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DEPT:-PPI B.COM (HONS.)-VOC.

SEM-III

SUBMITTED IN PARTIAL FULLFILMENT FOR THE
AWARD OF DEGREE IN B.COM (HONS.)-VOC. IN
PPI.
BY:-
NAME:-PRITAM KUMAR
ROLL NO.:-1128

ST. XAVIER COLLEGE
AN AUTONOMOUS COLLEGE OF RU, RANCHI

GUIDE CERTIFICATE

TO WHOM SO EVER IT MAY
CONCERN

“GROUP INSURANCE & INDUSTRIAL LIFE
INSURANCE OF LIC ANB SBI LIFE
INSURANCE” has been completed by
PRITAM KUMAR Roll No.-1128;B.Com
(Hons.) Vocational in PPI-III under my
supervision.

Mr.
Sidharth Haldhar
(FACULTY
& PROJECT GUIDE)

I PRITAM KUMAR STUDENT OF ST. XAVIER
COLLEGE,RANCHI OF SEM-III OF INSURANCE
HONS.,ROLL NO:-1128 GOT A CHANCE TO DO A
PROJECT REPORT ON “GROUP INSURANCE AND
INDUSTRIAL LIFE INSURANCE OF LIC AND SBI
LIFE INSURANCE”.FIRST OF ALL I WOULD LIKE TO
THANKS OUR FACULTY MEMBERS Dr. GAUTAM
RUDRA(HOD),DEPT. PPI & MR. SIDDARTH
HALDHAR(FACULTY & PROJECT GUIDE) AND MR.
A.K. SINGH(BRANCH MANAGER OF LIC) 7 MY
FAMILY MEMBERS WHO HAD HELPED ME IN ALL
THE POSSIBLE WAYS & MY FAMILY MEMBERS WHO
HAD HELPED ME IN ALL THE POSSIBLE WAYS &
WITHOUT THEIR THIS PROJECT WORK WOULD NOT
HAVE SUCCESSFUL & I WOULD LIKE TO THANKS
ALMIGHTY GOD WHO HAD PROVIDED ME WITH
HEALTHY MIND & BODY.

CONTENT
PAGE NO???????????

➢ OBJECTIVE OF THE PROJECT.
➢ RESEARCH METHODOLOGY.
➢ COMPANY ORGANISATION PROFILE.
➢ INTRODUCTION TO GROUP INSURANCE
AND INDUSTRIAL LIFE ASSURANCE.
➢ AN INTRODUCTION LIC AND SBI LIFE
PRODUCT’S.
➢ COMARISION BETWEEN GROUP
INSURANCE AND INDUSTRIAL
INSURANCE CONCLUSION.
➢ BIBLIOGRAPHY.
OBJECTIVE OF THE PRODUCTS

➢ TO KNOW DETAIL ABOUT GROUP INSURANCE PLAN AND INDUSTRIAL
PLAN

➢ TO KNOW WHO GROUP INS. PLAN AND INDUSTRIAL PLANS ARE
OFFERED.

➢ TO KNOW ABOUT THE BENEFITS GIVEN UNDER THE GROUP INS. AND
INDUSTRIAL INS. PLAN
➢ TO COMPARATIVE ANALYSIS OF GROUP INS. AND INDUSTRIAL
INSURANCE PLAN.

RESEARCH METHODOLOGY

DATA COLLECTION
Primary Data: The primary data has been
collected through interview, , and personal visit
to the branch.

Secondary Data:The has been collected through,
the company website, and book Issued by the
IRDA.
ABOUT LIFE INSURANCE CORPORATION OF INDIA

