FAQ >>Gratuity FAQs
 
Part A: Organizational Information

Part B : General Information
Part C: Product Type Queries
Part D: Fund Management and Fund Performance
Part E: Capital & Returns Guarantee Details
Part F: Fund Management Charges
Part G: Service and Systems
Part H: Product Related Queries
SBI Life - CapAssure Gratuity Scheme
 

Part A: Organizational Information
 
1.Name of the Organization
SBI Life Insurance. Co. Ltd
 
2. Registered, Corporate Office & Address for communication
SBI Life Insurance Co. Ltd., "Natraj" M.V. Road & Western Express Highway Junction,
Andheri (East), Mumbai - 400 069

Part B : General Information
 
1.Name of the Indian Partner
State Bank of India
 
2.Name of the Foreign Partner
BNP Paribas Assurance
 
3.Joint Venture Stake Holding
74% SBI & 26% BNP Paribas Assurance.
 
4.Board of Directors
Mr. O. P. Bhatt (Chairman)
Mr. M.N.Rao (MD & CEO)
Mr. Eric Lombard (Director)
Mr. R. Sitaram (Director)
Mr. Y. Vijayanand (Director)
Mr. Gerard Binet (Director)
Mr. L. Ravi Sankar (Director)
Mr. Rajshree Pathy (Director)
Mr. Chitra Ramkrishna (Director)
 
5.Corporate Governance Rating (Indian partner)
State Bank of India maintains highest level of
Corporate Governance. No Public Corporate
Governance rating available.
 
6.Credit Rating of the Indian Partner & the Rating Agency
CRISIL (long term - AAA)
CRISIL (short term P1+)
CARE (long term AAA)
 
7.Credit Rating of the Foreign Partner & the Rating Agency
MOODYS (long term Aa2)
FITCH (long term AA)
FITCH (short term F1+)
S&P (long term AA)
S&P (short term A1+)
 
8.Is the Indian parent company part of an integrated financial services Group?
(Meaning, are all the Companies in the Group focused on financial services) Yes
 
9. SBI Life's Key Milestones in FY 07 - 08
 a.


b.

c.

d.

e.

Rated as the 'The Most Trusted Private Life Insurer' according to a survey conducted by Brand Equity in association with AC Nielsen ORG-MARG and the Economic Times Intelligence Bureau.

Became first life insurer in India to receive the highest financial rating 'AAA' from CRISIL, (the country's best known rating agency) in 2007.

Ranked amongst global top five life insurance companies in the number of MDRT members.

Received ISO 9001: 2000 certification for superior claim settlement process.

Became the only domestic life insurer to achieve CMMI Level 3 certification for IT processes and software development capabilities.
 
10.
SBI Life's Highlights for FY 2007 - 2008
 
 a.

b.

c.

d.

e.

f.
 
New Business APE : Rs. 3,481 Cr (+93%)

New Business Premium: Rs. 4,792 Cr (+ 87%)

Total Premium: Rs. 5,622 Cr (+92%)

Net Profit:` Rs. 34 Cr (+ 800%)

Total AUM: Rs. 10,493 Cr

Solvency ratio 3.3% as against 1.5 IRDA requirement 
11.Total AUM for the Indian group (parent)
Rs. 12 Lac Crore
 
12.Authorised Capital Base in Rs. Crs.
Rs. 2,000 Cr
 
13.Insurance License issued
29th March 2001
 
14. Inception Date of Group Gratuity in India
September '03
 
15.Inception Date of Group Leave Encashment in India
Year 2006.
 
16.Inception Date of Group Superannuation in India
Year 2006
 
17.
Net worth
Rs. 1,006 Crores (as on Mar 31st, 2008)
 

Part C: Product Type Queries:
 
1.Current Products Offered under Group Schemes
SBI Life - Golden Gratuity (ULIP)
SBI Life - CapAssure Group Gratuity
SBI Life - CapAssure Leave Encashment
SBI Life - CapAssure Superannuation
SBI Life - Sampoorn Suraksha (Term Cover)
SBI Life - Super Suraksha (EDLI)
SBI Life - Swarna Jeevan (Immediate Annuity)
 

Part D: Fund Management and Fund Performance
 
1.Fund Management Structure
Investment Committee
Investment Sub-Committee
CFO
Fund Manager (Equity/Debt) (2 fund managers)
Front Office - Dealers (3 dealers)
Research (4 analysts)
Middle Office (2 members)
2. Investment Committee responsible for Fund Management (Name & Designation)
Chairman
Mr. M.N. Rao
Managing Director & CEO

Members:
Mr. L. Ravi Sankar, Director
Mrs. Bharati Rao, Director
Mr. Sanjeev Pujary, Appointed Actuary
Mr. Abhijeet Gulanikar, Chief Financial Officer

