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| Generic Benefit Illustrator | Email | Ask for a Visit |
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Introduction
Key Features
Benefits
Tax Benefits
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Introduction:
Gratuity is a statutory benefit, governed by Payments of Gratuity Act, 1972. As per the Act, gratuity is payable if an employee has rendered minimum 5 years of service at the time of exit. The minimum benefit payable is 15 days salary based on last drawn salary for each service year rendered. However, an employer can better the terms of benefits..
Here, the principal concern will be to safeguard and availability of sufficient funds to meet the company’s obligation for statutory Gratuity Payments. Hence, you would definitely want prudent fund management at least of the possible costs. Therefore SBI Life provides SBI Life - CapAssure Gratuity Scheme - a scheme that not only guarantees your investment but also offers additional funding and many more added benefits…!
SBI Life - CapAssure 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.
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Key Features:
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Capital Guarantee on Fund Under Management
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Unique Pooling Fund Advantage: Get higher returns based on aggregated value of all your non-Linked funds
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Additional Funding upto 3% to absorb exit penalty charged by the previous insurer
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Flexibility to transfer partially your fund from this scheme to our existing Unit Linked schemes!
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No Suicide Exclusion clause for basic life cover
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Additional benefit for your employee through Group Accidental Death and Permanent Disability rider (UIN: 111B002V01)
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Benefits:
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On Retirement/ Resignation/ Termination: Higher of accrued gratuity benefits payable as per scheme rules or the Gratuity Act.
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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.
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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.
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However, maximum benefit under SBI Life - Accidental Death & Total Permanent Disability (AD&TPD) rider will be limited to lower of basic sum assured or Rs. 5 Lacs.
Grace Period:
A grace period of 30 days will be allowed for payment of life cover premium.
However, if death occurs during the grace period, the death claim shall become payable subject to the receipt of the due and unpaid risk premium or renewal risk premium for the entire group from the Master Policyholder.
In case of non-receipt of the risk/rider premium within a grace period of 30 days, the life cover/rider would lapse. However, the accumulation of the fund will be continued without life cover/rider and the gratuity claims will be settled subject to the availability of funds.
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.
Charges:
Our charges are certainly most competitive and are designed to benefit you irrespective of size of your Gratuity fund. We ensure you pay only for what you benefit -- No hidden costs! What more….. we ask no Fund Management Charges, no Administration Costs and recovery of Additional Funding is without interest !!!
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Tax Benefits*:
For Employer: |
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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.
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Income of investments is exempt from tax under section 10(25) (iv) of the Act. |
For Employee: |
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Gratuity benefits are tax free up to Rs. 10,00,000 u/s 10(10) in the hands of employee.
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Gratuity payment may be bettered by employer - over and above Rs. 10,00,000 taxable. (However, in this case the tax free limit as per above will not change.)
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The contribution made by the employer is not included in the value of taxable perquisites in the hands of the employee.
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Any death benefit under the Group Term Insurance is tax-exempt under section 10 (10D) of the Income Tax Act, 1961
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*Above tax benefits are as per Income Tax Act, 1961 and Income Tax Rules, 1962. Please consult to your Legal/ Tax expert for details.
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The above information is a brief summary of SBI Life - CapAssure Gratuity Scheme.
For further details, ask for an appointment with our Relationship Officers on below mentioned number or addresses.
1800 22 9090 (toll free) or Email: corporate@sbilife.co.in
Insurance is subject matter of solicitation.
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Section 41 of Insurance Act 1938 states:
(1) 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:
Provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.
(2) Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees
Section 45 of Insurance Act, 1938 :
"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 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 policy-holder and that the policy-holder 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 proposal".
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