Life insurance Corporation of India founded in 1956 is the largest life insurance company in
India owned solely by the Government of India. Headquartered in Mumbai, which is considered
the financial capital of India, LIC presently has 7 Zonal Offices and 100 Divisional Offices
situated all around the country. In addition to an even distribution of 2048 branches
located in different towns and cities of India. The Life Insurance Companies Act
and Provident Fund Act both passed in 1912 provided regulatory mechanisms to
the Life Insurance Industry in India for the first time. After undergoing several
other such reforms in the following decades and nearly a decade after India
achieved independence, the Parliament of India passed the Life Insurance of
India Act on 19 the June, 1956 following which the Life Insurance Corporation (LIC)
of India on 1 sty September of the same year. The Company began its operations
with 5 Zonal Offices, 33 Divisional Offices and 212 Branch Offices. Existing as
a towering insurance company for over 50 years, LIC has acquired almost
monopoly power in the solicitation and sale of life insurance policies in India. In
addition to the summary regarding the present stature provided at the beginning,
LIC has extended its activities in 12 countries other than India with the objective of
catering to the insurance needs of Non Resident Indians. The enforcement of New
Economic Reforms in 1991 coupled with the formation of Insurance Regulatory
and Development Authority Act (IRDA) of 2000 (which started issuing licenses
to private life insurers) has diluted the monopolistic attitude commanded by LIC.
The only insurance company belonging to the public sector now has to compete
with several other corporate entities of its kind which often are heavyweight Indian
as well as Multinational Life Insurance Brands in themselves.
ABOUT SBI LIFE INSURANCE

SBI Life Insurance Company Limited is a joint venture between the State Bank of India and
BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs 2000
cores and a Paid-up capital of Rs 1000 Cores. SBI owns 74% of the total capital and BNP
Paribas Assurance the remaining 26%.

State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate
Banks, SBI Group has the unrivalled strength of over 14,500 branches across the country,
arguably the largest in the world.

BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas - Euro
Zone’s leading Bank. BNP Paribas, part of the world’s top 6 group of banks by market value and
a European leader in global banking and financial services, is one of the oldest foreign banks
with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life
insurance company in France, and a worldwide leader in Creditor insurance products offering
protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly
through the banc assurance and partnership model.

SBI Life has a unique multi-distribution model encompassing Banc assurance, Agency and
Group Corporate.

SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products
along with its numerous banking product packages such as housing loans and personal loans.
SBI’s access to over 100 million accounts across the country provides a vibrant base for
insurance penetration across every region and economic strata in the country ensuring true
financial inclusion.
WHAT IS GROUP INSURANCE?

Group insurance implies granting of insurance over to a homogenous group of individuals under
a single policy called a "master policy " the party with whom the insurer enter into a contract
may be a employer or labor union or voluntary association , not formed mainly for the purpose of
obtaining insurance protection

The term on which the insurance protection is granted depend upon the appraisal of risk in
respect off the group as whole and not individual risk .the contractual relationship of the insurer
is with the group policy holder .the individual member of the group has no direct contractual
relationship with the insurer ,.the master policy the benefits and term and condition under which
the specified policy are payable to the individual member through the group policy holder under
the agreed contingencies.

The profits under this Group Life Insurance normally depend on the lost wages of the
employees. As there are lots of subscribers or contributors in this Group Life Insurance this
provide service coverage at a very less cost for each participant.

FEATURES

1. Master policy is issued in corpora ting the contract between the insurance company and a
legal entity like employer, trustees, trade union etc., defining the group of life to covered,
benefit, contribution and terms and condition on which contract is entered into.

2. The amount of covered is determined on the basis of a fixed formula and its is not
decided by the individual forming the group depending upon the number the member
and the average sum assured, a ‘free cover’ or’ no evidence’ limit is determined and the
insurance on the life of the member up to their limit is granted on the basis of the basis of
simple rules of insurability like ‘actively- at- work’ i.e., reporting for duty on the date of
reporting of insurance and sick leave record verification.
3. The group should be such that their is steady stream of new entrants from year to year so
that group continuing nature and not likely to lapse as a result of depletion of members.

4. Mass administration and simple underwriting practices result in low cost insurance for
the group.

5. The premium rates for a group scheme are adjusting periodically on the basis of
experiences this feature is known as experience rating for medium and big size group,
sharing of profit on the basis actual experience is a nominal feature.

6. Group insurance schemes are in nature of social security the state recognize this factor by
granting of tax advantages to the contracting parties.

