PRITAM -GROUP INS.AND INDUSTRIAL ASSURANCE PLAN

8/14/2019 PRITAM -GROUP INS.AND INDUSTRIAL ASSURANCE PLAN

1/31

DEPT:-PPI B.COM (HONS.)-VOC. SEM-III

SUBMITTED IN PARTIAL FULLFILMENT FOR THE

AWARD OF DEGREE IN B.COM (HONS.)-VOC. IN

PPI.

BY:-

NAME:-PRITAM KUMAR

ROLL NO.:-1128

ST. XAVIER COLLEGE
http://images.google.com/imgres?imgurl=http://s3.amazonaws.com/minglebox-profile/core-0000-c8a0428b10f8af22011101657cce71d3.s_logo.jpg&imgrefurl=http://www.minglebox.com/STXC&usg=__xzNjDN1AlA5c43D59p7G8hk6ZAg=&h=100&w=72&sz=5&hl=en&start=25&sig2=05cR50_NASw3tFTqjDBUhA&tbnid=j_eTmtx0Kc3o1M:&tbnh=82&tbnw=59&ei=miT0SvqgN5K2tAOFh5UG&prev=/images?q=LOGO+OF+ST.+XAVIER+COLLEGE+RANCHI&gbv=1&hl=en&sa=N&start=20http://images.google.com/imgres?imgurl=http://www.monadance.org/yahoo_site_admin/assets/images/LIC_LOGO.57125039.jpg&imgrefurl=http://www.monadance.org/news&usg=__nOW8m1_n9_Dsfhgb8TfjN7tak1s=&h=577&w=997&sz=622&hl=en&start=5&sig2=RKvMaHIdiwTKyzLeUKuSbQ&tbnid=GqGH9BGOkMgdEM:&tbnh=86&tbnw=149&ei=iiL0SqmEEJPcswPm7swH&prev=/images?q=LOGO+OF+LIC&gbv=1&hl=en&sa=G


2/31

AN AUTONOMOUS COLLEGE OF RU, RANCHI

GUIDE CERTIFICATE

TO WHOM SO EVER IT MAYCONCERN

GROUP INSURANCE & INDUSTRIAL LIFE

INSURANCE OF LIC ANB SBI LIFE

INSURANCE has been completed by

PRITAM KUMAR Roll No.-1128;B.Com(Hons.) Vocational in PPI-III under my

supervision.

Mr.

Sidharth Haldhar


3/31

(FACULTY

& PROJECT GUIDE)

I PRITAM KUMAR STUDENT OF ST. XAVIER

COLLEGE,RANCHI OF SEM-III OF INSURANCE

HONS.,ROLL NO:-1128 GOT A CHANCE TO DO APROJECT REPORT ON GROUP INSURANCE AND

INDUSTRIAL LIFE INSURANCE OF LIC AND SBI

LIFE INSURANCE.FIRST OF ALL I WOULD LIKE TO

THANKS OUR FACULTY MEMBERS Dr. GAUTAM

RUDRA(HOD),DEPT. PPI & MR. SIDDARTH

HALDHAR(FACULTY & PROJECT GUIDE) AND MR.A.K. SINGH(BRANCH MANAGER OF LIC) 7 MY

FAMILY MEMBERS WHO HAD HELPED ME IN ALL

THE POSSIBLE WAYS & MY FAMILY MEMBERS WHO

HAD HELPED ME IN ALL THE POSSIBLE WAYS &


4/31

WITHOUT THEIR THIS PROJECT WORK WOULD NOT

HAVE SUCCESSFUL & I WOULD LIKE TO THANKS

ALMIGHTY GOD WHO HAD PROVIDED ME WITH

HEALTHY MIND & BODY.

CONTENTPAGE NO???????????

OBJECTIVE OF THE PROJECT.

RESEARCH METHODOLOGY.

COMPANY ORGANISATION PROFILE.

INTRODUCTION TO GROUP INSURANCEAND INDUSTRIAL LIFE ASSURANCE.

