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  • Aviva Group Gratuity Advantage


    Gratuity is a statutory benefit for employees according to the Payment of Gratuity Act, 1972. If an employee has at least five years of continuous service, he or she is eligible for 15 days pay for each year. A group gratuity fund offers tax benefits to employers in addition to providing financial security to employees at the time of their retirement, leaving an organisation or death.

    A group unit-linked life insurance policy, Aviva Group Gratuity Advantage is aimed at the corporate sector. Aviva Group Gratuity Advantage can be customized to avail of various benefits in addition to the statutory obligations. This plan provides a lump sum to employees or their nominees, tax benefits to employers and Rs.1,000 in the event of death of the policyholder in service. This Aviva life Insurance plan offers customers the flexibility to choose from various unit-linked funds available in addition to the option of transferring previous service contributions.

    Eligibility Conditions of Aviva Group Gratuity Advantage


    Minimum: 18 years

    Maximum: 74 years (last birthday)

    Key Features of Aviva Group Gratuity Advantage


    Group unit-linked non-participating life insurance policy


    Master Policyholder: Employer or trustees


    Minimum: 10 members. The following table shows the coverage under this plan.





    Additional amount equal to the Sum Assured

    is paid

    Master policyholder is paid an amount equal to the amount payable to a member, by canceling units of equal amount from the master policyholder's account

    Master policyholder can get the units cancelled. The allocation proportion last specified by master policyholder will be used


    Policy Term

    One year


    Minimum: Rs.1 lakh (inception)

    Trustees can pay contributions with regards to past service liability in 5 installments annually

    Premium Payment

    • Premium is determined on several factors such as the group’s size, age, occupation, individual members’ sum assured, payment frequency. The rate of premium is quoted after data regarding individual employees is received.

    • Premium (cost of life cover and riders) is paid by the master policyholder and will be collected separately and not deducted through units’ cancellation.

    Sum Assured

    Minimum: Rs.1,000 (per head/employee)

    Maximum: Rs. 1 crore (per head/employee)

    For the first Rs.1,000, no mortality charges will be deducted

    Policyholders can increase or decrease their Sum Assured, subject to underwriting requirements


    Seven fund options available as listed below:

    Name of the fund

    Objective of the fund

    Pension Cash

    Protects nominal value of investments

    Pension Debt

    Capital growth progressively

    Pension Secure

    Progressive returns on investments

    Pension Growth

    Capital growth by investments in equity markets

    Pension Balanced

    Capital growth by investing in debt and equity markets and ensuring balance between risk and return

    Pension Short-term debt

    Progressive returns

    Pension Income

    Progressive returns by investment in safe funds


    5 years from the last date of lapse, failing which, the plan stands terminated


    This plan can be surrendered by giving a notice 90 days prior to termination.

    Allocation Rate

    Allocation rate, under this plan is defined as the proportion of contributions used to buy units.

    Freelook period

    15 days

    Grace period

    30 days


    Not allowed

    Partial Withdrawals

    Not permissible

    Benefits of Aviva Group Gratuity Advantage

    Tax Benefits

    According to Income Tax Act 1961, the following tax benefits are available under this plan:

    • Premiums paid up to 8.33% of a salary package in a year are tax exempt.

    • Under section 10(10)D, gratuity received up to half-month's average salary for each service service year (maximum of Rs.10 lakh) is exempt.

    • Benefits paid on death are exempt.


    • Gratuity Benefit is paid by redeeming units in allocation proportion.

    • Upon death of the member, besides the gratuity benefit, Sum Assured and Rider benefits will also be paid.

    • Maximum liability under this plan is limited to the fund value


    The following table lists out the different types of charges applicable under this plan

    Allocation Charge

    Policy Year

    Allocation Rate





    Surrender Charge

    Policy Year



    Lower of 0.05% of

    fund value or Rs.5 lakh



    Fund Management Charge

    0.08% p.a for all funds

    Switching Charge



    Group Double Accident Benefit (DAB) Rider

    Premium will not depend on the member’s age and will be paid by the master policyholder separately

    Group Permanent Disability (PTD) Rider

    Premium will be paid by master policyholder separately

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    GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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