ELIGIBLITY CRITRIA:

• Group should have been formed and maintained for purposes other than obtaining
insurance cover.
➢ There should be steady stream of new entrants into the group. The membership of
the group should normally be between age of 18 and 60 years
➢ The group should have minimum 25 members.
➢ The individual of the group should be the member of a registered company
formed for the purpose other than taking insurance cover.

ADVANTAGES TO THE EMPLOYER:
1. The premium payable by the employer is usually less than the total contribution being
paid by the employer; particularly when the salary level is high and average age of the
group is low.

2. Settlement of claim is quicker; LIC requires only the death certificate and the Claim
Form from the employer.

3. Premium paid by the employer is treated as normal business expenses for Income-Tax
purpose.
ADVANTAGES TO THE EMPLOYEE:

Each employee is covered for a sum assured ranging between 5,000 to 2, 00,000 depending upon
the current salary and service put in from day one irrespective of the actual balance in the
Provident Fund. Alternatively every employee/ worker can be covered for a uniform sum assured
which will be decided depending upon the group size.

ACCIDENT BENEFIT:

Double accident benefit can be allowed to the extent of the Sum Assured for an extra Premium
maintains a reasonable standard of living after retirement. Pension may be paid for life or for a
guaranteed period and thereafter for life or for life with return of corpus. Pension can be arrange
to be paid during the joint life the employees and his wife and to the survivor after the death of
one of them.

Types of group insurance schemes:

1. Group Term Insurance Schemes:
Group Term Insurance Schemes are launched to give life insurance protection to a group of
people. The administration is also done under group basis and thus results in low cost. The life
insurance cover is also provided to all the group members with certain simple insurability
conditions. But there are no specific conditions on the medical evidence

The insurance cover is provided only on death and do not provide any maturity value at the end
of the term under these Group Term Insurance Schemes. Currently the plan is offered only less
than One Year Renewable Group term assurance plan. Thus, premium is charged each year
on the date of the Annual Renewal and this charge depends on the change in the size and the
distribution of the age in the age group

There are also many add-ons such as the double accident advantage, the Critical illness
advantage, and the Disability advantage. The basic eligibility condition under this Group Term
Insurance Schemes is the person should be a member under the Provident Fund Scheme for the
employer.
Under this scheme, the premium amount can be paid by the employer as a whole or else by
means of the Nodal Agency. Also, this scheme allows for the contributory that means, the
member can also contribute to pay the premium amount.

2. Group Gratuity Scheme:

Group Gratuity Scheme which is also called as Cash Accumulation Scheme is a plan which
is launched under the Payment of Gratuity Act to provide a convenient mode to fund the
statutory obligation of an employer. It helps the employer to carry their obligation to a
higher level.

According to The Payment of Gratuity Act, 1972, the employer has to pay about 15 days
salary which is equivalent to 15/26 of a month's wages, to its each and every employee for
every successful year's service, if they exit after their continuous five years of service on any
reason, with the maximum limit of up to 3.5 lacks.

If the employer desires, even higher benefits can also be provided. When liability arises, as
per the LIC Group Gratuity Scheme gratuity can be paid to the employees, which could be
claimed under the P & L account as the deductible expense.

3. Group Super Annuation Scheme:
Group Super Annotation Scheme is a plan launched according to which, certain fixed
percentage of salary of each of the member is contributed by the employer. Insurance
company collects these contributions and thus uses the accumulated amount in order to
provide different benefits.

Benefits available under this Group Super Annuation Scheme:
When any of the members retires, then pension is provided to those members by means of using
the corpus which is called contributions added with the interest. In the event of death, the
pension is payable on the life of the beneficiary. Based on the type of the pension payment
scheme chosen by the beneficiary, the Corpus is used for the payment of pension. This benefit

thus obtained is free from tax. Apart from the pension provided, a lump sum amount is payable
on the event of death provided the employer taken a group insurance scheme along with this LIC
Group Super Annuation Scheme.
In case of withdrawing from the scheme, the member is eligible to get an equitable interest
which is transferred to new employer of the superannuation scheme. Or else an immediate or
deferred position can also be chosen.

