A benefit that an employer offers an employee whereby an employee can accumulate his/ her leave over a period of time is known as leave encashment. ICICI Pru Group Leave Encashment ensures that the employee’s accumulated leave is paid in lump sum to their dependants on death, voluntary retirement, retirement, disablement etc. The accumulated leave must be in accordance with guidelines framed by the employer. Major adverse cash flow situations can be created by employee exits as they can be uncertain. Thus it is extremely important for you, as an employer, to setup a leave encashment fund to meet these unexpected future payments from time to time. Contributing to the ICICI Prudential's Group plan can help you meet your Leave Encashment liability with ease.
Eligibility of ICICI Pru Group Leave Encashment:
|Minimum entry age||15 years|
|Maximum entry age||85 years|
|Minimum policy term||1 year|
Features of ICICI Pru Group Leave Encashment:
Following are some of the attractive features of ICICI Pru Group Leave Encashment:
|Plan options||Unit linked|
|Minimum policy term||1 year|
|Bundled life cover||ICICI Prudential group leave encashment plan provides a flat cover of Rs. 1000 to the employees|
|UIN of ICICI Pru Group Unit Linked Employee Benefit Plan:||105L137V01|
|Premium paying term||Yearly/ Half yearly/ Quarterly/ Monthly|
Benefits of ICICI Pru Group Leave Encashment:
Following are some of the main benefits ICICI Pru Group Leave Encashment:
Scheme setup assistance - Pru Group Leave Encashment is a flexible plan which allows customizing of solutions to meet the specific needs of customers and also and adheres to the Gratuity Act.
Claim Settlement - ICICI Prudential values your time above all else which is why they settle claims and payouts within specified turnaround time.
Dedicated service team - ICICI Prudential has wisely invested in a dedicated group service team because the relationship with customers is highly valued by the company. This team appoints a relationship manager to the policyholder who would service all of the requirements of the customer.
Managing investments – A wide range of investment options are up for grabs, which will make sure that all of the customer’s needs are accommodated.
Tax Benefit – Both the employer and employee will be benefitting with the ICICI Pru Group Leave Encashment. Contribution paid by the employer can be considered as a business expense, which will benefit the employer. The plan falls in the category of Section 10(10AA) of the Income Tax Act which will benefit employees.
Bundled life cover - a flat cover of Rs. 1000 will be provided by ICICI Pru Group Leave Encashment plan to the employees.
How the ICICI Pru Group Leave Encashment Works
ICICI Pru Group Leave Encashment is a plan by ICICI pru life benefiting both employer and employee. It encompasses the employer putting aside monies to meet the Leave Encashment liability. The monies put aside is handed over to the ICICI Prudential Leave Encashment plans, so that returns are earned on it. It also helps to grow the funds in line with the Leave Encashment liability. When the employee exits the company, the fund created under the plan is used to make claim payments.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017