AN INTRODUCTION LIC AND SBI LIFE

PRODUCTS.

COMARISION BETWEEN GROUP

INSURANCE AND INDUSTRIAL

INSURANCE CONCLUSION.

BIBLIOGRAPHY.


5/31

OBJECTIVE OF THE PRODUCTS

TO KNOW DETAIL ABOUT GROUP INSURANCE PLAN AND INDUSTRIAL

PLAN

TO KNOW WHO GROUP INS. PLAN AND INDUSTRIAL PLANS ARE

OFFERED.

TO KNOW ABOUT THE BENEFITS GIVEN UNDER THE GROUP INS. AND

INDUSTRIAL INS. PLAN


6/31

TO COMPARATIVE ANALYSIS OF GROUP INS. AND INDUSTRIAL

INSURANCE PLAN.

RESEARCH METHODOLOGY

DATA COLLECTION

Primary Data: The primary data has been

collected through interview, , and personal visit

to the branch.

Secondary Data :The has been collected through,

the company website, and book Issued by the

IRDA.


7/31

ABOUT LIFE INSURANCE CORPORATION OF INDIA

Life insurance Corporation of India founded in 1956 is the largest life insurance company in

India owned solely by the Government of India. Headquartered in Mumbai, which is considered

the financial capital of India, LIC presently has 7 Zonal Offices and 100 Divisional Offices

situated all around the country. In addition to an even distribution of 2048 branches

located in different towns and cities of India. The Life Insurance Companies Act

and Provident Fund Act both passed in 1912 provided regulatory mechanisms to

the Life Insurance Industry in India for the first time. After undergoing severalother such reforms in the following decades and nearly a decade after India

achieved independence, the Parliament of India passed the Life Insurance of

India Act on 19 the June, 1956 following which the Life Insurance Corporation (LIC)

of India on 1 sty September of the same year. The Company began its operations

with 5 Zonal Offices, 33 Divisional Offices and 212 Branch Offices. Existing as

a towering insurance company for over 50 years, LIC has acquired almost

monopoly power in the solicitation and sale of life insurance policies in India. In

addition to the summary regarding the present stature provided at the beginning,

LIC has extended its activities in 12 countries other than India with the objective of

catering to the insurance needs of Non Resident Indians. The enforcement of New

Economic Reforms in 1991 coupled with the formation ofInsurance Regulatory

and Development Authority Act (IRDA) of 2000 (which started issuing licenses

to private life insurers) has diluted the monopolistic attitude commanded by LIC.

The only insurance company belonging to the public sector now has to compete

with several other corporate entities of its kind which often are heavyweight Indian

as well as Multinational Life Insurance Brands in themselves.


8/31

ABOUT SBI LIFE INSURANCE

SBI Life Insurance Company Limited is a joint venture between the State Bank of India and

BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs 2000

cores and a Paid-up capital of Rs 1000 Cores. SBI owns 74% of the total capital and BNP

Paribas Assurance the remaining 26%.

State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate

Banks, SBI Group has the unrivalled strength of over 14,500 branches across the country,

arguably the largest in the world.

BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas - Euro

Zones leading Bank. BNP Paribas, part of the worlds top 6 group of banks by market value and

a European leader in global banking and financial services, is one of the oldest foreign banks

with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life

insurance company in France, and a worldwide leader in Creditor insurance products offering

protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly

through the banc assurance and partnership model.

SBI Life has a unique multi-distribution model encompassing Banc assurance, Agency and

Group Corporate.

SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance productsalong with its numerous banking product packages such as housing loans and personal loans.

SBIs access to over 100 million accounts across the country provides a vibrant base for

insurance penetration across every region and economic strata in the country ensuring true

financial inclusion.


9/31

WHAT IS GROUP INSURANCE?

