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| Home> For
Groups > Kotak Superannuation Grouplan |
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Superannuation |
| In this policy,
the investment risk in the investment portfolio
is borne by the policyholder. |
| Overview
of superannuation |
| In today’s times,
when the prospect of outliving retirement savings
is larger than ever, few employees take the time
to plan their long-term financial goals or have
the discipline to systematically save for their
retirement years. As an employer of choice, you
can help your employees tremendously by assisting
in their retirement planning and in turn increase
employee retention. The solution is in Kotak Life
Insurance’s Superannuation Grouplan. |
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 How
does the Kotak Superannuation Group plan work? |
| The Kotak Superannuation
Grouplan (KSGP) is a uniquely flexible product
that addresses the needs of both the employers
and the employees. Under this group life insurance
plan, individual employee accounts are invested
in one of the many investment portfolios on a unitized
basis as per each employee’s choice. Parameters
such as eligibility criteria for fund membership,
vesting guidelines, contribution rates, transfer
rules and voluntary contributions are all designed
as per each employer’s unique needs. |
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| How
will Kotak Superannuation Grouplan help me as an
employer? |
| You know that your employees
are your most valuable assets. By helping to provide
for retirement, through Kotak Superannuation Grouplan,
you help increase employee retention and motivation.
Moreover: |
- According to the Finance Act 2006, annual
contributions made by an approved superannuation
trust up to Rs. 1,00,000 per employee can be
claimed as deductible business expenses under
section 115 WB (1C) read with section 115 WC
(1)(b) of the Income Tax Act, 1961. Any contribution
beyond the prescribed limit will qualify for
Fringe Benefit Tax.
- Income earned on investments
by an approved superannuation trust is tax-exempt
under section 10 (25) (iii) of the Income Tax
Act, 1961.
- The amount of deduction available
on initial as well as ordinary annual contribution
to an approved superannuation fund shall not
exceed 27% (including the contribution to Provident
Fund) of the employee’s annual basic salary
for each year of his service under section 36
(1)(iv) of the Income Tax Act, 1961.
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| How
does Kotak Superannuation Grouplan help my employees? |
| Group insurance plans
like KSGP give your employees unparalleled flexibility
and peace of mind. |
- Any employee contribution towards an approved
superannuation fund qualifies for tax deduction
under section 80C of the Income Tax Act, 1961.
- At the time of retirement or death, the
employee or the employee’s nominee (as the case
may be) can commute one-third of the accumulated
fund amount as a tax-free lump sum under section
10 (10A) and section 10 (13) of the Income
Tax Act, 1961. The balance amount must be used
to buy annuity from either Kotak Life Insurance
or any life insurer approved by IRDA.
- At
the time of withdrawal from service, the employee
has the option of either transferring his/
her superannuation account to his/ her new
employer (if the latter provides for that)
or commute one-third of the accumulated fund
and buy an annuity from the balance amount
from either Kotak Life Insurance or any life
insurer approved by IRDA
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| How
do I know if my company is eligible for KSGP? |
- Minimum group size for superannuation:
10 members
- Minimum entry age: As specified
in the Trust Rules or18 years, whichever is
higher.
- Maximum cover age: As specified in
the Trust Rules, or 65 years, whichever is
lower.
- Minimum term: One year. This is an
annually renewable plan.
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| What
investment options do I have? |
| There are a number of
investment options available to your employees
depending on their financial goals and risk appetite.
Kotak Life Insurance offers a variety of investment
funds to help your employees achieve the best investment
performance of their individual needs. We offer
the following investment options: |
| Investment
Option |
Objective |
Risk
- Return Profile |
Equity |
Debt
(including Money Market Instruments) |
| Kotak Group
Aggressive Growth Fund |
Aims
for a high level of capital growth by holding
a significant portion in equities.
May experience high levels of shorter term
volatility (downside risk) |
Aggressive |
60%-100% |
0%-40% |
| Kotak Group
Growth Fund |
40%-80% |
20%-60% |
| Kotak Group
Balanced Fund |
Aims
for moderate growth by holding a diversified
mix of equities and fixed interest instruments.
