Hey there! Let me tell you about LIC’s New Group Gratuity Cash Accumulation Plan. It’s a simple insurance plan that helps bosses take care of the gratuity money they need to give their workers. This plan makes it easy for bosses to save up the money over time, so they have enough to pay their workers when they retire or leave the job.
With LIC’s New Group Gratuity Cash Accumulation, you can put in money regularly to build up the funds. You get to choose how much and how often you want to contribute, so it fits your company’s needs and budget. This way, you’ll have a nice chunk of money ready when it’s time to give your workers their gratuity.
What is New Group Gratuity Cash Accumulation?
Okay, so LIC’s New Group Gratuity Cash Accumulation is like a big piggy bank for bosses. They put money in it regularly to save up for the gratuity they need to give their workers later on. This way, when a worker retires or leaves the job, the boss has enough money in the piggy bank to pay them what they’re owed.
Here’s how it works: the boss has one big account for the plan. Every time they put money in, it gets added to this account. And when it’s time to pay a worker their gratuity, the money comes out of this big pool of savings. Plus, the plan also gives some extra money to the worker’s family if something bad happens to them while they’re still working.
Key Features
- Guaranteed Interest Rate: The money in the piggy bank always grows by at least a little bit each year, so it gets bigger over time.
- Life Cover Benefit: If something sad happens and a worker passes away while still working, their family gets some extra money to help them.
- Gratuity Funding: This plan helps bosses make sure they have enough money to give workers their gratuity when the time comes.
- Surrender Benefit: If the boss needs to, they can stop the plan early by letting LIC know a few months ahead of time.
Eligibility Criteria
To get LIC’s New Group Gratuity Cash Accumulation plan, the boss and workers need to meet some rules. Workers have to be at least 18 years old, but not older than 75. And the boss needs to have at least 10 workers to sign up for the plan, but there’s no limit on how many workers can be part of it.
| Rules | Lowest | Highest |
|---|---|---|
| Age of Workers | 18 years | 75 years |
| Number of Workers | 10 workers | No limit |
| Money for Each Worker | Rs.5,000 | As per plan rules |
| Plan Length | One year, but can be renewed | |
Contributions and Benefits
Let me explain how the boss puts money into the LIC’s New Group Gratuity Cash Accumulation plan. They decide how much to put in based on the rules of their company’s gratuity scheme. They make sure to put in enough money so that when a worker is supposed to get their gratuity, there’s enough saved up to pay them.
Now, if something really sad happens and a worker passes away while still working, two things happen with this plan. First, the worker’s family gets some money from the life insurance part. Second, the family also gets the gratuity money that the worker had earned so far. And when a worker retires or leaves the job, they get the gratuity money they’ve earned, according to the scheme rules.
LIC keeps a special account for each boss who uses this plan. Every time the boss puts money in, it goes into this account. Then, when it’s time to pay a worker their gratuity, the money comes out of this account. This way, it’s easy for the boss to manage the gratuity money they need to give their workers.
Additional Features
The LIC’s New Group Gratuity Cash Accumulation plan has a special rule for when a lot of workers leave in one year. If more than 25% of the money in the account would be needed to pay all these workers, LIC makes a small adjustment to the amount each worker gets. This helps make sure the account stays healthy and fair for everyone.
If the boss needs to stop the plan for some reason, they can do that too. They just have to tell LIC three months ahead of time. When they stop the plan, the boss gets some money back, based on the plan’s rules. This way, the boss can make changes if their business needs change.
The boss might also get some help with taxes by using this LIC plan. But it’s always a good idea for them to talk to a tax expert to understand exactly how it works for their specific business.
Exclusions
The good news is that there aren’t any special rules about what’s not covered in LIC’s New Group Gratuity Cash Accumulation plan. As long as the boss follows the rules they’ve set for their gratuity scheme, the workers will get the money they’re supposed to. This keeps things simple and clear for everyone involved.
Frequently Asked Questions
What is the minimum and maximum group size covered under this policy?
Okay, so for the LIC’s New Group Gratuity Cash Accumulation plan, the boss needs to have at least 10 workers to start the plan. But the good news is, there’s no limit on how many workers can be part of the plan. So whether the boss has a small business or a really big one, this plan can work for them.
Is there a surrender benefit under this policy?
Yes, there is! If the boss needs to stop the LIC’s New Group Gratuity Cash Accumulation plan for some reason, they can do that. They just have to tell LIC three months before they want to stop. When they stop the plan, the boss gets some money back. LIC looks at the plan’s rules to figure out how much money the boss gets back.
What happens in case of bulk exits?
If a lot of workers leave the company in one year, and the amount of money needed to pay their gratuity is more than 25% of the money in the plan account, LIC calls this a “bulk exit.” When this happens, LIC might adjust the amount of money each worker gets. This is to make sure the plan stays fair for everyone and the account stays healthy.
What is the life cover benefit payable on death of a member?
If a worker passes away while they’re still working, the LIC’s New Group Gratuity Cash Accumulation plan helps take care of their family. The family gets some money from the life insurance part of the plan. They also get the gratuity money that the worker had earned so far, according to the rules of the plan. This extra money can really help the family during a tough time.