3.A brief description of the investment function listing out the credentials of the core investment team

DESCRIPTION OF OUR INVESTMENT FUNCTION
 1.
2.
3.
4.
5.
The Insurance product portfolio is designed such that it provides returns in the immediate future and also over the product horizon
Decision on exposures to Equities and Debt is taken by the Investment Sub Committee that meets on a monthly basis
The Research team submits reports and analysis to Fund Manager, CFO, AA and MD for approvals
The Fund Managers manage exposures to debt and equity based on the broad economic and market outlook & valuations
Broad market benchmarks such as the BSE-100 and Nifty are used to calculate fund Alpha
 
Debt
Typical Investments Instruments - primarily Government Securities and top quality PSU/Corporate Debt instruments
Prime Strategy Drivers - Duration Management, Spread Analysis, Limited Credit Risk
Strategy Factors - Inflation rate, Interest rate, Liquidity, Policy changes, Rating changes etc.

Equity
Investment Universe Approved by Board
Dividend Track Record
Net Worth Criteria
Pre-defined Sector, Company & Group exposure norms
Good management track record & growth prospects
Average daily market cap criteria
Key Investment Criteria
 
 




Sustainable Business Model
Company Fundamentals
Earnings Outlook
Valuations
Emphasis on Large Caps
Return on Investment
 
DEBT
Mr. Chandrajit Ranavde
Experience: 13 yrs (Treasury and Debt Fund Management, etc) - Allahabad Bank, Bank of Baroda
Qualifications: C.A., ICWA, Associate (Insurance Institute)

Mr. Nirmal Gandhi: 6 years of experience
Prior Experience: IDBI Bank, Tolani Shipping, GE Countrywide
Education Qualifications: C.A., C.F.A., C.A.I.I.B.

Mr. Pankaj Khetan: 3 years of experience
Prior Experience: SBI Life Insurance
Education Qualifications: C.A., C.S.

EQUITY
Fund Management
Mr. Ramesh Elukurthy
Prior Experience: 12 yrs (Research, Dealing, Project Finance, Fund Management, etc), Life Insurance Corporation of India
Qualifications: C.A.

Dealing
Mr. Rixon Cusher: 3 years of experience
Prior Experience: SBI Life, Accenture, Khandelwal Jain
Education Qualifications: C.A.

Equity Research
Mr. Surender Singh Khalsa: 7 years of experience in Capital Markets.
Prior Experience: Anand Rathi, Mangal Keshav, Rednerus Holdings, Datapro Infotech and Syntel.
Education Qualifications: MBA, ICFAI Business School, Mumbai in Banking and Finance

Mr. Falgun Joshipura: 6 years of experience
Prior Experience: JP Morgan Global Research, SBI Capital Markets Ltd and Cholamandalam Securities.
Education Qualifications: MBA, Jamnalal Bajaj, Mumbai and a Bachelor in Chemical Engineering from UICT, Mumbai.

Mr. Neil Mascarenhas: 3 years of experience
Prior Experience: JPMorgan GSC - Derivatives and IFEJ
Education Qualifications: MBA, NMIMS, Mumbai, M.A.Economics, B.A. Eco-Stats, St. Xavier's College, Mumbai.

Mr. Divesh Kumar: 2 years of experience
Prior Experience: SBI Life Insurance.
Education Qualifications: MBA, K.J.Somaiya, Mumbai
 
4.Research Partner used for Investment Advisory services
In house Research Department and Research of SBI Bank which is India's largest Banking conglomerate
 
5.Special Investment Tools
Bloomberg, Reuters, Newswire, CMIE Prowess, Economic Intelligence Service, Top Broker Research Reports and Analyst Tools
 

Part E: Capital & Returns Guarantee Details
 
1.
Do you provide any Capital & Returns guarantee in SBI Life Group products?
Yes, we provide Capital* Guarantee on SBI Life - CapAssure Superannuation, SBI Life - CapAssure Gratuity and SBI Life CapAssure Leave Encashment Schemes.

All aggregated contributions done towards these schemes are guaranteed. At the end of each Financial year, SBI life will declare a positive rate of returns. However, the rate of returns is not guaranteed.

* Capital Guarantee shall mean the amounts paid towards funding liability plus the interest declared and credited at the end of each financial year less claims paid
 
2.
If yes how do the charges or costs differ from your non-capital guarantee schemes?
All traditional non Unit Linked products have to give a guarantee on Capital*. There is no extra cost for providing this guarantee.
 
