It is important for an organisation to take care of its employees and thus present them with the best of policies so as to provide them with the best of additional benefits amongst which gratuity payment is an important one. Aviva New Traditional Employee Benefit Plan is a traditional group plan by Aviva Life Insurance which aims to help employers meet the fund management needs required to pay the gratuity and leave encashment to the employees upon their resignation, retirement or death.
Before an organisation decides to avail this plan, it is important that it knows the requirements to become eligible for this plan. The eligibility criteria for this plan are given in the table below:
|Parameters||Criteria for eligibility|
|Minimum age at entry||18 years|
|Maximum age at entry||74 years|
|Minimum Maturity Age||NA|
|Maximum Maturity Age||NA|
*Ages mentioned above are as on the policyholder’s last birthday.
Sum Assured is the minimum amount that the insured will get from the insurer. The sum assured won’t contain any benefits or bonuses that the insured will be entitled to. All the relevant information regarding sum assured for this plan are given in the table below:
|Minimum Sum Assured||Rs.1,000 per employee|
The premiums to be paid for this plan will be decided by the master policyholder and he/she will also take care of the funds as well. The premiums to be paid will depend on various factors such as the size of the group, average age, occupation, etc. The minimum contribution amount at the inception of the policy will be Rs.1 lakh. The relevant information regarding premiums for this plan is given in the table below:
|Master Policyholder||The head of the institution/employer|
|Minimum group size||10|
|Policy Term||1 year and subjected to be renewed|
|Premium||There will be a mortality charge of Rs.0.75 for every minimum sum assured that is Rs.1000.|
* Premiums will vary based on age, location, plan term, GST, and other factors.
Some of the features of the Aviva New Traditional Employee Benefit Plan
There are various benefits that an employee can enjoy under this plan. The policy will include various additions made to the fund from time to time. Those additions are:
|Death Benefit||Incase of an unfortunate death of the insured, the beneficiary will be eligible to be paid the sum assured.|
This plan does not contain any rider or add-on plan.
|Grace Period||There is no grace period for this plan.|
|Free-Look Period||A free look period of 15 days is provided during which the insured can return back the policy if he/she does not agree with the terms and conditions.|
|Reinstatement||A policy can be reinstated within five years of the date on which the policy was surrendered, lapsed or discontinued.|
This particular plan provides various tax benefits to its members under the Income Tax Act,1961. The tax benefits provided are:
Aviva Life Insurance not only provides you with various benefits that you are entitled to, but also presents you with various other non-policy benefits as a customer of Aviva Life Insurance. Some of the benefits provided are:
The Aviva New Traditional Employee Benefit Plan is a simple traditional group plan which aims to help the employer make it possible to pay off his/her employees the gratuity value upon their resignation, retirement or even death. This particular plan also provides various tax benefits to the members registered, including reviving it within five years as well.
Aviva Life Insurance is a joint venture between Dabur Invest Corp and Aviva International Holdings Limited, two of the oldest financial institutions functioning today. Aviva boasts of serving more than 40 million customers spread across 20 plus countries. It is known to have more than 13,000 financial advisors and has a large variety of products to offer to its customers. Aviva is also considered to be the best when it comes to taking care of their customers as they have 100% success in addressing their consumers’ grievances. They are the recipient of various awards including ‘Certificate of Excellence’ at the PR Week Asia Awards 2014 in Hong Kong.
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