Group Scheme

8/8/2019 Group Scheme

1/19


2/19

Meaning

Life insurance protection to groups of people.

Allows to enjoy group benefits at really low

costs. Provides coverage for individuals and

sometimes their dependents.


3/19

Group Schemes Offered by LIC

Group LIC's Superannuation Plus

Group Term Insurance Schemes

Group Insurance Scheme in Lieu Of EDLI

Group Gratuity Scheme

Group SuperAnnuation Scheme

Group Savings Linked Insurance Scheme

Group Mortgage Redemption Assurance Scheme

Gratuity Plus

Group Critical Illness Rider


4/19

Group LIC's Superannuation Plus

Suitable for companies with employees desiringto have flexibility of choice of investment.

Scheme can be surrendered at any time after the

date of payment of first contribution. Policyholder may choose to pay contributions at

any time during the policy year.


5/19

Contd

The Value of the units is subject to market andother risks and there can be no assurance that

the objectives of any of the above funds will be

achieved. Facility of Switching between various funds. Four

switches every year are free of cost.


6/19

Group Term Insurance Schemes

Is meant to provide life insurance protection togroups of people.

Scheme offers covers only on death and there is

no maturity value at the end of the term. Every year on Annual Renewal date LIC charges

the premium depending upon the changes in size

and age distribution of the age group.


7/19

Contd

The Scheme may provide for a uniform cover toall members of the group or graded covers for

different categories of members.

The premium under such scheme may be wholly

paid by the employer.


8/19

Group Insurance Scheme in Lieu Of EDLI

The employer may be exempted fromcontributing to this scheme.

Settlement of claim is quicker.

Premium paid by the employer is treated asnormal business expenses for Income-Tax

purpose.

Every employee/ worker can be covered for

a uniform sum assured which will be

decided depending upon the group size.


9/19

GROUP GRATUITY SCHEME

It provides for life insurance cover at a veryminimal cost.

The policy can be surrendered at any time.

The value of units within each Fund can go up ordown depending on the different factors

affecting the capital markets.

Facility of Switching between various funds. One

switch every year is free of cost.


10/19

GROUP SUPERANNUATION SCHEME

The employer contributes a certain fixedpercentage of salary of each member.

Contributions are accumulated by LIC and the

accumulated amount is utilized to providevarious benefits:

ON RETIREMENT

ON DEATH

ON WITHDRAWAL

The annual contributions are treated as

deductible business expenses.


11/19

GROUP SAVINGS LINKED INSURANCE SCHEME

Protection at low cost without individualevidence of health.

Attractive returns on savings to meet post

retirement needs.

Simple procedures for granting life cover to large

groups under one umbrella.

Premium is decided on the basis of group size

and the occupation of the group.


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GROUP MORTGAGE REDEMPTION ASSURANCE SCHEME

Group Insurance Scheme for the borrowers ofHousing/Vehicle Loans from Financial Institutions

where Loan is recovered under EMI.

The minimum term of assurance is 3 years.


13/19

GROUP CRITICAL ILLNESS RIDER

Only full time permanent employees who are

actively at work will be eligible for Critical Illness

cover.

The relevant premium is to be paid by the Group

Policyholder.

The difference between the base sum assured

and the critical illness benefit already paid is

payable on death.


14/19

GRATUITY PLUS

Suitable for companies who wish to have theflexibility of choice of investments.

In case of death of member, life insurance cover

as opted for by Policyholder will also be paid by

the Corporation.

The policy can be surrendered at any time.

The value of units within each Fund can go up or

down depending on the different factors affecting

the capital markets.


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Number of schemes & the sum assured by LIC

Year No. of Schemes Sum Assured/Annuity Per Annum

Group Insurance (incl.Social

Security)

2008-2009

2007-2008

2006-2007

20,771

22,113

20,434

75,256.56

67,784.93

1,52,864.62

Group Superannuation

2008-2009

2007-2008

2006-2007

540

445

263

347.52

279.04

212.09

Linked Business G Plus*

2008-2009

2007-2008

2006-2007

24

46

20

62.21

138.38

97.68

*Scheme introduced during 2006-07


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Social Security Schemes

JanaShree Bima Yojana (JBY)

Shiksha Sahayog Yojana

Aam Admi Bima Yojana


17/19

JanaShree Bima Yojana (JBY)

To provide life insurance protection to the rural and

urban poor persons below poverty line and marginally

above the poverty line.

In the events of

*Death (other than by accident) of the member, anamount of Rs.30,000/- is payable.

*death/total permanent disability, due to accident, an

amount of Rs.75,000/-is payable.

*Permanent partial disability, due to accident, anamount of Rs.37,500/- is payable.

The premium under the scheme is Rs.200/-per annum

per member.


18/19

Shiksha Sahayog Yojana

This is a scholarship scheme launched on31.12.2001 for the benefit of children of members

of Janashree Bima Yojana.

The benefit is restricted to two children per

member(family) only.

No premium is charged for the scholarship.


19/19

Aam Admi Bima Yojana

In the event of death of a member prior to theterminal date, the Sum Assured of Rs.30,000/- will

become payable to the nominee.

A free add-on scholarship benefit for the children

of the members.

The premium shall be payable in yearly mode.

Documents

Group Scheme