3.
Do you provide any guarantees on your Group Unit Linked products?
Unit Linked products offer better flexibility in term of investment allocation. The Master Policyholder can allocate premium according to his risk appetite. Through switching and redirection facilities, this investment allocation may be changed to for maximizing returns taking into account the prevailing market conditions
Against expectation of higher long term returns, the master policyholder supports the market risks.
As per IRDA regulation, we do not offer any guarantees on our Group ULIP products.
 
4.
Does the Capital, under SBI Life - CapAssure Schemes, stay in force if our scheme with you exits/terminates completely?
In case, you decide, for any reason to end your CapAssure Master Policy with SBI Life, the capital guarantee will end at the same time of liquidation of assets as we will not have any funds to manage on your behalf. However, till complete surrender/termination, the capital guarantee cover remains for the remaining balance amount in your master policy.
 
5.
Does the Capital, Guarantee under SBI Life - CapAssure Schemes, stay in force in the event of mass exits of members from the scheme?
(Please provide complete details pertaining to the numbers/percentage of total members exiting the scheme for the Capital Guarantee to be cancelled on our scheme)
Capital guarantee will remain valid irrespective of mass exits of members As long as, these 2 conditions are met
 
Minimum Fund size criteria: Rs. 50,000/- and above
Minimum Group size: 10 members.
 If anyone of these 2 conditions are not met there is an automatic termination of the Master Policy consequently resulting in the withdrawal of the Capital Guarantee .
 
6.
Does the Capital Guarantee, under SBI Life - CapAssure Schemes, stay in force if the members voluntarily leave the scheme?
As explained in query 5, Capital Guarantee remains in force for the Master Policy holder on the residual fund amount post settlement of the claim. For those who are voluntarily leaving the scheme, they benefit of the capital Guarantee till their withdrawal from the scheme.
 
7.
Is the Capital Guarantee, under SBI Life - CapAssure Schemes, applicable only on normal retirement and death and/or disability of the member?
The Capital Guarantee is applicable for all fund amount under a CapAssure scheme, irrespective of the mode of exit. However, in case of surrender, applicable Surrender charges, if any, will be deducted from the fund amount.
 
8.
Please provide full details of all conditions, including any of the above, attached to keep the Capital Guarantee in force, under SBI Life - CapAssure Schemes.
Fund Value in the Master Policyholder's account shall not fall below Rs. 50,000/- and at any given time minimum number of members covered shall be 10.
 
9.
Is there any freedom to switch from capital guarantee fund to non capital guarantee fund and vice- versa? If yes at what additional cost.
Currently, Under SBI Life - CapAssure Gratuity Scheme there is a flexibility to shift part of your funds from 2nd policy year onwards to the Group Gratuity Unit Linked product of SBI Life (SBI Life - Golden Gratuity). In such case, you will benefit from lower applicable surrender charges, if any, at 50% instead of 100% subject to the following rules:.
 

Only partial transfer not less than Rs. 1.5 lakhs and not more than 50% of funds managed under the      same master policy.
Only one partial transfer per financial year is allowed.
Written request with notice period not less than 1 month.
 
10.Name of the plans that have Capital Guarantee.
We provide Capital Guarantee on SBI Life - CapAssure Superannuation , SBI Life - CapAssure Gratuity and SBI Life CapAssure Leave Encashment Schemes.
 
11.Are the plans carrying capital guarantee same as the ones not carrying capital guarantees?
(If not, please provide details separately of capital guarantee and non capital guarantee funds)
We offer Capital Guarantee only under SBI Life - CapAssure schemes, that are managed on traditional platform.
Group Unit Linked products of SBI Life do not carry capital guarantee benefits.
Currently, we have one of such scheme SBI Life - Golden Gratuity. Funds are allocated as per allocation percentage requested by the Master Policyholder under the following fund options:
 


 Group Growth Fund
 Group Balanced Fund
 Group Conservative Fund
 Group Liquid Fund
 (Please refer to product directory for product details)
 
12.If your capital guarantee and non capital guarantee funds are the same do you offer capital guarantees to all companies/ individuals who invest their funds with you? If not, how do you differentiate between companies/individuals who have opted for capital guarantee and those who have not opted for it?
As already explained here above, Capital Guarantee is offered only through CapAssure Schemes. Companies which prefers to have market related return are investing in Group Unit Linked products and in such case, unit funds are only used under these schemes., therefore we differentiate Capital Guarantee Return not Company wise but product wise.
13.

Please specify the key differences in your investment strategy, composition and process between those of your capital guarantee funds and non capital guarantee funds.
IRDA investment regulation, 2000 clearly gives rules and limits under which all traditional Life Insurance products have to be managed. Exposure and Prudential norms are clearly disclosed under each class of assets.
SBI life investment strategy under SBI Life - CapAssure schemes is fully compliant with the IRDA regulation.