Group insurance implies granting of insurance over to a homogenous group of individuals under

a single policy called a "master policy " the party with whom the insurer enter into a contract

may be a employer or labor union or voluntary association , not formed mainly for the purpose of

obtaining insurance protection

The term on which the insurance protection is granted depend upon the appraisal of risk in

respect off the group as whole and not individual risk .the contractual relationship of the insurer

is with the group policy holder .the individual member of the group has no direct contractual

relationship with the insurer ,.the master policy the benefits and term and condition under which

the specified policy are payable to the individual member through the group policy holder under

the agreed contingencies.

The profits under this Group Life Insurance normally depend on the lost wages of theemployees. As there are lots of subscribers or contributors in this Group Life Insurance thisprovide service coverage at a very less cost for each participant.

FEATURES

1. Master policy is issued in corpora ting the contract between the insurance company and a

legal entity like employer, trustees, trade union etc., defining the group of life to covered,

benefit, contribution and terms and condition on which contract is entered into.

2. The amount of covered is determined on the basis of a fixed formula and its is not

decided by the individual forming the group depending upon the number the member

and the average sum assured, a free cover or no evidence limit is determined and theinsurance on the life of the member up to their limit is granted on the basis of the basis of

simple rules of insurability like actively- at- work i.e., reporting for duty on the date of

reporting of insurance and sick leave record verification.


10/31

3. The group should be such that their is steady stream of new entrants from year to year so

that group continuing nature and not likely to lapse as a result of depletion of members.

4. Mass administration and simple underwriting practices result in low cost insurance for

the group.

5. The premium rates for a group scheme are adjusting periodically on the basis of

experiences this feature is known as experience rating for medium and big size group,

sharing of profit on the basis actual experience is a nominal feature.

6. Group insurance schemes are in nature of social security the state recognize this factor by

granting of tax advantages to the contracting parties.

E LIGIBLITY CRITRIA:

Group should have been formed and maintained for purposes other than obtaining

insurance cover.

There should be steady stream of new entrants into the group. The membership of

the group should normally be between age of 18 and 60 years

The group should have minimum 25 members.

The individual of the group should be the member of a registered companyformed for the purpose other than taking insurance cover.

ADVANTAGES TO THE EMPLOYER:

1. The premium payable by the employer is usually less than the total contribution being

paid by the employer; particularly when the salary level is high and average age of the

group is low.

2. Settlement of claim is quicker; LIC requires only the death certificate and the ClaimForm from the employer.

3. Premium paid by the employer is treated as normal business expenses for Income-Tax

purpose.


11/31

ADVANTAGES TO THE EMPLOYEE:

Each employee is covered for a sum assured ranging between 5,000 to 2, 00,000 depending upon

the current salary and service put in from day one irrespective of the actual balance in theProvident Fund. Alternatively every employee/ worker can be covered for a uniform sum assured

which will be decided depending upon the group size.

ACCIDENT BENEFIT:

Double accident benefit can be allowed to the extent of the Sum Assured for an extra Premium

maintains a reasonable standard of living after retirement. Pension may be paid for life or for a

guaranteed period and thereafter for life or for life with return of corpus. Pension can be arrange

to be paid during the joint life the employees and his wife and to the survivor after the death of

one of them.

Types of group insurance schemes:

1. Group Term Insurance Schemes :

Group Term Insurance Schemes are launched to give life insurance protection to a group of

people. The administration is also done under group basis and thus results in low cost. The life

insurance cover is also provided to all the group members with certain simple insurability

conditions. But there are no specific conditions on the medical evidence

The insurance cover is provided only on death and do not provide any maturity value at the end

of the term under these Group Term Insurance Schemes. Currently the plan is offered only less

than One Year Renewable Group term assurance plan. Thus, premium is charged each year

on the date of the Annual Renewal and this charge depends on the change in the size and the

distribution of the age in the age group

There are also many add-ons such as the double accident advantage, the Critical illness

advantage, and the Disability advantage. The basic eligibility condition under this Group Term

Insurance Schemes is the person should be a member under the Provident Fund Scheme for the

employer.


