As per the Payment of Gratuity Act, 1972, Gratuity is a statutory benefit which will be provided to an employee. When an employee exits a company, while fulfilling the criteria prescribed in the Gratuity Act, this lump sum amount will be paid out to the employee. A gratuity liability will be created for you the employer, by these statutory payments to employees. The highlight of the plan is that you, the employer, will find that sufficient funds are available to meet your company's obligation for these gratuity payments. Your statutory liability as an employer can be met with ease when you contribute to the ICICI Prudential's Group Gratuity Plan.
Eligibility of ICICI Pru Group Gratuity:
|Minimum size of the group||10 or more members|
|Minimum/ maximum entry age||15/ 85 years|
|Minimum policy term||1 year|
Features of ICICI Pru Group Gratuity:
Following are some of the attractive features of ICICI Pru Group Gratuity:
|Plan options||Unit linked|
|Minimum policy term||1 year|
|Bundled life cover||ICICI Prudential group gratuity plan provides a flat cover of Rs. 1000 to the employees|
|Scheme administration||Monthly addition and deletion of members|
|Premium paying term||Yearly/ Half yearly/ Quarterly/ Monthly|
Benefits of ICICI Pru Group Gratuity:
Following are some of the main benefits ICICI Pru Group Gratuity:
Scheme setup assistance - ICICI Prudential life values their customers above all else which is why they have made the ICICI Pru Group Gratuity a flexible plan which allows customizing of solutions to meet the specific needs of customers and also and adheres to the Gratuity Act.
Dedicated service team - ICICI Prudential understands that when you purchase a policy from them it is the beginning of a relationship. That is why the company has a dedicated group service team which appoints a relationship manager to the policyholder. This individual would be dedicated to answer all of your queries and service all your requirements.
Managing investments – There is a wide range of investment options that will accommodate all of the customer’s needs.
Claim Settlement - values your time above all else which is why they settle claims and payouts within specified turnaround time.
Tax Benefit – Both the employer and employee will be benefitting with the . The employer will benefit as the plan is an annual contribution which is allowed as expenditure/deduction in computing taxable income of up to 8.33% of employees’ salary. The employee will benefit as the gratuity received is exempt from Income tax subject to conditions of section 10(10) and up to the limit specified.
Bundled - a flat cover of Rs. 1000 will be provided by ICICI Prudential group gratuity plan to the employees.
How the ICICI Pru Group Gratuity Works
ICICI Pru Group Gratuity makes sure that each employee in the plan receives an assured sum upon their exit from the company. To activate the policy, the employer must put aside monies to meet the gratuity liability which will go into the ICICI Prudential group gratuity plans. This amount will subsequently earn returns and also aid in growing the funds in line with the gratuity liability. Finally, when the employee exits the company, the fund created under the plan will be used to make claim payments.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017