Max Life Group Gratuity Premier Plan

Every growing organization has some financial and legal responsibilities towards its employees. Gratuity is one such significant liability paid to employees after successful 5 years completion in the company. In a way, it is a retention tool encouraging employees to stay in the organization for a longer duration. Every company has to have sufficient funds to fulfill the gratuity needs of their employees at the right time. As employee strength increases, managing gratuity payments become more expensive and unmanageable. Getting an effective gratuity plan is imperative to retain employees.

 

Max Life Group Gratuity Premier plan is one such great employee retention tool which facilitates employers to fund their gratuity liability through good market-linked returns. This plan helps you to deliver long term results for your investments depending upon the performance of the funds chosen by you.

 

3 reasons why this is an ideal plan for employers:

  • Meet your obligations under the Payment of Gratuity Act 1972 with good market-linked returns
  • Pay low maintenance charges with good market-linked returns
  • Manage large scale gratuity payment effectively with complete assistance from the company

What do I get with this plan?

What do I get with this plan?

Here’s all you need to know about this plan

Here’s all you need to know about this plan

Insert Image Death Benefit

Payable on death provided the policy is in force

On the death of your employee, the nominee will receive accrued gratuity based on the salary at the time of death subject to availability of fund in the scheme plus an amount of Rs. 1,000 from the compulsory insurance cover.

Insert Image Maturity Benefit

Payable on retirement or resignation of a member from employment

At retirement or resignation, your employee will receive accrued gratuity based on their respective salary. This benefit will be paid subject to availability of fund in the scheme.

Insert Image Termination or Surrendering Benefits

On termination or surrendering the policy, your employee will receive the fund value at that time after deducting the applicable surrender charges.

Insert Image Loyalty Additions

Additional benefits payable only in case the policy is in force

The loyalty additions are based on fund value (before the addition of loyalty addition) calculated at the end of each month. These benefits are added to the ‘Unit Fund’ in form of additional units and payable only in case policy is in force. Below is the percentage of units added to your unit fund at the end of every month basis the fund size:

The additional units shall be apportioned basis the proportion of investment into each fund chosen by the Policyholder.

Fund Size (at the time of loyalty addition)

Loyalty Addition expressed as a percentage of Unit Fund ( Added at the end of every month)

Less than Rs.10 Crores

Nil

Greater than or equal to Rs.10 Crores

0.0083% per month

(0.1% per annum)

Step 1: Create a Trust to administer gratuity scheme

The employer first creates a trust and appoints trustees to administer the gratuity scheme. However, it may be noted that the trust may or may not be created by the employer. Therefore under the Policy, either Trustees or the employer can be a Policyholder.

Step 2: Make Initial contribution based on actuarial advice

The Policyholder pays an initial contribution (in respect of any past service gratuity liability of the employer) & annual contribution  in respect of any gratuity liability accruing in respect of the service completed by the employees in the current policy year) to Max Life Insurance Company towards gratuity liability.

These contributions may be paid at the time of the policy issuance or at any time during the first five policy year in not more than five annual installments.

These payments would normally be based on upon the actuarial advice to the Trustees by an Independent consulting actuary (who is not employed by Max Life).

Step 3: Choose your Investment Strategy

The Policyholder can invest the contributions in any of the 4 investment funds viz. Conservative Fund, Balanced Fund, Growth Fund and Bond Fund offered by Max Life Insurance. Upon choosing the fund, a unit account is opened and managed for the policyholder in which units are allocated following the receipt of contributions and canceled for the purpose of paying gratuity benefit and charges.

Units will be deducted from the unit account to pay out the policy charges and the gratuity benefit amount (other than the life insurance benefit) determined by the trustees.

A member on either leaving service due to retirement/ resignation or on death/disability during the service, or any other such event that may terminate the employment after five years, Max Life Insurance will pay the benefit by redeeming the units in the investment funds to pay the gratuity benefit.

The condition of continuous service of five years is not necessary if the termination of employment is due to death or disablement. The contributions and benefits under the product will be applicable as per scheme rules.

Please note that the maximum liability of company shall be limited to the unit account value of the policy.

Initial Contribution:
Minimum: Rs. 500,000
Maximum: No Limit , as per actuarial valuation AS-15(R)

Life Insurance Cover
Fixed life insurance cover of Rs. 1,000 per member

Group Size
Minimum
: 10 at time of choosing scheme
Maximum: No limit

Policy Term
One Year Renewable Scheme

Entry Ages for employees (as on last birthday)
Minimum - 18 Years
Maximum - 74 Years

Maximum cover ceasing age (as on last birthday): 75 Years

 

Asset Type

Conservative Fund (%)

Bond Fund (%)

Balanced Fund (%)

Growth Fund

Risk Factors

Low Risk

Low Risk

Medium Risk

High Risk

Government Securities

50-80

60-100

20-50

0-30

Corporate Bonds

0-50

20-40

0-30

Money Market Instrument/Cash

0-20

0-40

0-20

0-20

Equities

Nil

Nil

10-40

20-60


 

The Company may add, amend, alter, combine or close a fund or funds as per the File & Use procedure of the IRDAI. Policyholders will be informed at least 60 days before such action and policyholder will be allowed to transfer their funds to alternative funds without any extra charges provided their request is received by the Company before the scheduled date of such amendment, alteration or the closure.

In case, policyholder does not respond within the given time period of 60 days, the company shall transfer the existing funds to the "least risky" of the available funds. "Least risky" refers to the fund with the highest proportion of Government securities.

Name of the Fund

Conservative Fund

Bond Fund

Balanced Fund

Growth Fund

Fund Management Charge (Per annum)

0.40%

0.40%

0.45%

0.50%

 

Note: Company may increase the fund management charge from time to time after clearance from IRDAI but shall never exceed 1.35% of the Fund Value per annum.
*Above charges subject  to applicable taxes, cesses & levies as imposed by the Government.

Downloads Actions
Prospectus
Leaflet
Policy Contract
Premium Rates Table

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Why Choose Max Life

Here are some of the numbers which speak about our accomplishments

Why Choose Max Life

Here are some of the numbers which speak about our accomplishments
Claims Paid Percentage

98.26%

98.26%

Individual death claims paid (Src: Max Life Public Disclosure FY 2017-18)

Max Life Presence

210 Offices

210 Offices

Src: Director's Report FY 2017-18

Sum Assured

₹511,541 Cr.

₹511,541 Cr.

In force (individual) Src: Public Disclosure, FY 2017-18

Assets Under Management

₹52,237 Cr.

₹52,237 Cr.

Src: Public Disclosure, FY 2017-18

More reasons why our customers choose us
What companies have to say about our Group Plans
What companies have to say about our Group Plans

I am quite impressed by services provided by Max Life. They understood our specific requirements and closed the whole proposal well in-time. I would especially like to thank Mr. Kulkarni, our relationship manager, who completed all the formalities so smoothly. Our employees are also quite happy with the overall services. Thanks Max Life!

 

Mr. Kumar

Director

Let’s Connect

Let’s Connect

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