12/31

Under this scheme, the premium amount can be paid by the employer as a whole or else by

means of the Nodal Agency. Also, this scheme allows for the contributory that means, the

member can also contribute to pay the premium amount.

2. Group Gratuity Scheme:

Group Gratuity Scheme which is also called as Cash Accumulation Scheme is a plan which

is launched under the Payment of Gratuity Act to provide a convenient mode to fund the

statutory obligation of an employer. It helps the employer to carry their obligation to a

higher level.

According to The Payment of Gratuity Act, 1972, the employer has to pay about 15 days

salary which is equivalent to 15/26 of a month's wages, to its each and every employee for

every successful year's service, if they exit after their continuous five years of service on any

reason, with the maximum limit of up to 3.5 lacks.

If the employer desires, even higher benefits can also be provided. When liability arises, as

per the LIC Group Gratuity Scheme gratuity can be paid to the employees, which could be

claimed under the P & L account as the deductible expense.

3. Group Super Annuation Scheme:

Group Super Annotation Scheme is a plan launched according to which, certain fixedpercentage of salary of each of the member is contributed by the employer. Insurancecompany collects these contributions and thus uses the accumulated amount in order to

provide different benefits.

Benefits available under this Group Super Annuation Scheme :When any of the members retires, then pension is provided to those members by means of using

the corpus which is called contributions added with the interest. In the event of death, the

pension is payable on the life of the beneficiary. Based on the type of the pension payment

scheme chosen by the beneficiary, the Corpus is used for the payment of pension. This benefit

thus obtained is free fromtax. Apart from the pension provided, a lump sum amount is payableon the event of death provided the employer taken a group insurance scheme along with this LIC

Group Super Annuation Scheme.


13/31

In case of withdrawing from the scheme, the member is eligible to get an equitable interest

which is transferred to new employer of the superannuation scheme. Or else an immediate or

deferred position can also be chosen.

What are the pension options that are provided along with this scheme?

The pension options that are provided under this Group Super Annotation Scheme are as follows.

Provides a life pension that stop at the event of death and along with a return of capital and group

pension terminal bonus on the occurrence of death. This life pension thus provided is guaranteed

for about 5 or 10 or 15 or 20 years and there after for the entire life.

WHAT IS INDUSTRIAL LIFE INSURANCE ?

Industrial life insurance originated in united kingdom in 19th century is attempt to provides

insurance cover to industrial worker and there families thus even to day policies are of very small

amount the specialty is the arrangement for collection for premium which are collected by agents

on monthly or weekly basis insurance is sold in premium units rather than in sum assured units

the insurance is generally offered to all the member of family from birth to age 65-70yrs.generlly

the business under the non medical basis.


14/31

FEATURES :

1. This policy is specially made to provide insurance cover to daily wages

workers and their families members to protect them from any uncertainties

which may take place in future.

2. The premium rate is very low as a result maturity benefits is also low i.e.,

between Rs 50,000-1, 00,000 because earning capacity is very low.

3. The specialty of this policy is the company agent collects the premium

monthly or weekly basis on the behalf of insurer.

4. The insurance is generally provided to the entire family member from birth to

age 65-70 and the policy is provided under non-medical basis.

5. Industrial life insurance generally are of two types:

1. Whole life policy or

2. Ordinary endowment plans.

ABOUT LIC PRODUCT

JEEVAN MANGAL PLAN

(MICRO INSURANCE PRODUCT)

1. Introduction:

LICs Jeevan Mangal is a term assurance plan with return of premiums on maturity,

where you may pay the premiums either in lump sum or regularly at Yearly, Half Yearly,

Quarterly, Monthly, fortnightly or weekly intervals over the term of the policy.

2. Eligibility Conditions and Other Restrictions:


15/31

Minimum age at entry: 18 years (completed)

Maximum age at entry: 60 years (nearest birthday)

Maximum age at maturity: 70 years (nearest birthday)

Term: 10 to 15 years for regular premium.

10 years for single premium.

