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GROUP SAVINGS LINKED INSURANCE SCHEME

GROUP SAVINGS LINKED INSURANCE SCHEME. A COMPOSITE PLAN TO PROVIDE INSURANCE PROTECTION AT LOW COST AND TO GIVE ATTRACTIVE RETURNS ON SAVINGS OFFERED ONLY TO SELECTED EMPLOYER-EMPLOYEE GROUPS SUCH AS PUBLIC SECTOR CORPORATIONS AND REPUTED PUBLIC AND PRIVATE LTD. COMPANIES.

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GROUP SAVINGS LINKED INSURANCE SCHEME

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  1. GROUP SAVINGS LINKED INSURANCE SCHEME • A COMPOSITE PLAN TO PROVIDE INSURANCE PROTECTION AT LOW COST AND TO GIVE ATTRACTIVE RETURNS ON SAVINGS • OFFERED ONLY TO SELECTED EMPLOYER-EMPLOYEE GROUPS SUCH AS PUBLIC SECTOR CORPORATIONS AND REPUTED PUBLIC AND PRIVATE LTD. COMPANIES

  2. G S L I SCHEME PREMIUM • PREMIUM IS GENERALLY PAID BY EMPLOYEES • PREMIUM HAS TWO COMPONENTS - RISK AND SAVINGS • RISK PART OF PREMIUM IS UTILISED FOR INSURANCE COVER AND BALANCE I.E. SAVINGS IS ACCUMULATED AT A RATE OF INTEREST (PRESENTLY 10% P.A. COMPOUNDING YEARLY)

  3. G S L I SCHEME INSURANCE COVER • EITHER GRADED OR UNIFORM • COVER WILL DEPEND ON SIZE OF GROUP • FOR GRADED COVER EMPLOYEES MAY BE DIVIDED INTO CATEGORIES (MAXIMUM 4) • CATEGORISATION WILL BE ON THE BASIS OF DESIGNATION OF EMPLOYEES / OFFICERS

  4. G S L I SCHEME BENEFITS ON DEATH: • AMOUNT OF INSURANCE COVER, PLUS • ACCUMULATED SAVINGS PREMIUM WITH INTEREST ON RETIREMENT OR LEAVING : • ACCUMULATED SAVINGS PREMIUM WITH INTEREST

  5. G S L I SCHEME For Installation of Scheme, Employees have to .. • GIVE CONSENT FOR JOINING THE SCHEME • GIVE AUTHORITY FOR PREMIUM DEDUCTION TO THE EMPLOYER • NOMINATE A PERSON TO RECEIVE DEATH BENEFIT Note: The Scheme can be installed if 75% or more of existing employees agree to join the Scheme

  6. G S L I SCHEME ELIGIBILITY / INSURABILITY CONDITIONS • EMPLOYEES SHOULD NOT BE ABSENT FROM DUTY ON GROUNDS OF SICKNESS AT ENTRY • NEW EMPLOYEES TO PARTICIPATE COMPULSORILY • EXISTING EMPLOYEES WHO DON’T OPT TO JOIN AT COMMENCEMENT MAY NOT BE ALLOWED TO JOIN IN FUTURE

  7. G S L I SCHEME ADMINISTRATION OF SCHEME • THROUGH EMPLOYER • EMPLOYER DEDUCTS PREMIUM FROM EMPLOYEES’ SALARY AND REMITS TO LIC AFTER RECONCILIATION • EMPLOYER TO ADVANCE CONTRIBUTION WHERE AN EMPLOYEE NOT EARNS SALARY DURING A MONTH WHICH MAY BE TAKEN FROM HIS SUBSEQUENT DUES

  8. G S L I SCHEME TAX BENEFITS TAX REBATE UNDER SECTION 88 ON EMPLOYEES’ CONTRIBUTION

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