ffers life insurance protection under group insurance policies to various groups such as employer-employees, professionals, co-operatives, weaker

sections of society, etc. LIC provides insurance coverage to people at subsidized rates under Social Security Group Schemes. Besides Providing insurance coverage, Life Insurance corporation also offers group schemes to employees, which provide funding of gratuity, pension liabilities and leave encashment liabilities of the employers.

1. Group Term Insurance Schemes:

Employer-Employees groups is offered group life insurance schemes providing either uniform or graded cover. Group Insurance Schemes providing uniform cover will be granted to associations of professionals, members of cooperative banks, welfare funds, credit societies and weaker sections of society.

2. Group Insurance Scheme in lieu of EDLI:

The employees Deposit Linked Insurance Scheme is application to all establishment and undertaking contributing to Employees Provident Fund under EPF and MP Act, 1952 with effect from 01.08.1976, unless exempted under section 17 (2A), of the act. The schemes provides for an insurance cover to an employees, which is linked to his balance in the PF Account, subjected to a maximum of Rs 60000. Under LICs scheme, which is granted in lieu of the EDLI, the insurance cover starts from Rs 5000 and depends on the service put in by the employees and the current monthly salary on each annual renewal date. The cover provided will be at least Rs 2000 more than the cover given under the EDLI scheme. Few advantages of the LICs schemeare higher cover, lower premium (depending on average age), cover not linked to balance in PF account, simple administrative procedures, easy claims settlement process etc.

3. Group Gratuity Schemes:

Gratuity is a statutory liability of the employers. This is an incremental liability which accrues to an employee for every year of sevice put in by him. In the group gratuity scheme granted by LIC, in the event of premature death of the

member, the dependent can get an amount which will be equal to the gratuity payable on the normal retirement of the member, had he survived up to the date of superannuation. Apart from the above the advantage of LICs group gratuity schemes are free valuation of the liability, guidance in drafting Trust deed and rules of the scheme, security for the fund, attractive return, lower premium for the insurance, optional critical illness rider benefit against major diseases, periodical information about the status of fund, simple administrative and claim settlement procedures, tax concessions, etc.

4. Group Superannuation Scheme:

The Group Superannuation scheme is designed to provide pension to the employees/beneficiaries on the exit of the member from the service. A decreasing group insurance cover in conjunction with the superannuation benefit can also be provided to supplement the lower accumulation in the event of premature death of the member. The scheme is of two types: a) Money Purchase Scheme and b) Benefits Purchase scheme. Pension which is linked to the Dearness Allowance will also be granted. The LICs Group Superannuation Scheme out are easy to install and provides best service, free valuation of the liability, attractive returns, safety of funds, simple administrative procedures, periodical statement on the fund position, tax, concession, etc. LIC offers a wide range of benefits options to cater to the needs of the different beneficiaries.

5. Group Savings Linked insurance Scheme (GSLI):

The scheme offers insurance cover with an element of thrift. This scheme is granted to Employer-Employee groups. Under the scheme out of the contribution received in respect of each member of scheme a portion is utilized towards the insurance cover; the balance is accumulated till the exit. In the event of premature death of the member, the amount held in his account together with accumulated interest and insured amount is payable. The scheme provides an attractive rate of interest on the savings and lower premium for insurance granted, tax concessions, etc.

6. Group Annuity Scheme:

Employers who have a privately administered superannuation fund, where money are invested by the trusties as per income tax rules can purchase pension for employees as and when it is due under group annuity policies from LIC. LIC offers wide range of benefits options combined with good rate of return on the investment.

7. Group Leave Encashment Scheme (GLES):

According 5to the accounting standard (AS15) of January, 1995 and amended section 209 (3) of the companies act 1956. It has become necessary for employers to provide for the liberty of the leave encashment facility available to employees in the annual book of accounts. The group leave encashment scheme (GLES) is designed to fund such liberties of the employers. The scheme offers free valuation of the liberty, attractive returns and best service combined with insurance cover which may either be uniform or graded.

8. Group critical Illness Rider benefits:

This offer to employers-employees groups as an accelerated benefits granted together with group insurance scheme. This benefits provides coverage against 8 major diseases with maximum of hundred person acceleration. The maximum cover granted is Rs. 20,00,000. The benefit is payable at its first instance, mere diagnosis of the illness is sufficient to get the benefits.

9. Group Mortgage Redemption Assurance Schemes:

This scheme covers the borrowers of housing vehicle loans from financial institutions where the loan are recovered in EMI. Insurance covered allowed to borrowers up to the out standing loan excluding the EMI interest, subject to the conditions applicable to scheme. single premium is payable for the entire term of loan at one go.

10. Group insurance scheme for deposit holders of banks:

This scheme covers account deposit holders of a bank. The cover allows is Rs 1 lac per member with / without double accident benefit.

11. Unit Linked Gratuity Plus:

With effect from June, 2006, LIC has brought out a Unit Linked group gratuity plan, called gratuity plus for management of Gratuity fund. It is a market linked plan, which offers great flexibility and transparency.

12. Group Superannuation Plus Plan:

Group Superannuation plus plan is introduced by LIC in May, 2009. This is a unit linked defined contribution plan for management of superannuation funds. The policy holder has the choice of investing the member vise allocated contribution in any one of the four fund types i.e. Bond Fund, Income Fund, Balanced Fund and Growth Fund. Returns under this plan are market linked and flexibility of contributions, Top-up additional contributions, low fund management charges and expenses are the salient features of this plan.