Minimum Instalment Premium: Rs 15/-

Minimum Sum Assured: Rs. 10,000/-

Maximum Sum Assured: Rs. 50,000/-

(Sum Assured shall be in multiples of Rs. 1,000/-)

3. Mode of Premium Payment :

The modes of premium payment allowable are Yearly, Half Yearly, Quarterly, Monthlyincluding SSS, fortnightly, weekly and Single Premium. (Single premium is allowed for 10 year

term only.)

4. Benefits:

a. Death Benefit: On death during the term of the policy the Sum Assured under the basic plan is

payable, provided the policy is kept in force.

b. Maturity Benefit: On surviving to the date of maturity, an amount equal to the total amount of

premium paid during the term of the contract excluding the accident benefit premium and allextra premium, if any, is payable ,provided the policy is kept in force

2. Optional Rider :

a. Accidental Benefit Rider: On death arising as a result of accident during the term of the policy,

an additional amount, equal to Accident Benefit Rider Sum Assured is payable.

On total and permanent disability arising due to accident (within 180 days from the date of

accident), the Accident Benefit will be payable in monthly installments spread over 10 years. If

the policy becomes a claim either by way of death or maturity before the expiry of the said

period of 10 years, the disability benefit installments which have not fallen due will be paid

along with the claim.

The disability due to accident should be total and such that the Life Assured is unable to carry

out any work to earn the living. Following disabilities due to accidents are covered:

a) irrevocable loss of the entire sight of both eyes, or


16/31

b) amputation of both hands at or above the wrists, or

c) amputation of both feet at or above ankles, or

d) amputation of one hand at or above the wrist and one foot at or above the ankle

The future premiums shall be waived after the disability claim is admitted.

LIC's Je eva nsMangal

Age (yrs.) 35

Terms years 10

sum Assured 30000Annual Premium 1324.50

Endofyear

TotalPremiumpaid till endof year

Benefit payable ondeath duringthe year

Benefit payable onsurvival/maturityduring the year

Guaranteed Guaranteed

1 1324.50 30000 0

2 2649.00 30000 0

3 3973.50 30000 0

4 5298.00 30000 0

5 6622.50 30000 0

6 7947.00 30000 0

7 9271.50 30000 0


17/31

8 10596.00 30000 0

9 11920.50 30000 0

10 13245.00 30000 13245.00

About SbiLife -products

SBI Life - Suraksha Plus

SBI Life Suraksha Plus a pure term non participating product for all types of Groups

such as Employer - Employee Groups, Credit Card / Banks / Mutual Fund Customer and any

group of people sharing a common view, at a very affordable premiumwherein SBI Life aimsat Protecting your members and their family under all circumstances.

Key Features :

Multiple premium payment mode options available

You can pay a Single Premium or pay regularly yearly, half yearly, quarterly or

Monthly

Free Cover Limit facility available

Cover spouse and /dependant parent(s) of your member

Insured have the choice to select any of the below options* in addition to basic life

cover* of your member

Option 1 : Accidental Death Cover for the Group Member

Option 2: Basic Life Cover +Accidental Death Cover for Spouse/Dependent

Parent(s) of the Group Member.

Option 3: Accidental Death cover for Spouse and / Dependent parent(s)


18/31

Surrender facility available for Single Premium mode.

Eligibility Criteria :

Entry Age (as on last

birthday)Group Size

Min : 18 Years

Max : 69 Years

Min.: 50 members

Max : No Limit

Premium Payment OptionMinimum

Premium :

Single Premium OR

Regular Premium

Yearly

Half Yearly

Quarterly

Monthly

RP : Rs. 1,000/- Per

Scheme

SP : Rs. 5,000/- Per

Scheme

Benefits:

Maturity Benefits :No maturity benefits payable as it is a Pure term Product

Death Benefit :

For a Group Member:

In case of death due to any reasons, the Basic Sum Assured is payable.

If option 1 is chosen, in case of death due to accident, an additional accidental sum

assured will also be payable.


