
. Refund of contributions in case of death.
Deduction will be allowed under section 80C of the Income Tax Act for a
contribution by an employee to an approved Superannuation Fund subject to the
limits specified under section 80CCE of the Income Tax Act.
Investment Fund
Contributions made on
behalf of each Member will be invested in one or more of the BSLI Funds
currently offered: Fixed Interest Fund, Bond Fund, Gilt Fund, Secure Fund,
Stable Fund and Growth Fund.
Asset Mix with the minimum and maximum
limits of each investment category.
Asset Class
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 objective and strategy of the various
Investment 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 into high quality fixed interest securities.
Strategy: Active Investment 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 Investment 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 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 Investment 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 into fixed income securities
& maintaining diversified equity portfolio along with active fund
management policyholder's wealth in long run.
The Risk Profiles of the different asset
classes is as under:-
Type of Asset
Risk Profile
Govt & Govt approved securities
Low
Corporate Bonds
Medium
Infrastructure sector as defined by IRDA
Medium
Money Market and Other Liquid Assets
Very Low
Listed Equities
High
Ready Reference
a)
Eligibility All employees (members) above the age of 18 are eligible for this
plan. Existing fund approved by the Income Tax Commissioner should be
administered through Trustees under a Trust.
b) Contributions Employer normally provides the contribution. This can be built into
the remuneration package of the employee. Even an employee can contribute
additional amount towards the fund. Contributions can be made annually,
semi-annually, quarterly or monthly or in single lump sum and there is no
minimum requirement. The minimum policy term is 5 years.
c) Past Service Contributions At the option of the Trustees/Employer, past service contributions can
be made in respect of the members to be covered under the plan . This past
service contribution can be paid in installments.
d) Choose your investment option The contribution will be credited to each members account . The
policyholder has the freedom to select from one or more of the 6 Investment
Fund options. Alternatively, Employer/Trustee can also make the investment
choice on behalf of all the members.
e) Fund Management Member wise contribution will be administered on a unitized basis. In
case of contribution both from employer and member, contribution accumulation
is maintained separately in the system. NAVs are calculated on every business
day. The Net Asset Value per unit of each Investment Fund will be calculated as
per the prevailing IRDA guidelines.
f) Unit Allocation Units in the BSLI Funds will be allocated to the account of the
Policyholder by dividing the Contribution allocated to the particular BSLI
Funds by the applicable NAV of that BSLI Fund calculated as mentioned below.On
issue of the Policy, Units will be allocated on the Policy Issue Date. For
subsequent contributions received:
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:
(Market Value of Investments held by the fund + The 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:
(Market Value of Investments held by the fund - The 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)
The valuation of scheme's investments will be in accordance with the provisions
of IRDA Regulations/Insurance Act, 1938 as amended from time to time.
h)Fund Management Charge
Birla Sun Life Insurance shall charge Fund Management Charge upto 1.50% per
annum of fund for all funds with the approval from the IRDA. The Fund
Management Charge will be recovered by BSLI through adjustment of NAV
i)Surrender Charges In case of termination of policy by the policyholder, Fund Value less
Surrender Charges as per the following table will be paid.
The Surrender Charge is levied as a percentage of Contribution received in the
first policy year.
Upon termination by the
Policyholder in the:
Surrender Charge (as a Percentage
of contribution received in the first policy year)
First Policy Year
0.5
Second Policy Year
0.25
Third Policy Year
Nil
j)Switching Charge Every year, two free switches between any of the six investment funds
are allowed. A switching charge of Rs 100 is levied from the third switch
onwards. This charge may be increased up to Rs 1000 with the approval from the
IRDA.
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 is zero.
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 the prior approval of IRDA.
m) 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 market value of invested contributions will be refunded.
Terms Defined
Member is
an employee and part of the Group
Group denotes total members covered by the policy.
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.
Annuity means a life insurance contract providing for periodic
payments of a fixed or variable amount for the life of the insured, issued by a
licensed insurer in accordance with applicable legislation.
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
regulation 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.
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 Superannuation, Fixed Interest, Bond, Guilt, Secure, Stable, Growth 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 to all the 6 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 effecting 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 levies such as the Service Tax levied by the authorities on
insurance transactions. If there be any additional levies, they too will be
recovered from you.
This brochure contains
the salient features of the plan. For further details please refer to the
policy contract.
Insurance is the subject
matter of the solicitation.
For more details and
clarification call your BSLI Insurance Advisor or visit our website and see how
we can help in making your dreams come true
Call Toll Free: 1-800-22-7000 or
1-800-270-7000 or Call: 6691 7777
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