What are the pension options that are provided along with this scheme?
The pension options that are provided under this Group Super Annotation Scheme are as follows.
Provides a life pension that stop at the event of death and along with a return of capital and group
pension terminal bonus on the occurrence of death. This life pension thus provided is guaranteed
for about 5 or 10 or 15 or 20 years and there after for the entire life.

WHAT ISINDUSTRIAL LIFE INSURANCE?

Industrial life insurance originated in united kingdom in 19th century is attempt to provides
insurance cover to industrial worker and there families thus even to day policies are of very small
amount the specialty is the arrangement for collection for premium which are collected by agents
on monthly or weekly basis insurance is sold in premium units rather than in sum assured units
the insurance is generally offered to all the member of family from birth to age 65-70yrs.generlly
the business under the non medical basis.
FEATURES:

1. This policy is specially made to provide insurance cover to daily wages
workers and their families’ members to protect them from any uncertainties
which may take place in future.
2. The premium rate is very low as a result maturity benefits is also low i.e.,
between Rs 50,000-1, 00,000 because earning capacity is very low.
3. The specialty of this policy is the company agent collects the premium
monthly or weekly basis on the behalf of insurer.
4. The insurance is generally provided to the entire family member from birth to
age 65-70 and the policy is provided under non-medical basis.
5. Industrial life insurance generally are of two types:

1. Whole life policy or

2. Ordinary endowment plans.

ABOUT LIC PRODUCT

JEEVAN MANGAL PLAN
(MICRO INSURANCE PRODUCT)

1. Introduction:

LIC’s Jeevan Mangal is a term assurance plan with return of premiums on maturity,
where you may pay the premiums either in lump sum or regularly at Yearly, Half Yearly,
Quarterly, Monthly, fortnightly or weekly intervals over the term of the policy.

2. Eligibility Conditions and Other Restrictions:
Minimum age at entry: 18 years (completed)
Maximum age at entry: 60 years (nearest birthday)
Maximum age at maturity: 70 years (nearest birthday)
Term: 10 to 15 years for regular premium.
10 years for single premium.
Minimum Instalment Premium: Rs 15/-
Minimum Sum Assured: Rs. 10,000/-
Maximum Sum Assured: Rs. 50,000/-
(Sum Assured shall be in multiples of Rs. 1,000/-)

3. Mode of Premium Payment:
The modes of premium payment allowable are Yearly, Half Yearly, Quarterly, Monthly
including SSS, fortnightly, weekly and Single Premium. (Single premium is allowed for 10 year
term only.)

4. Benefits:
a. Death Benefit: On death during the term of the policy the Sum Assured under the basic plan is
payable, provided the policy is kept in force.

b. Maturity Benefit: On surviving to the date of maturity, an amount equal to the total amount of
premium paid during the term of the contract excluding the accident benefit premium and all
extra premium, if any, is payable ,provided the policy is kept in force

2. Optional Rider:
a. Accidental Benefit Rider: On death arising as a result of accident during the term of the policy,
an additional amount, equal to Accident Benefit Rider Sum Assured is payable.

On total and permanent disability arising due to accident (within 180 days from the date of
accident), the Accident Benefit will be payable in monthly installments spread over 10 years. If
the policy becomes a claim either by way of death or maturity before the expiry of the said
period of 10 years, the disability benefit installments which have not fallen due will be paid
along with the claim.

The disability due to accident should be total and such that the Life Assured is unable to carry
out any work to earn the living. Following disabilities due to accidents are covered:
a) irrevocable loss of the entire sight of both eyes, or
b) amputation of both hands at or above the wrists, or
c) amputation of both feet at or above ankles, or
d) amputation of one hand at or above the wrist and one foot at or above the ankle

The future premiums shall be waived after the disability claim is admitted.

