In India, an establishment is liable to subscribe to EDLI (Employee’s Deposit Linked Insurance Scheme) and provide life insurance coverage to all its employees, provided it has a minimum of 20 permanent employees who work full-time and The Employees Provident Fund and Miscellaneous Provisions Act, 1952 applies to it.
As per Section 17 (2A) of the Act, the employers might be exempted from contributing to this scheme, if they have better insurance benefits than the cover that is provided by the EPFO (Employee Provident Fund Organization). Reliance Life Insurance Group Term Assurance Plan EDLI is a plan that employers can select as it is one of the best alternatives and because it has multiple benefits to offer.
Key Features of Reliance Group Term Assurance Plan EDLI:
Some of the features of Reliance Group Term Assurance Plan EDLI are as follows:
- This policy settles claims quickly and it is not linked to the balance in the account.
- Employers can choose to take an enhanced coverage that varies between Rs.62,000 and Rs.1,50,000, for the same premium amount that is payable to RPFC.
- The Reliance Life insurance coverage is dependent on the age of the industry and its risk profile.
- This policy has a one year renewable contract.
Benefits/Advantages of the Reliance Group Term Assurance Plan EDLI:
Mentioned below are some of the benefits offered by Reliance Group Term Assurance Plan EDLI:
- This policy provides benefit in an event of death that is caused due to accidental or natural reasons.
- At the time of maturity, this policy can be renewed if both parties of the contract agree to the terms and conditions.
In what scenario are the benefits not paid?
Reliance Group Term Assurance Plan EDLI does not pay death benefits, if the insured (insane or sane) commits suicide within a period of 12 months from the date his/her insurance coverage started.
The policy will not pay the accidental or disability death benefit, if the death is caused, indirectly or directly, due to any of the reasons mentioned below:
- Practicing another occupation. If the same has been agreed by the Insurance Company, then the benefit will be provided, otherwise not.
- Participation in an illegal or criminal act.
- Intentional self-injury or illness (partly or fully).
- Participation in any kind of strike, riot or civil commotion.
- Intake of drugs or alcohol unless the same was prescribed by a registered medical practitioner.
- Practicing racing or racing of any kind apart from the one done on foot.
- Attempting to fly or flying, or attempting to use or using, any aerial device that is not recognized as a charter service or an airline.
- Active air force, naval, military or similar, or an invasion, foreign enemies act, hostilities or war like operations (whether war has been declared or not), mutiny, war, insurrection, military rising, rebellion, usurped or military power or any act of violence or terrorism.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017