The above regulation is not applicable to Unit Linked products. Unit funds available under SBI Life - Golden Gratuity are invested according to the below caps.

 

 
ASSET TYPES
Group Liquid Fund (%)
Group Conservative
Fund (%)
Group Balanced
Fund (%)
Group Growth
Fund (%)
Govt. SecuritiesUpto 100%50-8020-500-30
Corporate Bonds (Investment
Grade)
Upto 20%
0-5020-400-30
Money Market Instruments/
Cash
Upto 100%
0-400-400-40
Equities NilNilUpto 30%Upto 60%
RiskLowLow to Medium
Medium to HighHigh
 
Note: The exposure towards money market for all the above mentioned Funds is capped at 40%
 

Part F: Fund Management Charges
 
1.
Do you levy any FMC per fund or per product?
Traditional (SBI Life - CapAssure schemes:
These products are non participating products. There is no Fund Management Charges. Rates of return declared at the end of each Financial Year are net returns.

On SBI Life - Golden Gratuity products, NAV is declared after deducting a basic Fund Management charges on daily basis as follows :
 


Group Liquid Fund: 0.80% p.a.
Group Conservative Fund: 0.90% p.a.
Group Balance Fund: 1.00% p.a.
Group Growth Fund: 1.10% p.a.
 
However, based on the actual fund size, SBI life will add extra units on daily basis as per below annual rates
 
 
Type of Fund < 4 Cr4Cr<10Cr10Cr<25Cr>=25Cr
Group Liquid Fund 0%0.10%0.20%0.30%
Group Conservative Fund0.%0.10%0.20%0.30%
Group Balance Fund0%0.10%0.20%0.30%
Group Growth Fund0%0.100%0.20%0.30%
 
Therefore the final FMC according to fund size is the difference between basic FMC and extra allocation for fund size.
 
 
Type of Fund
< 4 Cr4Cr<10Cr10Cr<25Cr>=25Cr
Group Liquid Fund
0.80%0.70%0.60%
0.50%
Group Conservative Fund 0..90%0.80%0.70%0.60%
Group Balance Fund 1.00%0.90%0.80%0.70%
Group Growth Fund 1.00%1.00%0.90%0.80%

2.

Can you give a slab-wise variation of additional bonus unit allocation, based on corpus size with the insurer - As approved by IRDA?
For Unit Linked product please refer to the above table (query 1).
On SBI Life - CapAssure schemes, we offer Additional Funding/Extra Allocation to recover your losses on account of exit penalty charged by your previous insurer. This Additional Funding is given upto a maximum of 3% of the Initial Contributions received during 1st Policy Year for the Master Policy Contract, irrespective of Fund Size. There is no slab-wise variation made for such Additional Allocation.

On SBI life - Golden Gratuity, Additional Funding is flat 3% of the Initial Contributions received during 1st Policy Year for the Master Policy Contract, irrespective of Fund Size. There is no slab-wise variation made for such Additional Allocation. Please also refer to Point 28 in this regards.
 
3.
What is the Standard Exit Penalty across all variants of your gratuity, leave encashment schemes - As approved by IRDA.
On surrender of the scheme the Fund will be transferred subject to the following Exit load (surrender charges). The Master policyholder has to give a three months advance written notice.

Traditional (SBI Life - CapAssure schemes):
 
 
Policy Year
Charges % on the Surrendered Amount
Policy Year 1Not Allowed
Policy Year 23%
Policy Year 32%
Policy Year 4&51%
Policy Year 6Nil
 
 
ULIP (SBI Life - Golden Gratuity):
 
 
Policy Year
Charges % on the Surrendered Amount
Policy Year 1Not Allowed
Policy Year 21%
Policy Year 30.50%
Policy Year 40.25%
5th Policy Year & onwardsNil
 

4.

Do you have any Entry loads on your products?
Traditional (SBI Life - CapAssure schemes): There is no entry load on our products.

ULIP (SBI Life - Golden Gratuity): Under this, if Annual Contribution is less than or equal to Rs 15 Lac, 2% of the same is being deducted as premium allocation charges.
 
5.Do you levy any administration Charges?
Traditional (SBI Life - CapAssure schemes): Rates of return declared are net of charges.

SBI Life - Golden Gratuity: Administration Charge is Rs. 50/- Per annum Per member to a maximum of
Rs 50,000/- grouper Master Policy..
6. Give details of any other charges/costs/recoveries, having any other terminology levied by SBI Life?
Traditional (SBI Life - CapAssure schemes): We do not disclose charges in our traditional schemes.