LIC's JeevansMangal

Age (yrs.) 35
Terms years 10
sum Assured 30000
Annual Premium 1324.50

Benefit
Total Benefit payable on
End payable on
Premium survival/maturity
of death during
paid till end the year during the year
year
of year
Guaranteed Guaranteed
1 1324.50 30000 0
2 2649.00 30000 0
3 3973.50 30000 0
4 5298.00 30000 0
5 6622.50 30000 0
6 7947.00 30000 0
7 9271.50 30000 0
8 10596.00 30000 0
9 11920.50 30000 0
10 13245.00 30000 13245.00

About SbiLife-products

SBI Life - Suraksha Plus
SBI Life – Suraksha Plus a pure term non participating product for all types of Groups
such as Employer - Employee Groups, Credit Card / Banks / Mutual Fund Customer and any
group of people sharing a common view, at a very affordable premium wherein SBI Life aims
at Protecting your members and their family under all circumstances.

Key Features:

➢ Multiple premium payment mode options available
You can pay a Single Premium or pay regularly yearly, half yearly, quarterly or
Monthly
• Free Cover Limit facility available
• Cover spouse and /dependant parent(s) of your member
• Insured have the choice to select any of the below options* in addition to basic life
cover* of your member
• Option 1 : Accidental Death Cover for the Group Member
• Option 2: Basic Life Cover +Accidental Death Cover for Spouse/Dependent
Parent(s) of the Group Member.

• Option 3: Accidental Death cover for Spouse and / Dependent parent(s)
• Surrender facility available for Single Premium mode.

Eligibility Criteria:

Entry Age (as on last
Group Size
birthday)
• Min : 18 Years • Min.: 50 members

• Max : 69 Years • Max : No Limit
Minimum
Premium Payment Option
Premium :
• Single Premium OR • RP : Rs. 1,000/- Per

• Regular Premium Scheme

○ Yearly • SP : Rs. 5,000/- Per
Scheme
○ Half Yearly

○ Quarterly

○ Monthly

Benefits:

• Maturity Benefits : No maturity benefits payable as it is a Pure term Product

• Death Benefit :
For a Group Member:

In case of death due to any reasons, the Basic Sum Assured is payable.

• If option 1 is chosen, in case of death due to accident, an additional accidental sum
assured will also be payable.
If option 2 is chosen:

• In case of death due to any reasons, the basic sum assured for spouse/ dependent
parent(s) is payable.

• in case of death due to accident, an additional accidental sum assured for spouse /
dependent parent(s) will also be payable.

• If option 3 is chosen, in case of death due to accident, the accidental sum
assured will be payable for the cover of spouse / dependent
parent(s).

Grace Period:

A 30 days grace period is available for all modes except monthly which is 15 days.

SBI Life - Sampoorn Suraksha
Introduction:

SBI Life - Sampoorn Suraksha is a yearly renewable group term insurance plan offering
excellent protection at affordable rates. This plan is available for different formal and informal
groups such as Employer-Employee groups, Borrower / Depositor Groups, Professional /
Affinity Groups etc.

Key Features:

• Provides financial support to the family members / dependents in unfortunate
event of death of the group member

• Flexible options:
• Convertibility
• Spouse cover benefit
• Death benefit settlement
• Terminal illness benefit
• Range of riders available for comprehensive coverage
➢ SBI Life - Group Ride
Accidental Death
Accidental Partial Permanent Disability
Accidental Total Permanent Disability
Accident and Sickness Total Permanent Disability

Accelerated- Extended Critical Illness
Additional - Extended Critical Illness
Accelerated - Core Critical Illness
Additional - Core Critical Illness

SBI Life - Group Savings Protection Products

SBI Life - Nidhi Raksha is a unique Plan which will help protect and grow your
customer’s savings. This Plan is an excellent tool to ensure that your customer’s savings
will accumulate as originally planned, even in the unfortunate event of his/her demise.
The powerful protection under this Plan will thus lend a competitive edge to your savings
products.

*Key Features:

• Offered to deposit holders of the master policyholder (bank/financial institution)
• Cover is available for a term of 1 to 10 years, subject to a maximum cease age
of 70 years (age as on last birthday).
• Sum Assured starting from as little as Rs.5, 000/-, with no maximum limit.

