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Retiresurance® Group Insurance Plan
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IDBI Federal Retiresurance® Group Insurance Plan (Product UIN: 135N030V01)

It is rightly said that, ‘The secret behind any organisation’s success is its satisfied employees’. An employee is the very reason for your existence and is critical to business success. It is your prime responsibility to reward them as a gratitude for the services offered by them in the company. Also, your employees have a responsibility towards their families. Hence, providing them with a basic life cover also becomes your responsibility in case of their untimely demise.

IDBI Federal Retiresurance Group Insurance Plan is here to help you with the management of funds that you have set aside for your employee’s retirement benefits - Gratuity, Superannuation and Leave Encashment. It ensures that your employees are rightfully rewarded for all their hard work.

IDBI Federal Retiresurance Group Insurance Plan is a non-linked non-participating variable insurance plan, designed for employer-employee groups only. It enables employers with more than 10 employees to outsource the management of their employee’s gratuity, superannuation and leave encashment funds. It also provides basic life insurance protection to the members of the plan.

  • The plan helps you manage funds for your employee’s retirement benefits under the following schemes:
    • Defined Benefit (DB): Benefits are pre-defined as per the scheme rules. The contribution that you make towards the fund takes into account both the contribution for the past service by your employees and the future service liability for the existing as well as future employees. The contribution shall be determined according to actuarial valuation. As you understand,

      • Gratuity: Under this benefit, you pay your employee a lump sum in gratitude for the services offered in the company.

      • Superannuation: This benefit allows you plan for your employee’s retirement in a tax efficient way.

      • Leave encashment: Under this benefit, you pay your employee a lump sum for the leaves that he/she has accumulated over a period of time upon leaving the company.

    • Defined Contribution (DC): Contribution in respect of each member is fixed as per the scheme rules. Members can also contribute along with the master policyholder.

      • Superannuation: This benefit allows you plan for your employee’s retirement in a tax efficient way.

  • Death benefit: This plan lets you provide a basic life cover to your employees which is payable to their families in case of their untimely demise. The benefit payable is as follows:

    • Superannuation

      • Under Defined Contribution scheme, accumulated account balance as per the scheme rules with a minimum benefit of 100.1% of all premiums paid less withdrawals shall be paid.

      • Under Defined Benefit scheme, accrued liability as per the scheme rules shall be paid.

    • Gratuity and Leave Encashment

      • Accrued liability as per scheme rules and fixed basic sum insured of Rs. 1,000 shall be paid.

  • Interest rates/additions: The following interest rates will be credited to the policy account on a quarterly or annual basis, as the case may be.

    • Minimum Floor Rate of 0.5% per annum shall be credited on the balance in the policy account on quarterly basis.

    • An additional interest rate shall be credited on a quarterly basis, over and above the minimum floor rate.

    • Non-negative residual additions, if any, shall be credited to the policy account to meet maximum Reduction In Yield (RIY), starting from 5th policy year.

  • On Retirement/ Resignation/ Disablement of the member of the scheme

    • Superannuation

      • Under Defined Contribution scheme, accumulated account balance shall be paid.

      • Under Defined Benefit scheme, accrued liability shall be paid.

    • Gratuity and Leave Encashment

      • Benefit will comprise of the accrued liability

    In all the case above, the benefit paid will be as per the scheme rules.

  • Market Value Adjustment (MVA) may be levied in case of bulk exits (for benefit payouts as defined in scheme rules and for an amount over and above 25% of the Account Value at the beginning of the policy year) or complete surrender of the policy.
  • You make annual contributions on respective due dates. You can make the initial contributions in respect of employees, to secure the benefits based on their past service, at the outset of the scheme or in installments.

  • The contributions, net of contribution charge (if any), under both Defined Benefit and Defined Contribution will be held in the policy account as detailed below:
    • Defined Benefit: Under this scheme, one policy account is maintained for each scheme. The contributions received less charges and accrued interests for each contribution, are maintained in the policy account. Whenever a member exits the scheme or any benefit is payable, the required amount is withdrawn from the policy account. In case the balance in the policy account is insufficient to pay out the claims, the master policyholder is responsible to make good for such deficiency. In case of retirement, resignation or disablement of the member of the scheme, accrued liability will be paid as per the scheme rules.

    • Defined Contribution: Under this scheme, a separate account is maintained in respect of each member of the scheme. The contributions received less charges and the accrued interests for each contribution, are maintained in this account. Whenever a member exits the group, the accumulated amount in his/her account will be utilised to provide for the benefits. In case of retirement, resignation or disablement of the member of the scheme, accumulated account balance will be paid as per the scheme rules.

  • Death benefit is payable in case of death of an insured member.

  • Choose your premium payment term (PPT): Choose the duration for which you would like to pay premiums. There are 6 combinations of PPT and PT available in this plan as below.

Entry age

Minimum

18 years

Maximum

79 years

Maturity age

Maximum

80 years

Group size

Minimum

10 members

Maximum

No limit

Death benefit

Superannuation

Defined Contribution: Accumulated account balance as per the scheme rules, in addition for -

Defined contribution schemes where individual accounts are maintained:
There shall be a minimum assured benefit of 100.1% of all premiums paid on each individual account applicable on death of the member.

Defined benefit:
Accrued liability as per the scheme rules.

Gratuity and Leave Encashment:
Accrued liability as per the scheme rules + Fixed basic sum assured of Rs. 1000.

Policy term

Not applicable, as it is a yearly renewable* plan

Contribution

Initial

Min: Rs. 50,000
Max: No Limit

Annual

Min: Nil
Max: no limit (As per certified Actuary’s certificate in accordance with AS 15(revised))

Frequency of contribution

Yearly/ Half-yearly/ Quarterly/ Monthly

Insurance is the subject matter of solicitation. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale. Tax Benefits are as per the Income Tax Act, 1961 and are subject to changes in the tax laws from time to time. IDBI Federal Retiresurance Group Insurance Plan is a non-linked non-participating variable insurance plan. Product UIN: 135N030V01. The product is underwritten by IDBI Federal Life Insurance Company Limited (IRDAI Regn. No 135 I Corporate Identity Number – U66010MH2007PLC167164) having its registered office at: IDBI Federal Life Insurance Company Limited, 22nd Floor, A Wing, Marathon Futurex, N. M. Joshi Marg, Lower Parel (East), Mumbai 400013, India.

SMS charges as applicable

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