May also be susceptible to moderate levels
of shorter-term volatility (downside risk) |
Moderate |
30%-60% |
40%-70% |
| Kotak
Group Dynamic Floor Fund |
Aims
to provide stable long term inflation beating
growth over the medium to longer term and defend
capital against short term capital shocks.
Is likely to out-perform traditional balanced
or equity funds during sideways or falling
markets and shadow the rising equity markets |
Cautious |
0%-60% |
40%-100% |
| Kotak Group
Bond Fund |
Returns
will be in line with those of fixed interest
instruments, and may provide little protection
against unexpected inflation increases
Will preserve capital and minimize downside
risk, with investment in debt and government
instruments. |
Conservative |
- |
100% |
| Kotak Group
Floating Rate Fund |
- |
100% |
| Kotak Group
Gilt Fund |
- |
100% |
| Kotak Group
Money Market Fund |
Will
protect capital and not have downside risks |
Secure |
- |
100% |
| Kotak Fixed
Maturity Plan Fund * |
Will
generate stable returns through investments
in a suitable mix of debt and money market
instruments |
Conservative |
- |
100% |
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| Note: The aggregate
exposure across the portfolios selected by the
clients to equities should not exceed 60% of the
total market value and to cash (money market instruments)
should not exceed 40% except Kotak Group Money
Market Fund. |
| * Kotak Fixed Maturity
Plan Fund: This fund is a close-ended scheme with
specified maturity length of between 3 and 120
months, and is defined by a maturity date. Each
series will have an initial subscription period,
where at the end of the series’ initial subscription
period, the fund series will close to new business.
On the maturity date, each investor scheme’s
holdings in the respective fund series will be
switched to a fund as selected by the policyholder. |
| This is a multiple fund
series scheme where versions of the fund defined
by different maturity dates are open for subscription
at the same time. |
 Investment
Management Philosophy
Kotak’s group investment philosophy works
on the principles of transparency, flexibility
and well-defined investment portfolios |
 Calculation
of Net Asset Value (NAV) =
(Market value of investment held by the fund +/-
the expenses incurred in the purchase/sale of assets
+ value of current assets + any accrued income
net of fund management charges – value of
current liabilities- provisions) divided by (number
of units existing at the valuation date) |
| The appropriation price
shall apply in a situation when the company is
required to purchase the assets to allocate the
units at the valuation date. This shall be the
amount of money that the company should put into
the fund in respect of each unit it allocates in
order to preserve the interests of the existing
policyholders. |
| The expropriation price
shall apply in a situation when the company is
required to sell assets to redeem the units at
the valuation date. This shall be the amount of
money that the company should take out of the fund
in respect of each unit it cancels in order to
preserve the interests of the continuing policyholders |
| The appropriation or
expropriation price (whichever prevails on the
date concerned) will be used with respect to portfolio
valuations for policyholders in addition to terms
for full or partial surrenders, maturity and death
settlement options. |
| The risk profile of
different asset classes is as under |
| Type of
Asset |
Risk Profile |
| Govt. & Govt. approved securities |
Low |
| Corporate Bonds |
Medium |
| Infrastructure as defined by IRDA |
Medium |
| Money Market and Other Liquid assets |
Very Low |
| Listed Equities |
High |
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 Premium
Allocation Charges
Premium allocation charge would be 0.5% of contribution
for this group life insurance product. This is
a percentage of premiums appropriated towards charges
from the premium received. The balance known as
allocation rate constitutes that part of premium
which is utilized to purchase (investment) units
for the policy. |
 Fund
Management Charges
This is a charge levied as a percentage of the
value of assets and will be appropriated by adjusting
the NAV. Each of the investment options operates
in a totally transparent manner, with the NAV of
each fund posted on our website daily, along with
benchmarks for each fund. Investment management
charges vary depending on the fund size and the
investment option chosen as indicated by the employer.