• Cost effective insurance ideally suited to protect planned savings
• Nomination facility available for each member
• Simple joining process
• Attractive Rebates

SBI Life – Cap Assure Gratuity Scheme:
It is a Non-Participating yearly renewable traditional Group Gratuity Scheme. Under this
scheme, the contributions paid continue to accumulate on traditional platform of
investments and at the end of the financial year; an investment income earned on your
contributions is credited to your gratuity fund account.

Key Features:
• Capital Guarantee on Fund Under Management

➢ Unique Pooling Fund Advantage: Get higher returns based on aggregated value of
all your non-Linked funds

• Additional Funding up to 3% to absorb exit penalty charged by the previous
insurer
• Flexibility to transfer partially your fund from this scheme to our Unit Linked
‘SBI Life Golden Gratuity’ scheme!
• No Suicide Exclusion clause for basic life cover
• Additional benefit for your employee through Group Accidental Death and
Permanent Disability rider
Benefits:
• On Retirement/ Resignation/ Termination: Higher of accrued gratuity benefits
payable as per scheme rules or the Gratuity Act.
• On occurrence of Total Permanent Disability (TPD) : Higher of accrued
gratuity benefits payable as per scheme rules or the Gratuity Act + Rider Sum
Assured, if any, in case of TPD due to accident, will be payable to the employee.
• On an unfortunate Death: Higher of accrued gratuity benefits payable as per
scheme rules or the Gratuity Act + Basic Sum Assured as opted for by the master
policy holder + Rider Sum Assured, if any, in case of death due to accident
• However, maximum benefit under SBI Life - Accidental Death & Total
Permanent Disability rider will be limited to lower of basic
sum assured or Rs. 5 Lacks.
Grace Period:
A period of 30 days is given to withdrawal from the policy.

Revival Period:

Life Cover can be revived within two years from the first due but unpaid premium,
subject to payment of risk premium for the future.

Tax Benefits*:

For Employer:
• The initial and Annual contributions made through an approved Gratuity trust can
be claimed as business expenditure as per the provisions under section 36 (1) (v)
of the Income Tax Act, 1961 subject to maximum limit of 8.33% of annual salary
in respect of each member.
• Income of investments is exempt from tax under section 10(25) (IV) of the Act.
For Employee:

• Gratuity benefits are tax free up to Rs. 3, 50,000 u/s 10(10) in the hands of
employee.
• Gratuity payment may be bettered by employer – over and above Rs. 3, 50,000
taxable. (However, in this case the tax free limit as per above will not change.)
• The contribution made by the employer is not included in the value of taxable
perquisites in the hands of the employee.
• Any death benefit under the Group Term Insurance is tax-exempt under section
10 (10D) of the Income Tax Act, 1961
SBI Life - Superannuation schemes:

1. Defined Benefit Scheme: The amount of pension and the other benefits are pre-defined in
the scheme rules. Contributions required to fund past service as well for the future service
liability of the member are determined by Actuarial valuation.

2. Defined Contribution Scheme:

The amount of contribution is pre-defined in the Scheme Rules and an Actuarial valuation may
be performed, if required.

Key Features:

• Capital Guarantee on Fund Under Management
• Unique Pooling Fund Advantage: Get higher returns based on aggregated value
of all your non-Linked funds
• Additional Funding up to 3% to absorb exit penalty charged by the previous
insurer
• No Suicide Exclusion clause for basic life cover
• Additional benefit for your employee through our SBI Life - Group Accidental
Death and Permanent Disability Rider

Benefits:

• On Retirement/ Resignation/ Termination: The employee receives either the
defined
Pension or its equivalent in Purchase Price as per the Scheme Rules
• On occurrence of Total Permanent Disability: The member receives
the accumulated amount
To his/her credit + Rider Sum Assured, if any, in case of TPD is due to an
accident
• On an unfortunate Death: The employee receives either defined Pension amount or
its equivalent in Purchase Price as per the Scheme Rules, + Basic Sum Assured as
opted for by the master policy holder + Rider Sum Assured, if any, in case death is
due to accident.
However, maximum benefit under SBI Life - Group Accident Death & Total Permanent
Disability (AD&TPD) rider will be limited to lower of basic sum assured or Rs. 5 Lacks.