19/31

If option 2 is chosen:

In case of death due to any reasons, the basic sum assured for spouse/ dependent

parent(s) is payable.

in case of death due to accident, an additional accidental sum assured for spouse /

dependent parent(s) will also be payable.

If option 3 is chosen, in case of death due to accident, the accidental sum

assured will be payable for the cover of spouse / dependent

parent(s).

Grace Period:

A 30 days grace period is available for all modes except monthly which is 15 days.

SBI Life - Sampoorn Surak sha

Introduction:

SBI Life - Sampoorn Suraksha is a yearly renewable group term insurance plan offeringexcellent protection at affordable rates. This plan is available for different formal and informalgroups such as Employer-Employee groups, Borrower / Depositor Groups, Professional /Affinity Groups etc.

Key Features:

Provides financial support to the family members / dependents in unfortunateevent of death of the group member

Flexible options:

Convertibility

Spouse cover benefit

Death benefit settlement

Terminal illness benefit

Range of riders available for comprehensive coverage


20/31

SBI Life - Group RideAccidental Death

Accidental Partial Permanent Disability

Accidental Total Permanent Disability

Accident and Sickness Total Permanent Disability

Accelerated- Extended Critical Illness

Additional - Extended Critical Illness

Accelerated - Core Critical Illness

Additional - Core Critical Illness

SBI Life - Group Savings Protection Products

SBI Life - Nidhi Raksha is a unique Plan which will help protect and grow your

customers savings. This Plan is an excellent tool to ensure that your customers savings

will accumulate as originally planned, even in the unfortunate event of his/her demise.

The powerful protection under this Plan will thus lend a competitive edge to your savings

products.

*Key Features:

Offered to deposit holders of the master policyholder (bank/financial institution)

Cover is available for a term of 1 to 10 years, subject to a maximum cease age

of 70 years (age as on last birthday).

Sum Assured starting from as little as Rs.5, 000/-, with no maximum limit.

Cost effective insurance ideally suited to protect planned savings

Nomination facility available for each member

Simple joining process


21/31

Attractive Rebates

SBI Life Cap Assure Gratuity Scheme :

It is a Non-Participating yearly renewable traditional Group Gratuity Scheme. Under this

scheme, the contributions paid continue to accumulate on traditional platform of

investments and at the end of the financial year; an investment income earned on your

contributions is credited to your gratuity fund account.

Key Features:

Capital Guarantee on Fund Under Management

Unique Pooling Fund Advantage: Get higher returns based on aggregated value of

all your non-Linked funds

Additional Funding up to 3% to absorb exit penalty charged by the previous

insurer

Flexibility to transfer partially your fund from this scheme to our Unit Linked

SBI Life Golden Gratuity scheme!

No Suicide Exclusion clause for basic life cover

Additional benefit for your employee through Group Accidental Death and

Permanent Disability rider

Benefits:

On Retirement/ Resignation/ Termination: Higher of accrued gratuity benefits

payable as per scheme rules or the Gratuity Act.

On occurrence of Total Permanent Disability (TPD) : Higher of accrued

gratuity benefits payable as per scheme rules or the Gratuity Act + Rider Sum

Assured, if any, in case of TPD due to accident, will be payable to the employee.

On an unfortunate Death: Higher of accrued gratuity benefits payable as per

scheme rules or the Gratuity Act + Basic Sum Assured as opted for by the master

policy holder + Rider Sum Assured, if any, in case of death due to accident


22/31

However, maximum benefit under SBI Life - Accidental Death & Total

Permanent Disability rider will be limited to lower of basic

sum assured or Rs. 5 Lacks.

Grace Period:

A period of 30 days is given to withdrawal from the policy.

Revival Period:

Life Cover can be revived within two years from the first due but unpaid premium,

subject to payment of risk premium for the future.

Tax Benefits*:

For Employer:

The initial and Annual contributions made through an approved Gratuity trust can

be claimed as business expenditure as per the provisions under section 36 (1) (v)

of the Income Tax Act, 1961 subject to maximum limit of 8.33% of annual salary

in respect of each member.

