Group Gratuity Insurance

  • Buy Group Gratuity Insurance policy in India

Let us understand first what is Gratuity and is gratuity taxable? Gratuity  payment  is  made  by  the  employer  as  a  mark  of  recognition of  the  service  completed  by  the employee  to  the  Company. Gratuity  is  a  statutory  benefit  to  be  provided  to  an  employee  as  per  the Payment  of  Gratuity  Act,  1972.  It  is  a  lump  sum  amount  paid  out  to  an  employee,  upon  his  exit  from employment and fulfilling the criteria prescribed in the gratuity Act.

These statutory payments to employees create a gratuity liability for you as an employer. As an employer, one of your paramount concerns will be availability of sufficient funds to meet your company’s obligation for these gratuity payments. Insurance Manager offers its Group Gratuity insurance to enable employers to meet their gratuity liability in a very simple and efficient manner. Group Gratuity Plan also ensures confirms highest level of safety for the total amount and stability in future contributions. The  purpose  of  a  gratuity  insurance  is  to  provide  the  employees  a lump  sum  benefit  called  gratuity,  after they  have  put  in  the  minimum  required  years  of  service  as  specified  in  the  Group Gratuity  Scheme  Rules,  on their exit from service due to:

  • Retirement.
  • Permanent total disablement whilst in service.
  • Death whilst in service due to accident or natural causes.
  • Resignation/Termination from service.
  • However, the minimum required year of services shall not apply in case of death and disablement of the employee due to accident or natural causes.

Group Gratuity Benefits

Better returns > Higher Corpus > Reduce liability

  • Multiple Investment Options – Choice of multiple funds with a flexible investment pattern. Choice of more than 5 fund options
  • Switching Option – While you have chosen a fund option, you have the flexibility of switching between our various funds at any time. Switching between the various funds is allowed depending upon your requirements. We allow unlimited switches free of cost every year.
  • Contribution Redirection – The contributions can be redirected for investments into fund/s of your choice and need not adhere to the initial investment pattern. We allow unlimited redirection requests free of cost.
  • Transparency – Portfolio Disclosure of the funds is done on a Quarterly basis. This enables you to achieve better fund management. Transparency in charges, investments & returns –periodic statements, internet access & NAV based returns
  • Tax Benefit -Tax benefits are as per the provisions of the Income Tax Act, 1961. Tax laws are subject to change.
  • Expert Management-In house fund management team –experience in fund management
  • Savings in manpower cost as Gratuity Funds Management/ paperwork is done by the Insurer
  • Benefit of ‘Rupee cost averaging’ on account of periodic inflow of gratuity contributions into the funds
  • Life insurance coverage for employees
  • Apart from Gratuity benefit, employees are entitled to life insurance coverage that will be payable to their families in the unfortunate event of their death.
  • Market-linked returns and long-term investment growth
  • Investing your gratuity fund in a unit-linked investment portfolio exposes you to a variety of market instruments. A gratuity plan like this enables you to reward your talented and loyal employees without putting a financial stress on your core business in the long run.

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