• On Retirement/ Resignation/ Termination:
➢ The accumulated amount may be used to purchase an immediate annuity from SBI
Life or any other insurer.
➢ The employee may also choose to transfer his accumulated fund to the approved
superannuation fund of the new employer.
➢ The funds may be allowed to accumulate till superannuation of the employee. In case
of unfortunate event of death during this period, the accumulated amount will be
utilized to provide pension to the legal nominee.

• On an unfortunate Death: The accumulated amount to the credit of the member +
the Basic
Sum assured as opted for by the master policy holder + Rider Sum Assured, if any, in case death
due to accident. However, maximum benefit under SBI Life - Accidental Death & Total
Permanent Disability (AD&TPD) rider will be limited to lower of basic sum assured or Rs. 5
Lacks.

Grace Period:
A grace period of 30 days will be allowed for payment of life cover premium.
However, if death occurs during the grace period, the death claim shall become payable subject
to the receipt of the due and unpaid risk premium or renewal risk premium for the entire group
from the Master Policyholder. In case of non-receipt of the risk/rider premium within a grace
period of 30 days, the life cover/rider would lapse. However, the accumulation of the fund will
be continued without life cover/rider and the superannuation claims will be settled subject to the
availability of funds.
Revival Period:
Life Cover can be revived within two years from the first due but unpaid premium, subject to
payment of risk premium for the future. Revival will be treated as per underwriting rules at that
time
Tax Benefits *: The risk premium paid towards the life cover shall be treated as business
expenses.

Benefit to Employers –
• The Employer will have a better chance of retaining the service of efficient and
experienced staff. Better employee morale will lead to grater efficiency and
productivity.
• Annual Contribution by the employer to an approved superannuation fund in respect
of any particular employee will be treated as expenditure to the company, However if
the contribution exceeds Rs 1, 00,000/- FBT is payable. (In accordance with Income
Tax Rules, 87 & 88
• Any income received by the trustees on behalf of an approved superannuation fund is
exempted (Section 10 (25) (iii) of the Income Tax Act, 1961).

Benefits to Employees –
• payment of contribution towards an approved superannuation fund is eligible for
deduction, subject to a maximum of Rs. 1,00,000 (Section 80 C of the Income Tax
Act, 1961)
• Commuted value i.e. commuted part of the pension (maximum up to 1/3 of the
pension in case where gratuity is received or 1/2 of the pension incase gratuity is not
received), is tax free on death or retirement or attainment of vesting age.
• Employer’s contribution will not be treated as perks in the hands of the employee.(as
per provision 17(2)(v))
• Uncommuted Pension will be treated as salaried income and taxed accordingly.
SBI Life - Dhanrashi

With changing times, large numbers of NGOs, Social Welfare Groups including Government
aided agencies as well as Corporate have evinced interest to float new schemes that will cost a
little but still bring well-being to their group members as well as some security for their lives.

SBI Life - Dhanrashi is a traditional non participating Group Savings Linked Insurance scheme.
This scheme is applicable for both employer-employee and non-employer employee groups.

Key Features:
• Convenient Savings cum Protection Scheme with:
• Attractive returns on savings with twin benefits
• Protection at low cost with no medical examination.
• Hassle free joining process with no entry charges.

Benefits:

Maturity benefit

• Accumulated Fund Value for the Group Member is payable as per the scheme rules.

Death Benefit

• Sum Assured plus Accumulated Fund Value for the Group Member is payable as per the
scheme rules.
Returns on Investment:

➢ Savings component will earn annually compounded returns in two ways:
• A minimum Basic Interest rate that is declared in advance for each financial year.
1. An Additional Investment Return, which will be declared at the end of each
financial year, based on earnings on the fund and fund size.
2. Higher the fund size, higher will be the investment return.

Option to change the Sum Assured:
At the beginning of each policy year, the Master Policyholder may request for a change
in sum assured, within the permissible sum assured limits.

Grace Period Provision:

A grace period of 30 days will be allowed for payment of contribution for Regular mode
(15 days for Monthly mode).

Revival Period:

2 years revival period will be available, from the first unpaid contributation.