ULIP (SBI Life - Golden Gratuity):
The following charges are levied by SBI Life :
 1.
2.
3.
Fund Management Charge
Administration Charge
Allocation Charge
 
7.Give details of your Premium Redirection Facility
Redirection premium facility is available under SBI Life - Golden Gratuity.
This facility is available from 2nd policy year onwards:
 
First 4 redirection requests per policy year are free
Additional per Policy year will be charged at Rs. 1,000/- per redirection request.
 
8. How many free fund switches allowed per policy year and what are the charges for additional ones with the same policy year?
Switching facility is available under SBI Life - Golden Gratuity.
This facility is available at any point of time:


First 4 switch requests in a policy year are free
Additional per Policy year will be charged at 0.50% with Maximum Rs. 5,000/- per switch request.
 

Part G: Service and Systems
 
1.Special services

We provide the following special services;
 
 1.
2.
3.
4.
5.
6.
7.
Free Actuarial Valuation once in a year
Dedicated service team as one point of contact
Dedicated operations & Claim department to cater to your operational needs.
Legal advice on trust formation and other related query.
Investment counseling : Conference-calls with our Investment team
Help in creation of Trust Deeds, Deed of Variations, CIT filing etc.
Monthly investments newsletter to keep our clients abreast with the latest developments.
 
2.Awards / recognition for our back end systems supporting service infrastructure
We have been rated as the "Most Trusted Life Insurance Company" by Brand Equity
Also, we have got the highest investment rating of 'AAA' by CRISIL
3.Dedicated resources for back end operations specific to Group schemes
We have a dedicated pre-sales to cater to the needs of our prospective customers and Services team acts as one point contact for all our service requests/queries.

Our dedicated service team handles the operations, claims and other request which is raised by the customers.

The team has well defined TATs which is constantly monitored from time to time and strives to provide timely and efficient services to the clients.
4.Turn Around Time (for claim settlement)
TATs for Claims Settlement: Death/Retirement/ Resignation
For GG/ SA/ LE:
1) Incase of incomplete documents - 2 Working Days pending requirements will be raised
2) Incase of complete documents - 5 Working Days

You can send the claim form on the below mentioned address:
  SBI Life Insurance Co. Ltd. Group Service Desk,
Ground Floor, Voltas International House, Bank Street,
G.N.Vaidya Marg. Near Horiman Circle,
Fort, Mumbai – 400023
For any assistance please contact Group Service Desk at 022-67478400  

Part H: Product Related Queries

General information about a Group Gratuity scheme
 
1.
What is the nature of Gratuity Liability?
Gratuity is a statutory obligation under Payment of Gratuity Act, 1972 to provide a lump sum payment to an employee, when he retires/ resignation/ termination on account of death or disablement due to accident or disease.
2.
Who comes under the preview of Payments of Gratuity Act, 1972 applicable?
The Gratuity Act is applicable to all establishments which employ 10 or more employees. Act once applicable continues to be applicable inspite of the fall in the number below 10.
3.
What is the amount payable to an employee under Gratuity Act, 1972?
Gratuity is payable @ 15 days last drawn wages for every year of completed service and a part thereof in excess of six months subject to maximum of Rs 3.50 lacs** (tax-free).. For seasonal workers salary is calculated @ 7 days instead of 15 days.
In line with the recommendations of the Sixth Pay Commission a proposal to raise this limit to Rs. 10 lacs is under active consideration by the Government of India.
4.
What is the method of calculating salary for gratuity?
Wages means basic salary + DA (if any) only. No allowances, commission, bonus, etc to be
considered as part of wage for the purpose of gratuity calculation. In case employees paid on monthly wages basis, per day wages should be calculated by dividing monthly salary by 26 days to arrive daily wage.
5.
When does gratuity becomes payable?
Normally, gratuity become payable only after an employee completes five years of continuous service. An Employer can pay enhanced benefits i.e. lower this eligibility period to say 3 years However, in case of death and disablement, the condition of minimum 5 years' service is not applicable.
6.
What does continuous service means?
Continuous Service basically means un-interrupted service and shall include absence due to leave, accident, sickness, lay-off, lock-out or strike, and cessation of work not due to employees fault.
7.
What is disablement considered under the gratuity act?
For the purpose of this section disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.
8.
What are the ways in which the employer can provide for the gratuity liability?
Employer may provide for gratuity liability in following ways:
 

Pay As You Go - Debit the gratuity paid to employees every year to the P&L a/c.
Self Managed Trust - Fund the liability by creation of a Gratuity Trust and managing the funds internally.
Through a Life Insurer - Fund the liability by creation of a gratuity trust and managing the funds through the professional services of a life insurance company.
 
9.What are the advantages of funding gratuity?

