a)
Eligibility
All employees (members) above the age of 18 are eligible for this plan and there is no maximum age limit. 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 seven 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 (BSLI) shall charge a fund management charge up to 1.50% per annum of fund for all funds with 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 the contribution received in the first policy year) |
First Policy Year |
0.50% |
Second Policy Year |
0.25% |
Thereafter |
Nil |
j) Switching Charge
Every year, two free switches between any of the seven 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 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. |
