The Cover

Group Term Insurance is a highly convenient yearly risk insurance product which pays a Face Amount to the employees in the event of any cause of death. A Group Term insurance plan is not only cheaper than individual coverage but also waives the requirement of medical tests in most cases. In addition to add-on accident & disability riders, Group Term plans also offer an option to convert to an individual policy.

  • The amount of life cover can be customized based on requirements like a uniform cover for all members or a grade wise cover.
  • This cover is available 24*7 anywhere in the world.
  • This Scheme can help retention of employees by providing welfare benefits to employees and their families.
  • In addition to hassle free administration and efficient claims administration, Group Term insurance also allows for uniform business expense to cover fluctuating mortality risk. It also offers the possibility of premium reduction over a period of time with profit sharing arrangement.

Group Term Insurance in lieu of EDLI

  • While a Group Term insurance scheme is voluntary, Employees Deposit Linked Insurance Scheme is statutory for all employers to whom the EPF & Miscellaneous Provision Act, 1952 applies.
  • Under the Scheme with the PF office, 0.5% of the wages which is subject to a monthly cap of INR 6,500 + 0.01% administrative charges is contributed by the employer for each member. The life cover available is equal to the average balance accumulated in the PF account during the preceding 12 months subject to a maximum limit of INR 60,000.
  • With a life insurance company, the employer contributes insurance premium required to effect life insurance based on notional PF balance on a graded basis or uniform basis against which a minimum uniform life cover of INR 62,000 up to a maximum of INR250,000 is provided. Effectively, for the same cost, by outsourcing the scheme to an insurance company, the members are provided more than double the life cover.
  • The cover provided is available without any medical evidence. Better deliverables are ensured by way of pre-defined TAT’s & Service Level Agreement.