Following are the advantages of funding gratuity liability:
 

Sound accounting principles demands each year's gratuity liability should be provided out of profits and gains of that year.
It avoids the liquidity and cash problem which may arise in future if the gratuity is not funded.
It provides security for the employees. It eliminates the problem of overstatement of profits for taxation purpose.
10.What are the benefits of shifting the funds from self managed trust to an Insurer?
 


The investment pattern is decided by the Insurance Company as per IRDA investment regulation.
The insurance company provides hassle free administration of funds and operational process and service.
The insurance company provides value added services like actuarial estimation of gratuity liability, investment report.
The insurance company provides a suitable group term cover on the future service liability of the employee.
 

SBI Life - CapAssure Gratuity Scheme
 
1.What is SBI Life - CapAssure Gratuity Scheme (CA-GS)?
SBI Life - CapAssure Gratuity Scheme (CA-GS) is a traditional, non participating, yearly renewable gratuity scheme.
 
2.
What is the target segment for CA-GS?
Gratuity is a statutory benefit. All employers who fall under purview of Payments of Gratuity Act, 1972, and want to extend gratuity benefits to their employees can take up this scheme.
 
3.What are the boundaries for this plan?
Boundaries for this plan are:
 










Term: Yearly renewable group gratuity scheme.
 Life Cover: Life Cover is a mandatory component with CA-GS
Age at Entry (as on last birthday):
Minimum - For gratuity benefit and Life Cover: 18 years of age
Maximum - Lower of (Retirement age less one year or 79 years of age) Life Cover ceases at 80 years of age or on attainment of Retirement age. However, Life cover amount above 60 years of age is Rs.1000/
Group size has to be 10.
Minimum amount of contribution (Annual Contribution + Initial Contribution) to be made is Rs 50,000/-
Payment Frequency:
Annual Contribution: Can be paid in the yearly, half yearly, quarterly or monthly mode. Life Cover premium: To be paid annually in advance.
Minimum Sum Assured is Rs.1000/- and maximum as per scheme rules
 
4.What are the key features of CA-GS?
Some of the key features of this scheme which makes it distinct:
 



Capital Guarantee on Fund under Management
Unique Fund Pooling Advantage
Additional Funding upto 3% of the Initial Contribution paid in the first policy year to absorb exit penalty charged by the previous insurer
Additional Benefits: SBI Life - Group Accidental Death and Permanent Disability rider
Flexibility of partially transferring the fund to SBI Life - Golden Gratuity (ULIP Plan)
 
5.Is there any Capital Guarantee under CA-GS?
We assure Capital Guarantee. Capital guarantee implies that a positive investment return will be declared at the end of each financial year. Hence, your funds under management are guaranteed.
 
6.Are there any Guaranteed Returns under CA-GS?
Capital is guaranteed, not the rates of returns to be declared..
 
7.What are the options with respect to the life cover under CA-GS?
Following are the life cover options under this scheme:
 



Minimum flat cover of Rs 1000
Flat Term Cover
Future Gratuity liability Cover
Graded Cover
Multiple of Annual Salary (Maximum 5 times)
 
8.When does the life cover cease to exist under CA-GS?
Risk Cover for the member shall automatically cease on occurrence of any one of the following events:
 



Termination of the master policy
Member attaining the maximum age of cover as defined in master policy subject to maximum of 80 yrs.
Death of the Member
On expiry of the grace period for the risk premium payment due.
Member ceases to be a member of the group as defined in the scheme rules.
 
9.
What is Free Cover Limit (FCL) under CA-GS?
FCL is the life cover upto which a member need not undergo underwriting, provided he is active at work on the date of commencement of risk.
 
10.What are the Benefits available under CA-GS?
Death Benefit:
 
In case of an unfortunate death of an employee whilst in service, his nominee will get basic sum assured plus rider sum assured, if any, with accrued gratuity benefit (higher of as per scheme rules or as per Payments of Gratuity Act, 1972).
 
 Exit due to Resignation /Termination/ Retirement:
 On exit due to above reasons, accrued gratuity benefit (higher of as per scheme rules or as per Payments of Gratuity Act, 1972) shall be payable.
 
 Exit due to Permanent Disability or ill-health or any other reason:
 
In such event, the employee will get accrued gratuity benefit (higher of as per scheme rules or as per Payments of Gratuity Act, 1972).
In addition, only in case of Permanent Disability due to accident, he/she shall also get rider sum assured, if any.
 
 Claim payments will be facilitated through the master policyholder / trustee.
 
11.
What is "Active at Work" clause under CA-GS?
"Active at Work" means "The employee should not have remained absent or availed leave on the grounds of health for a continuous period of 20 days or more in the year preceding his admission into the scheme".
Employee not "Active at Work" at the time of commencement of risk can be covered after medical underwriting as per underwriting rules at that time, to the satisfaction of SBI Life, done solely at the cost of the employer. However, SBI Life can receive contribution towards their/his/her gratuity liability.
 