These charges can be altered at the sole discretion
of the company, subject to a maximum of 2% of assets
under management, with prior approval from IRDA. |
 Surrender
Charges
This is a charge levied on the unit fund at the
time of surrender of contract. In case the policyholder
wants to terminate/surrender this group life insurance
policy, an exit fee is applicable depending upon
the duration of the fund. In case a policy is terminated
within one year, the company will charge 2% of
the fund value as surrender charge while the charge
would be 1% of the fund value if the policy is
terminated within two years. No exit charge will
be charged if the termination occurs after two
years^. |
 Switching
Charges
Kotak Life Insurance's KSGP doesn’t levy
any fee for switching between fund options^. Thus
your employees have the ability to reallocate their
portfolios an unlimited number of times without
incurring additional charges. But the company reserves
the right to impose a switching charge subject
to prior approval from IRDA. |
| ^except in case of Kotak
Fixed Maturity Plan Fund, where an early exit penalty
is charged as a percentage of fund value. The applicable
charges are as follows: |
| Time elapsed since commencement
of Kotak Fixed Maturity Plan |
<=25% of total maturity
period |
>25% and <=50% of
total maturity period |
>50% and <=75% of
total maturity period |
>75% and <100% of
total maturity period |
| Charge |
2.5% |
1.5% |
0.75% |
0.5% |
|
 Non-forfeiture
Benefits
If the employer/ trustees stop paying the contributions,
the existing monies will continue to remain invested
in the respective funds. The usual fund management
charges will continue to be deducted. The policyholder
will have an opportunity to revive the contract
within two years from the due date of the last
unpaid contribution. If any member retires/ dies/
withdraws during this period, the cash value of
the units held on his behalf will become payable
in the manner provided for in the rules of the
scheme. |
| The employer may pay
the current as well as the arrears of contributions
at any time within two years from the due date
of the last unpaid contribution. The monies paid
will be applied to purchase units in the funds
chosen by the employer/ trustees at the NAVs as
per the scheme rules. No handling charges will
apply. At the end of the allowed period of revival
-- i.e. two years -- if the contract is not revived,
the contract shall be terminated (by giving prior
notice), paying the surrender value. |
 Termination
of this Group Life Insurance Policy
The policy and/ or the benefit in respect of any
member can be terminated at the sole discretion
of the company, if the value of the units is not
sufficient to meet any charges, taxes or expenses,
or if it is found that the member data provided
was inaccurate or there was any material suppression
of member data within the provisions of Section
45 of Insurance Act, 1938. |
 Free
Look Period
The policyholder is offered a 15-day free look
period for this group life insurance product, from
the date of receipt of this policy. During this
period, the policyholder may choose to reconsider
his/ her decision to hold this policy, and may
return it. If the policyholder chooses to return
the policy, he/ she will then be entitled to a
refund of the premium paid after adjustments for
expenses for medical examination, stamp duty and
proportionate risk premium for the period of cover. |
 Insurance
Ombudsman
The company will endeavor to promptly and effectively
address policyholders’ grievances with regards
to group life insurance. However, in case the policyholder
is not satisfied with the response of the company,
he/she may also approach the Insurance Ombudsman
located in his/ her region. Details of the offices
of the Ombudsman across the country are made available
on the website of the company at www.kotaklifeinsurance.com
and will also be made available to the policyholder
on request. |
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| Risk
Factors |
- Unit-linked life insurance products are
different from traditional insurance products
and are subject to risk factors.
- The premium
paid in unit-linked life insurance policies
are subject to investment risks associated
with capital markets. The NAVs of the units
may go up or down based on the performance
of the fund and factors influencing the capital
market, and the insured is responsible for
his/ her decisions.
- Kotak Mahindra Old Mutual
Life Insurance Ltd is only the name of the
company and Kotak Superannuation Grouplan is
only the name of the unit-linked life insurance
contract and does not in any way indicate the
quality of the contract, its future prospects
or returns.
- Please know the associated risks
and the applicable charges, from your insurance
agent or the intermediary or policy document
of the insurer.
- The various funds offered
under this contract are the names of the funds
and do not in any way indicate the quality
of these plans, their future prospects and
returns.
- The past performance of other plans
of the company is not necessarily indicative
of the future performance of any of these funds.
- All benefits payable under the policy are
subject to change in tax laws and other financial
enactments, in force from time to time. Please
consult your tax advisor for details
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| If you do not have a
group superannuation plan at the moment, you can
start one today with Kotak Life Insurance! If you
have an existing group superannuation plan, you
can transfer your fund to Kotak Life Insurance.
