The Group Leave Encashment Scheme is a non-participating plan that helps employers encash leaves for the employees. This fund-based variable plan also offers a life cover for members of the scheme. Hence, in case of death of any of the employees, the sum assured for that particular member of the policy will be paid to the nominee.
The insurer lists out certain criteria that should be met for the scheme to be purchased.
|Minimum entry age||18 years|
|Maximum entry age||75 years|
|Maximum age at renewal||80 years|
|Minimum group size for existing scheme||No restriction|
|Minimum group size for new scheme||10|
|Maximum group size||No restriction|
The sum assured is the total amount that is payable on the death of a member under the group scheme.
|Minimum sum assured||Rs.1,000|
|Maximum sum assured||No restriction|
The ‘Contribution’ refers to the amount contributed by the employer to secure the life cover and leave encashment benefits.
|Minimum contribution||Rs.10,000 at the time of inception|
|Maximum contribution||No limit|
|Policy term||Annually renewable|
|Death benefit||In case a member enrolled under the policy dies while in service, the sum assured along with the leave encashment benefit are paid to the nominee. The leave encashment benefit is determined based on the scheme rules. However, the benefit payable is limited to the remaining policy account value in the policy account.|
|Retirement/Leaving service benefit||On retirement of a member, who is enrolled under the policy, the leave encashment benefit is provided as per the scheme rules. The benefit is limited to the policy account value remaining in the account.|
|Cooling off period||The first 15 days of the policy are provided to the grantees as the cooling off period. In case the grantees are not satisfied with the terms and conditions, the policy can be returned to the insurer. The amounts received are then refunded after the deduction of stamp duty charges and proportionate mortality charges.|
|Surrender benefit||The policy can be terminated before the completion of the term and a surrender benefit is payable. The guaranteed surrender value is 90% of the total contribution minus the mortality charges, policy administration charges and the benefits paid. Whereas the special surrender value is as much as the policy account value minus the applicable surrender charges and any market value adjustment. The higher amount, either the guaranteed surrender value or the special surrender value, will be provided.|
|Range of policies||Apart from group plans, many individual plans, micro insurance plans, pension plans, unit plans, etc. are available.|
|Phone services||In case of any queries or assistance, customers can contact the nearest customer service. There is also an SMS service that can be utilised to seek help regarding the policies.|
LIC renders the best customer service, and has branches scattered throughout the country to make their services more accessible. The claim settlement ratio helps people decide which insurer to choose and LIC has always maintained an excellent claim settlement ratio over the years. The claim settlement ratio for the year 2016-17 was 98.31% and 100% of the complaints were resolved in the same year. Hence it is no surprise that the company won 29 awards in the year 2015-16 and 27 awards in the year 2016-17.