12.
What are the exclusions that apply under CA-GS ?
There are no exclusions that are applicable for basic cover in this plan including suicide exclusion, however rider specific exclusion apply
 
13.
What is the Investment Pattern under CA-GS?
Investments are done based on IRDA's investment guidelines
 
14.
What is the Interim Interest under CA-GS?
Interim Interest is the amount of interest due for the financial year during which the surrender of the master policy has been done. Rate of interest will be 50% of last year's investment return rate (declared for that particular Master Policy).
However, the Master Policyholder can opt either of the following options at the time of surrender:
 

At the time of surrender, the client will get only the "nominal part" of the fund, which means the fund value with no interest calculated for the current financial year.
The exact amount of interest due for the financial year during which surrender occurred will be calculated at the end of the financial year (as per the rule mentioned in section 19 above) and will be paid to the client.
 
15.
What is the procedure to revive a lapsed policy under CA-GS?
If the due premium is not received within the grace period the policy will lapse. The lapsed master policy can be revived within 2 years from the date of lapsation. For Revival of a lapsed policy, a new quotation will be generated with a new cover start date, which will be the revival date subject to acceptance of the risk. The members of the master policy will have to re-enter as new members for risk coverage.
However, the gratuity fund continues to accumulate subject to deduction of charges (if any).
 
16.
What is Additional Funding under CA-GS? How does a Master Policyholder benefit under CA-GS?
Additional Funding is absorption of surrender penalty levied by the competitor at time of exit, to join SBI Life.
SBI Life will help the Master Policyholder to make his losses good, incurred on exit from the competitor, by giving an amount equal to actual surrender penalty subject to maximum 3% of transferred fund amount including surrender penalty levied on the past service liability contribution received during 1st policy year. This facility is available subject to proof of surrender penalty being levied. It will be recovered in three equal annual installments at the end of each subsequent policy year from the fund.
 
17Is the Partial Transfer of Funds allowed under CA-GS?
Yes, the partial Transfer of funds is allowed.
 a.From CA-GS to SBI Life - Golden Gratuity: There is only one partial transfer allowed per financial year starting from 2nd year onwards with a surrender charge of 50%. The funds can be transferred only after receiving the written request carrying one month's notice period. The minimum transferable amount has to be 1.5 lacs and maximum cannot be more than 50% of funds in the master policy.
 b.
From CA-GS to the Trust: There is only one partial transfer allowed per financial year starting from 2nd year onwards with a surrender charge of 100%. The funds can be transferred only after receiving the written request carrying one month's notice period. The minimum transferable amount has to be 1.5 lacs and maximum cannot be more than 50% of funds in the master policy.
 
18.
What is SBI Life - AD & TPD rider under CA-GS? Till what age this rider can be availed?
SBI Life - Group Accident Death & Permanent Disability Rider (SBI Life - AD & TPD) (UIN No.: 111B002V01), maximum age at entry should not be more than 64 yrs as on last birthday and maximum maturity age is 65.
Benefits:
On death or permanent disability due to accident the (accidental death sum assured) is payable in addition to the basic death benefit. The maximum benefit under this rider will be limited to the basic sum assured / Rs. 5 lakhs whichever is lower. The rider benefit ceases after permanent disability benefit is paid.
 
19.What are SBI LIFE - AD & TPD rider exclusions under CA-GS?
Exclusions under the SBI LIFE - AD & TPD Rider are as follows:
The Company shall not be liable to pay the rider benefits, if the disability or the death of the Life Assured shall,
 1.
be caused by intentional self injury, attempted suicide, insanity or immorality or whilst the Life Assured is under the influence of intoxicating liquor, drug or narcotic; or,
 2.
take place as a result of accident while the Life Assured is engaged in aviation or aeronautics in any capacity other than that of a fare-paying, part-paying or non-paying passenger in any air-craft which is authorized by the relevant regulations to carry such passengers and flying between established aerodromes, the Life Assured having at that time no duties on board the aircraft or requiring descent there from; or,
 3.
be caused by injuries resulting from riots, civil commotion, rebellion, war (whether war be declared or not), invasion, hunting, mountaineering, steeple chasing or racing of any kind; or,
 4.
result from the Life Assured committing any breach of law; or,
 5.
Arise from employment of the Life Assured in the armed forces or military service of any country at war (whether war be declared or not) or from being engaged in police duty in any military, naval or police organization.
 
20.
What is Unique Pooling Advantage under CA-GS?
Pooling of Funds is aggregating amount of all your funds (of that master policyholder) under non-unit linked group retirement benefit schemes managed by SBI Life, is taken into account to declare a rate of return on investments, based on fund size. Higher aggregated fund size may help us declare higher returns.
 
