Why is ICICI Pru Group Leave Encashment Plan special?
This plan helps you save money and build a pool that will pay the leave encashment amount to your employees.
What is Leave Encashment?
Leave encashment is a benefit offered by you to your employees, in which an employee can accumulate his or her leaves over a period of time. The accumulated leaves are paid in lump sum to your employees once they are no longer a part of your organization. In the absence of the employee, this amount is given to his or her loved ones. This payment is made as per the guidelines set by you.
How does this plan work?
Once you choose to set aside money for the ICICI Pru Group Leave Encashment plan, we invest this amount in various instruments of debt and equity. This plan gives you the opportunity to earn potentially better returns and helps you build a leave encashment pool. The wealth created by the plan can be used to make leave encashment payment claimed by the employees on 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 plan, you can choose from the following products:
Group Unit Linked Employee Benefit Plan – This is a Unit Linked Insurance 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 an 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.
For the Employer: The cash equivalent of the Leave Encashment Benefit as and when paid by the employer is deductible from his income under section 37(1) subject to conditions mentioned in section 43B (f) of the Income Tax Act, 1961.
For the Employee: Leave encashment received by the employee at the time of retirement is tax free subject to the conditions and upto the limit as specified under Sec 10 (10AA).
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.