Why is ICICI Pru Group Gratuity Plan special?
This plan helps you save money and build a kitty that helps you pay the amount of gratuity to your employees. At the same time, you can get returns earned on this kitty.
What is Gratuity?
Gratuity is a compulsory benefit to be provided to employees as per the Gratuity Act, 1972. It is a lump sum amount paid out to employees, once they are no longer a part of the company. An employee is eligible for payment of gratuity only if he or she fulfills the conditions specified under the Gratuity Act.
How does this plan work?
As an employer, you can choose to invest a certain amount of money in order to meet your future gratuity liability. The amount set aside by you is invested in a range of equity and debt funds to provide returns over a long term. The kitty created under this plan is then used to make claim payments for gratuity when employees exit.
We, at ICICI Prudential Life Insurance understand that service is of utmost importance to maintain a long-term relationship with you. As a result, we aim to ensure your convenience and ease while managing your policy.
What are the services provided under this plan?
We have a dedicated service team that provides services under this plan. This team will appoint a Relationship Manager for your policy. Your Relationship Manager will help you with all your policy related requirements.
We offer a complete and competitive range of investment product options. These include both Unit Linked insurance plans and non-linked plans thereby, allowing you to choose a plan as per your needs.
What are the different options available for managing my Group policy?
For managing your group Gratuity, you can choose from the following products:
Group Unit Linked Employee Benefit Plan – This is a Unit Linked investment plan that offers various fund options of equity and debt
Group Suraksha Plus – This is a Non-participating Endowment plan which provides a minimum floor rate* and additional interest rate every quarter
*Minimum floor rate is the minimum percentage of premium that is guaranteed to the employee on their retirement savings at the time of purchase.
As an employer, annual contribution is allowed as expenditure/deduction in computing taxable income. However, maximum contribution cannot exceed 8.33% of an employee's salary each year.
Gratuity received by the employee is tax-free up to the limit specified and subject to conditions under Section 10(10).*
The tax benefits are as per Income Tax Act, 1961 and Income Tax Rules, 1962. Please consult your Legal/ Tax expert for details. ICICI Prudential Life Insurance Company Limited shall not be held responsible in any manner in case you do not get the above stated tax benefits. Please note that the prevailing and applicable tax laws shall be final, conclusive and binding on both the parties.