21.What is the Grace Period available under CA-GS?
A 30 days Grace period is available for payment of life cover premium.
 
22.Is free look period available under CA-GS?
There is no free look period available for this scheme.
 
23.What are the documents required for Master Policy Issuance under CA-GS?
 1.
2.
3.
4.
5.
6.
7.
Duly completed Master Proposal Form.
Signed & Stamped Quote Sheet
Signed & Stamped member Data/A written confirmation towards the same.
Copy of the Trust Deed/Rules or Deed of Variation (as the case may be)
Copy of the Board Resolution
Copy of the letter from Trustees duly acknowledged by the Income Tax Authorities.
Life Cover Premium
 
24.What is the Risk Commencement Date under CA-GS?
The risk will commence immediately upto Free Cover Limit from the date of realisation of Life Cover premium. For life cover above Free Cover Limit, risk will commence on the date of fulfillment of underwriting requirements and acceptance of the same by SBI Life receipt of Life Cover premium (whichever is later).
For new joinees to the group, risk will commence from the date of receipt of member data and the risk premium.
 
25.Is there any Administration Charges under CA-GS?
Rates of returns declared under CA-GS are net of charges
 
26.Is there any Fund Management Charges under CA-GS?
There are no Fund management charges.
 
27.What are Surrender charges under CA-GS?
Surrender Charges are as follows:
 
 
Policy yearCharges % of Surrender / Partial withdrawal of amount
1Not Allowed
23%
32%
41%
51%
6 & OnwardsNIL
 

28.

What will be the surrender penalty in case Additional Funding is availed under CA-GS?
If the policy is surrendered within 3 years, the additional surrender penalty would be as follows:
 
 
Policy yearSurrender Charge for Additional Funding, if availed.
1Not Allowed
2Total unrecovered extra allocation due to absorption of surrender penalties at inception.
3Total unrecovered extra allocation due to absorption of surrender penalties at inception.
4 & OnwardsNo Extra Surrender Charge
 

29.

How are claims settled under CA-GS?
Claim may arise due to Resignation / Retirement / death or disability.
Process for Claim settlement is as follows:
 

Claim intimation has to be given to SBI Life insurance co. in a given prescribed format. Claim Form is available with Group Corporate Team of SBI Life insurance co.ltd..
Submit the Claims Form with required set of documents as mentioned on the Claim Form
 
30.
What is the claim procedure during the Grace period under CA-GS?
If the death claim arises during the grace period then the claim would be payable subject to the payment of the due risk premium for the entire group, by the master policyholder.
 
31.What are the tax benefits under the scheme under CA-GS?
For Employer:
 a.
b.
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.
 
32.
What is the applicability of Fringe Benefit Tax under CA-GS?
The contribution for the gratuity by the employer does not come under purview of Fringe Benefit Tax. It is applicable to contribution made by employer beyond Rs.1,00,000/- towards Superannuation Scheme (Effective from 1st April 2005) and on Life cover component of the contribution.
 
33.What is the TDS applicable for the gratuity payment under CA-GS?
It is the responsibility of trustees to deduct tax as per the provisions of the income tax rules and no TDS will be deducted from SBI Life's end.
 
34.What is the Service Tax applicable under CA-GS?
Service tax plus additional cess would be levied as applicable.
*Above tax benefits are as per Income Tax Act, 1961 and Income Tax Rules, 1962. Please consult Tax/Legal expert for details.
 
35.Top Client List
 









SAIL
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Mazagaon Dock
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Paradip port trust
New Mangalore port Trust.
Rashtriya Ispat Nigam Ltd
Ganon Dunkerly
ITC
 
36.Will your firm provide a relationship manager who will work for client specific?
Yes. Your Service/ Customer Relationship Manager will be the one point contact for any queries.
 
37.Does your firm have a toll-free number for employee query-resolution?
If yes, provide the number(s).-1800 229090
However we advice our customer to contact dedicated service relationship managers for any query resolution
 
38.
Detail the quality standards adopted by your firm?
SBI life received ISO 9001: 2000 certification for superior claim settlement process.

SBI Life became the only domestic life insurer to achieve CMMI Level 3 certification for IT processes and software development capabilities.

SBI life rated as the 'The Most Trusted Private Life Insurer' according to a survey conducted by Brand Equity in association with AC Nielsen ORG-MARG and the Economic Times Intelligence Bureau.

SBI Life became first life insurer in India to receive the highest financial rating 'AAA' from CRISIL, the country's best known rating agency in 2007.

We also have a dedicated Group Corporate Quality Check Team to ensure constant quality.
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