We will help you with all the necessary paperwork
and guide you through the process to make it hassle-free. |
Kotak
Life assures you of a cost effective fund management
for you
and your employees’ benefit in
a transparent and simplistic
manner without any
hidden costs! |
| Service tax and education
cess will be levied on all applicable charges as
per the prevailing tax laws and/or any other laws.
In case of any statutory levies, cess, duties etc.,
as may be levied by the Government of India from
time to time, the company reserves its right to
recover such statutory charges from the policyholder(s)
either by increasing the premium and / or by reducing
the benefits payable under the plan. |
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| Section
41 of the Insurance Act, 1938 states |
1) No person shall allow
or offer to allow, either directly or indirectly,
as an inducement to any person to take or renew or
continue an insurance in respect of any kind of risk
relating to lives or property in India, any rebate
of the whole or part of the commission payable or
any rebate of the premium shown on the policy, nor
shall any person taking out or renewing or continuing
a policy accept any rebate, except such rebate as
may be allowed in accordance with the published prospectuses
or tables of the insurer:
Provided that acceptance by an insurance agent of
commission in connection with a policy of life insurance
taken out by himself on his own life shall not be
deemed to be acceptance of a rebate of premium within
the meaning of this sub section if at the time of
such acceptance the insurance agent satisfies the
prescribed conditions establishing that he is a bona
fide insurance agent employed by the insurer.
(2) Any person making default in complying with the
provisions of this section shall be punishable with
fine which may extend to five hundred rupees |
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| Section
45 of the Insurance Act, 1938 states |
No policy of life insurance
effected before the commencement of this Act shall
after the expiry of two years from the date of commencement
of this Act and no policy of life insurance effected
after the coming into force of this Act shall, after
the expiry of two years from the date on which it
was effected be called in question by an insurer
on the ground that statement made in the proposal
or in any report of a medical officer, or referee,
or friend of the insured, or in any other document
leading to the issue of the policy, was inaccurate
or false, unless the insurer shows that such statement
was on a material matter or suppressed facts which
it was material to disclose and that it was fraudulently
made by the policy holder and that the policy holder
knew at the time of making it that the statement
was false or that it suppressed facts which it was
material to disclose:
Provided that nothing in this section shall prevent
the insurer from calling for proof of age at any
time if he is entitled to do so, and no policy shall
be deemed to be called in question merely because
the terms of the policy are adjusted on subsequent
proof that the age of the life insured was incorrectly
stated in the proposal. |
| Tax benefits for group
insurance plans are subject to change in tax laws.
You are advised to consult your tax advisor for details. |
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| Disclaimers: |
- Unit Linked Life Insurance products
are different from the traditional insurance
products and are subject to the risk factors.
- The
premium paid in Unit Linked Life Insurance policies
are subject to investment risks associated with
capital markets and the NAVs of the units may
go up or down based on the performance of fund
and factors influencing the capital market and
the insured is responsible for his/her decisions.
- Kotak
Mahindra Old Mutual Life Insurance Ltd is only
the name of the Insurance Company and Kotak Superannuation
Group Plan is only the name of the unit linked
life insurance contract and does not in any way
indicate the quality of the contract, its future
prospects or returns. The various funds offered
under this contract are the names of the funds
and do not in any way indicate the quality of
these plans, their future prospects and returns.
- Please
know the associated risks and the applicable
charges, from your Insurance agent or the Intermediary
or policy document of the insurer.
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| Kotak Superannuation
Grouplan – UIN: 107L016V02 Ref No: KLI/09-10/E-WEB/093 |
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Kotak Mahindra
Old Mutual Life Insurance Ltd. Regn. No.:107, Regd.
Office: 9th floor, Godrej Coliseum, Behind Everard
Nagar, Sion (East), Mumbai – 400 022.
Website: www.kotaklifeinsurance.com
Email: lifeexpert@kotak.com
SMS KLIFE to 5676788.
Toll Free No:1800 209 8800 |
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| Insurance is
the subject matter of the solicitation. This is a
non-participating unit-linked group plan. This document
is not a contract of insurance and must be read in
conjunction with the Policy Document. Hard copy of
the information will be provided on request. |
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