Income of investments is exempt from tax under section 10(25) (IV) of the Act.

For Employee:

Gratuity benefits are tax free up to Rs. 3, 50,000 u/s 10(10) in the hands of

employee.

Gratuity payment may be bettered by employer over and above Rs. 3, 50,000

taxable. (However, in this case the tax free limit as per above will not change.)

The contribution made by the employer is not included in the value of taxable

perquisites in the hands of the employee.

Any death benefit under the Group Term Insurance is tax-exempt under section

10 (10D) of the Income Tax Act, 1961


23/31

SBI L ife - Superannuation schemes:

1. Defined Benefit Scheme: The amount of pension and the other benefits are pre-defined in

the scheme rules. Contributions required to fund past service as well for the future service

liability of the member are determined by Actuarial valuation.

2.Defined Contribution Scheme:

The amount of contribution is pre-defined in the Scheme Rules and an Actuarial valuation maybe performed, if required.

Key Features:

Capital Guarantee on Fund Under Management Unique Pooling Fund Advantage: Get higher returns based on aggregated value

of all your non-Linked funds

Additional Funding up to 3% to absorb exit penalty charged by the previous

insurer

No Suicide Exclusion clause for basic life cover

Additional benefit for your employee through our SBI Life - Group Accidental

Death and Permanent Disability Rider

Benefits:

On Retirement/ Resignation/ Termination: The employee receives either the

defined

Pension or its equivalent in Purchase Price as per the Scheme Rules

On occurrence of Total Permanent Disability: The member receives

the accumulated amount

To his/her credit + Rider Sum Assured, if any, in case of TPD is due to an

accident

On an unfortunate Death: The employee receives either defined Pension amount or

its equivalent in Purchase Price as per the Scheme Rules, + Basic Sum Assured as


24/31


25/31

Life Cover can be revived within two years from the first due but unpaid premium, subject to

payment of risk premium for the future. Revival will be treated as per underwriting rules at that

time

Tax Benefits *: The risk premium paid towards the life cover shall be treated as business

expenses.

B enefit to Employers

The Employer will have a better chance of retaining the service of efficient and

experienced staff. Better employee morale will lead to grater efficiency and

productivity.

Annual Contribution by the employer to an approved superannuation fund in respect

of any particular employee will be treated as expenditure to the company, However if

the contribution exceeds Rs 1, 00,000/- FBT is payable. (In accordance with Income

Tax Rules, 87 & 88

Any income received by the trustees on behalf of an approved superannuation fund is

exempted (Section 10 (25) (iii) of the Income Tax Act, 1961).

Benefits to Employees

payment of contribution towards an approved superannuation fund is eligible for

deduction, subject to a maximum of Rs. 1,00,000 (Section 80 C of the Income Tax

Act, 1961)

Commuted value i.e. commuted part of the pension (maximum up to 1/3 of the

pension in case where gratuity is received or 1/2 of the pension incase gratuity is not

received), is tax free on death or retirement or attainment of vesting age.

Employers contribution will not be treated as perks in the hands of the employee.(as

per provision 17(2)(v))

Uncommuted Pension will be treated as salaried income and taxed accordingly.


26/31


27/31

At the beginning of each policy year, the Master Policyholder may request for a change

in sum assured, within the permissible sum assured limits.

Grace Period Provision:

A grace period of 30 days will be allowed for payment of contribution for Regular mode(15 days for Monthly mode).

Revival Period:

2 years revival period will be available, from the first unpaid contributation.

Surrender Facility:

Master Policyholder can surrender the Master Policy from 2nd Policy year onwards

subject to conditions applicable.

Tax Benefits*:

Members total contribution, including service tax is entitled for income-tax rebate under

Sec 80C of the Income Tax Act.

The entire claim amount, including interest earned, payable on Maturity or on death is

free from income-tax (U/s 10(10D) of income tax Act.