Surrender Facility:

Master Policyholder can surrender the Master Policy from 2nd Policy year onwards
subject to conditions applicable.

Tax Benefits*:

• Members’ total contribution, including service tax is entitled for income-tax rebate under
Sec 80C of the Income Tax Act.
• The entire claim amount, including interest earned, payable on Maturity or on death is
free from income-tax (U/s 10(10D) of income tax Act.
• The life cover premium paid by the employer towards Life Cover is treated as business
expenses (U/s 37 (1)) of income tax Act.

SBI Life – Kalyan ULIPTM
(Unit link insurance policy)

SBI Life – Kalyan ulip is a non-participating, unit linked group insurance scheme. It is truly
unique with its variety of features that benefit not only the Master Policyholder but also to each
Group Member. This plan is a one-stop solution to all your fund management needs and can be
extended to both employer-employee and non-employer-employee groups. You get the
flexibility of paying in your contribution at any time during the year according to scheme rules.

What does SBI Life – Kalyan ULIPTM offer?
A Group ULIP platform to manage your Group funded needs as below

• Defined Benefit (DB) scheme
to manage your Gratuity, Leave Encashment, Superannuation DB or any such similar
schemes.
• Defined Contribution (DC) scheme
to manage your Superannuation DC or any such similar schemes.

• Hybrid Scheme – because life is never black and white!
It is a unique underpin scheme to fit into any offerings in the market…invest
your contributions as DC with DB floor or vice-versa.

Salient Features of SBI Life – Kalyan ULIPTM:
• One of the lowest fund management charges in the market
our highest charge is probably the lowest for many!

• Loyalty Additions, based on Fund Size!
We know how loyalty should be rewarded. Higher the fund size higher will be the
Loyalty Additions.

• Inbuilt Life Cover We not just manage your funds but also care for lives of your
members. This plan comes with an automatic Life Cover of Rs. 1000/- for each member,
at no additional cost.
COMPARISION BETWEEN GROUP INSURANCE

AND

INDUSTRIAL LIFE ASSURANCE
GOUP INSURANCE INDUSTRIAL LIFE
ASSURANCE

Group insurance is given to a complete group Industrial life assurance is a given to a single
and the minimum number of the group must be individual and their family member, etc.
25.

A master policy is given which contain term A single policy is given which contain term
and condition of the policy, benefits, maturity and condition of the policy, benefits, maturity
fund insurer. fund .
Premium to be paid is on yearly or monthly Premium to be paid is on monthly, weekly and
basis. daily basis .

Premium to paid is decided by the insurer, Premium to be paid is decided by the insured
there is no direct relation between insured and ,there is direct contact between the insured and
the insurer . insurer insured is free to chosen PPT.
Maturity benefits given under this policy above Maturity benefits given under this policy is
1, 00, 000. between 5,0000 to 1,00,000.
CONCLUSION:

• Group insurance and industrial insurance are two different insurance policies with
different features.
• Group insurance is provided for member of a group who are related to a legal entity and
the group should be made for other than taking insurance cover while industrial insurance
is offered to daily wages workers and their families’ members to protect them from any
uncertainties which may take place in future.
• Under group insurance a master policy is issued which covered benefit’s term and
condition related to the policies whether in industrial insurance a single policy is given.
• Eligibility criteria for group insurance and industrial insurance:
○ Under group insurance the group should be legal entity, and formed for the
purpose other than taking insurance protection while in industrial insurance there
is no need for individual related with any legal entity.
○ Under group insurance the minimum number of group should be 25 but in
industrial insurance policies is given to a single individual.
• The group age criteria for both the policies are as same 18- 65 yrs.

• Under group insurance the premium of policies, maturity fund, sum assured are
calculated by the insurance company on simple fixed formula but in industrial life
insurance premium to be paid, maturity fund, sum assured of the policies is chosen by the
insured.
BIBLIOGRAPHY:

1. Websites used:
• www.lic.co.in
• www.sbi life insurance.com

1.Brochures of the company.
LIC and SBI Life insurance
3. Book used:
• M.N .Mishra- Principles & practice of
Insurance
• IC-33
• IC-23