To keep your employees satisfied and secure, there is a growing need to provide them with improved benefits that translate to long term value additions for them.

The Kotak Term Grouplan is a good way to show your employees you care. Not only does it provide a life cover for your employees, it also takes care of their family’s needs and protects them against life’s uncertainties.

What does the Kotak Term Grouplan offer?
 The plan provides life cover for a group of employees, by paying a lump sum benefit to the beneficiary on the death of an employee. The plan is offered on a yearly renewable basis and is non-participating. It is secured via a single policy on the lives of all the members of the Group.

How does it benefit me as an Employer?

  • Provide welfare benefits and a sense of security to the employees and their families
  • Simple administrative procedures
  • High degree of customization and flexibility
  • Option to choose from flat or graded cover, multiple of salary or banded to length of service
  • Provision for additional benefit riders at nominal costs
  • The premium paid by the employer is deductible as business expense under section 37 of the Income Tax Act, 1961
  • Contributions other than statutorily required under any law in force may be liable for Fringe Benefit Tax1

How does it benefit my Employees?

  • Insurance protection at a relatively low cost.
  • Hassle free and convenient process.
  • Cover is available 24 hours a day, 7 days a week, anywhere in the world.
  • Conversion option- Option to convert to an individual policy from Kotak Life Insurance.
  • All claim payments may be considered as non-taxable receipts and could consequently be considered as tax exempt under Section 10(10D) of the Income Tax Act, 1961.
  • If the employee pays part or whole of the premium, he/she may be able to claim a deduction under Section 80(C) of the Income Tax Act, 1961.
What are the eligibility requirements?
The plan offers cover on a compulsory basis to all active, permanent employees of the participating group, subject to the following age limits:
  • Minimum age at entry will be 18 years
  • No employee will be covered above age 65 or normal retirement date, whichever is earlier
  • The minimum number of eligible employees in a group is 50. There is no maximum limit
  • Minimum sum assured to be Rs. 20,000 per member

What is the frequency of premium payment?
Premiums are paid annually in advance. However, we also offer the opportunity to the Employer to make the payment monthly in advance.

When will the cover terminate?
The cover will cease on the earliest of:

  • Date of withdrawal from Employer’s service.
  • Normal retirement date or an earlier age specified for the group by the Employer.
  • Date of discontinuance of the policy.

What Value-adds can you opt for?
 You can avail any of the following value-adds for a nominal additional premium:

  1. Accidental Death Benefit:
    In the event of death of an employee as a result of an accident during the term of this benefit, the beneficiary would receive an additional lump sum benefit, which is over and above the basic sum assured. The maximum benefit that can be availed of is equal to the basic sum assured.

  2. Accidental Disability Benefit:
    If during the term of this benefit, an employee is totally and permanently disabled as a result of an accident, the employee would receive a lump-sum benefit above the basic sum assured. The maximum benefit allowed will be the lower of 3 times the annual salary or the Basic Sum Assured or Rs. 10,00,000.

  3. Accidental Dismemberment Benefit:
    Accidental Dismemberment compensates the employee for injury, which results in the complete or partial loss of a limb, or loss of use of eyesight or hearing due to accidental causes. The benefit is paid out as a lump sum. The maximum benefit allowed will be the lower of 3 times the annual salary or the Basic Sum Assured or Rs. 10,00,000.

  4. Accidental Death, Disability and Dismemberment Benefit:
    We also offer the three accident value-adds as a single package, wherein the maximum benefit payable under the whole package will be the lower of 3 times the annual salary or the Basic Sum Assured or Rs. 10,00,000.

  5. Critical Illness Benefit:
    If the employee suffers from one of the twelve critical illnesses covered and this is proved to the satisfaction of Kotak Life Insurance, the critical illness benefit will become payable as a lump sum. After payment, this benefit will cease and fall away. The maximum benefit allowed will be the lower of 2 times the annual salary or the Basic Sum Assured or Rs. 10,00,000.

    The 12 critical illnesses covered under this plan are: Heart Attack, Cancer, Stroke, Coronary Artery By-pass Graft Surgery, Kidney Failure, Major Organ Transplant, Paralysis, Loss of Limbs, Aorta Surgery, Major Burns, Heart Valve Surgery, and Blindness.

  6. Family Benefit:
    Under the Family Benefit value add, life cover is provided not only for the insured employee but also for the spouse and the three eldest children either between the ages of 1 and 21 years or of any age if they are unable to maintain themselves by reason of a disability as defined in “The Persons with Disabilities (Equal Opportunity, Protection of Rights and Full Participation) Act, 1995”. The maximum benefit that can be availed of is Rs. 50,000 as a lump-sum.

KOTAK TERM GROUPLAN in lieu of EDLI
The Kotak Term Grouplan can also be offered in lieu of Employee’s Deposit Linked Insurance (EDLI). Since the benefits from this plan have been demonstrated to be superior to those offered under the EDLI Scheme of the Employees’ Provident Fund Organization (EPFO), this plan has been approved by the EPFO.

In case the employer opts for Kotak Term Grouplan in lieu of EDLI he will be entitled for grant of relaxation/exemption from the provisions of the EDLI Scheme, 1976. Kotak Term Grouplan in lieu of EDLI confers better benefits in the form of enhanced cover for the employees regardless of the balances in their Provident Fund Accounts and a higher sum assured, with no additional obligation on the employer in terms of the contribution required towards securing this plan for the employees.

What are the salient features of this plan?

  • Minimum eligible cover amount is Rs. 62,000.
  • It is a pure term plan and the benefits are payable to the nominee(s) of the member in the event of his unfortunate death.
  • This will be applicable only to employer-employee groups.
  • The maximum entry age is 79yrs.

KOTAK TERM GROUPLAN WITH EXPERIENCE SHARING
What does the Kotak Term Grouplan with Experience Sharing offer?
The plan provides life cover for a group of employees, by paying a lump sum benefit to the beneficiary on the death of an employee.

The plan is offered on a yearly renewable basis and is non-participating. It is secured via a single policy on the lives of all the employees of the group. At the end of the term, experience refund is offered based on the actual claims incurred by that particular group. This means that the employer will reap the benefit of good experience. For further details, please contact our dedicated Relationship Managers.

1 Please consult your tax advisor for any tax implications.