The life cover premium paid by the employer towards Life Cover is treated as businessexpenses (U/s 37 (1)) of income tax Act.

SBI Life Kalyan ULIPTM(Unit link insurance policy)

SBI Life Kalyan ulip is a non-participating, unit linked group insurance scheme. It is truly

unique with its variety of features that benefit not only the Master Policyholder but also to each

Group Member. This plan is a one-stop solution to all your fund management needs and can be

extended to both employer-employee and non-employer-employee groups. You get the

flexibility of paying in your contribution at any time during the year according to scheme rules.

What doesSBI Life Kalyan ULIPTMoffer?


28/31

A Group ULIP platform to manage your Group funded needs as below

Defined Benefit (DB) scheme

to manage your Gratuity, Leave Encashment, Superannuation DB or any such similar

schemes.

Defined Contribution (DC) scheme

to manage your Superannuation DC or any such similar schemes.

Hybrid Scheme because life is never black and white!

It is a unique underpin scheme to fit into any offerings in the marketinvest

your contributions as DC with DB floor or vice-versa.

Salient Features of SBI Life Kalyan ULIPTM:

One of the lowest fund management charges in the market

our highest charge is probably the lowest for many!

Loyalty Additions, based on Fund Size!

We know how loyalty should be rewarded. Higher the fund size higher will be the

Loyalty Additions.

Inbuilt Life Cover We not just manage your funds but also care for lives of your

members. This plan comes with an automatic Life Cover of Rs. 1000/- for each member,

at no additional cost.


29/31

COMPARISION BETWEEN GROUP INSURANCE

AND

INDUSTRIAL LIFE ASSURANCE

Premium to paid is decided by the insurer,

there is no direct relation between insured and

the insurer .

Premium to be paid is decided by the insured

,there is direct contact between the insured and

insurer insured is free to chosen PPT.

Maturity benefits given under this policy above

1, 00, 000.

Maturity benefits given under this policy is

between 5,0000 to 1,00,000.

GOUP INSURANCE INDUSTRIAL LIFE

ASSURANCE

Group insurance is given to a complete group

and the minimum number of the group must be25.

Industrial life assurance is a given to a single

individual and their family member, etc.

A master policy is given which contain term

and condition of the policy, benefits, maturity

fund insurer.

A single policy is given which contain term

and condition of the policy, benefits, maturity

fund .

Premium to be paid is on yearly or monthly

basis.

Premium to be paid is on monthly, weekly and

daily basis .


30/31

CONCLUSION:

Group insurance and industrial insurance are two different insurance policies with

different features.

Group insurance is provided for member of a group who are related to a legal entity and

the group should be made for other than taking insurance cover while industrial insurance

is offered to daily wages workers and their families members to protect them from any

uncertainties which may take place in future.

Under group insurance a master policy is issued which covered benefits term and

condition related to the policies whether in industrial insurance a single policy is given.

Eligibility criteria for group insurance and industrial insurance:

Under group insurance the group should be legal entity, and formed for the

purpose other than taking insurance protection while in industrial insurance there

is no need for individual related with any legal entity.

Under group insurance the minimum number of group should be 25 but in

industrial insurance policies is given to a single individual.

The group age criteria for both the policies are as same 18- 65 yrs.

Under group insurance the premium of policies, maturity fund, sum assured are

calculated by the insurance company on simple fixed formula but in industrial life

insurance premium to be paid, maturity fund, sum assured of the policies is chosen by the

insured.


31/31

BIBLIOGRAPHY:

1. Websites used:

www.lic.co.in

www.sbi life insurance.com

1.Brochures of the company.LIC and SBI Life insurance

3. Book used:

M.N .Mishra- Principles & practice ofInsurance

IC-33

IC-23
http://www.lic.co.in/http://www.sbi/http://www.sbi/http://www.sbi/http://www.lic.co.in/

Documents

PRITAM -GROUP INS.AND INDUSTRIAL ASSURANCE PLAN