Bajaj Allianz Group Superannuation Secure

Transcription

1 Bajaj Allianz Group Superannuation Secure A Group Insurance Plan Assure your employees a financially secured, stable and independent post retirement life. Bajaj Allianz Group Superannuation Secure Group Superannuation Secure is a non-linked, non-participating plan, which can be taken by you (an employer) to manage pension fund for your employees. This scheme helps in building a substantial retirement fund, to ensure a secure regular income flow after retirement. The plan offers a minimum Guaranteed Interest Rate, which will be guaranteed for the entire term of the policy and an Additional Interest Rate, which may be declared by the company at the start of each financial quarter.

2 How does the scheme work? The policy can be maintained as per your requirements under the following two options: Option 1 Pooled-level or Option 2 Member-level (individual account) The contribution you pay (so as to achieve the benefit level as per the scheme rules) will be credited to the individual account or the pooled account, based on the option chosen by you, after deducting applicable scheme administration fees. The company offers a minimum Guaranteed Investment Return (GIR) of 3% per annum through-out the term of your policy. An Additional Interest Rate (AIR) may be declared by the company at the start of each financial quarter for the following period. The individual/pooled account will be first credited with the GIR and then credited with the AIR declared, if any. Pooled/individual account value is the accumulated value of the contributions after crediting the interest rate/s and netting off for the applicable scheme administration fees. Note: 1. Any payment or withdrawal from the individual account or pooled account will get credited for GIR/AIR only for the period it remained invested in the fund. 2. The investment pattern of the fund is governed by the IRDA regulation on the controlled fund. Scheme Administration Fee A scheme administration fee of 0.5% of the contribution or at the time of each contribution and 1 lakh whichever is lower shall be deducted An account-based scheme administration fee of 1.00% per annum of the pooled/individual account value will be deducted at the end of each financial year, after crediting for the GIR/AIR.

3 Benefits Benefits under Option 1 Pooled level Events Death of a member How and when Benefits would be payable Payable immediately on death of the member, as allowed in the scheme rules Size of such Benefits/Policy monies An amount as decided by you in accordance with the Scheme Rules. On Vesting (Retirement of a member) Payable immediately on retirement of the member, as allowed in the scheme rules An amount as decided by you in accordance with the Scheme Rules On Withdrawal (As per scheme rules) Payable as allowed in the scheme rules An amount as decided by you in accordance with scheme rules. At any point of time, the total benefit payable on complete surrender shall not be less than 101% of the total contribution paid by you, net of any withdrawal already made from the account Benefits under Option 2 Member level (individual account) Events Death of a member On Vesting (Retirement of a member) On Withdrawal (As per scheme rules) How and when Benefits would be payable Payable immediately on death of the member, as allowed in the scheme rule Payable immediately on retirement of the member, as allowed in the scheme rules Payable as allowed in the scheme rules Size of such Benefits/Policy monies Individual account value or 101% * member s contributions, whichever is higher Individual account value or 101% * member s contributions, whichever is higher Individual account value

4 In case of bulk exit due to any event, the benefit payable will further be subject to the application of Market Value Adjustment Bulk Exit: If the total amount of withdrawals due to any event, over the past ninety (90) days (as on the date of any withdrawal) exceeds 25% of the total account value at the beginning of the policy year, such a withdrawal shall be termed as a bulk exits. Market Value Adjustment shall be applied to the amount which is over & above the amount representing bulk exit. The value payable under such withdrawals would be: For Option 1 - Pooled Level: An amount as requested by you provided the grossed up amount after adjusting for the Market Value Adjustment (if any), does not exceed the policy account value in the pooled account. However, if such grossed up value exceeds the policy account value then policy account valueless Market Value Adjustment (if any) shall be payable. The grossed up amount means the amount as payable divided by(1-market Value Adjustment factor). For Option 2 - Member level: Total of Individual account value (s) of withdrawing member (s) adjusted for the Market Value Adjustment (if any). Surrender: You may do a complete surrender of your policy by giving an advance notice of three (3) months. Upon receipt of such request, the higher of the Guaranteed Surrender Value (GSV) under your policy or the total account value less surrender penalty (if any), less Market Value Adjustment (if any) shall be paid and the policy will terminate. The GSV under your policy will be 70% of the total contributions paid less all benefits paid since inception from the account. On surrender of your policy within first three (3) policy years, the surrender penalty applicable will be the lower of 0.05% of the total policy/individual account value or 5,00,000.

5 How to set- up Group Superannuation Scheme? The Bajaj Allianz Group Superannuation Secure Scheme can be set-up in any of the following ways: a) If you want to set up a fund 1) Draft trust deed and rules (Bajaj Allianz Life Insurance Company provides you with expert guidance on the same), execute and appoint Trustees for administering the scheme. 2) Apply for approval to Commissioner of Income Tax under Part B of the Fourth Schedule of the Income Tax Act, ) Submit the Master Proposal Form signed by Trustees, the complete employee data in the prescribed format, copies of trust deed and rules, with the contribution. 4) Pay the future contributions as defined in the rules. b) if you want to outsource self-managed funds or switch over from an on going scheme with any other company: The securities can be transferred subject to the approval from our Investment team and as per terms and conditions laid down by them and follow steps 2, 3 and 4 as mentioned above. However, all this would be subject to Execution of Deed of Variations by Trustees and approval of Commissioner of Income Tax. Important Details of the Bajaj Allianz Group Superannuation Secure Scheme Parameter Details Minimum Size of the Group 10 members Minimum Entry Age 18 years Maximum Entry Age 75 years Maximum Age at Maturity 80 years Minimum Policy Term Annually renewable Regular Contribution Frequency Yearly/ Half Yearly/Quarterly/Monthly Minimum account Size 1,00,000 Maximum account Size No Limit

6 Non-Forfeiture If regular contributions from you in any year are not received by the Company as the fund is certified to be over funded/in-surplus by your Actuary as per AS15 (Revised), then, pool/individual account shall keep on accumulating, at the interest rates mentioned above net of applicable scheme administration fees, till the total account value falls to the level of 1,10,000 due to payment of benefits for the reason of death, retirement and withdrawal as per scheme rules. If account value falls below 1,10,000, the company will intimate you to make contribution within one month to bring the account value above 1,00,000 failing which the policy will be terminated and the surrender value as on date of termination shall be paid to you. Market Value Adjustment The market value adjustment is a factor to cover the market value losses of the underlying investment in relation to the policy account value. Loans No loans are available under the scheme. New Entrants and Leavers At the commencement and thereafter at any movement of the member, you will have to send us all the members data (only under option 2) and the contribution to the respective unit of Bajaj Allianz Life Insurance Company Suicide Clause No Suicide exclusions. On death of the member due to suicide the death benefit as stated under the benefit section above hall be payable.

7 Nomination The company will pay the policy proceeds to you. The individual members can nominate the person (s) to whom the policy proceeds will be payable by you upon their death. Tax Benefits As per applicable Tax Laws Free Look Period Within 15 days [30 days in case the Policy is issued under the provisions of IRDA Guidelines on Distance Marketing of Insurance Products] from the date of receipt of the policy, you have the option to review the terms and conditions and return the policy, if you disagree to any of the terms & conditions, stating the reasons for your objections. You will be entitled to a refund of the contribution paid, subject only to a deduction of the applicable stamp duty Expenses. * Distance Marketing includes every activity of solicitation (including lead generation) and sale of insurance products through modes other than in person. Sample Illustration As per Annexure

8 Year Contribution Account Value at Guaranteed Interest Rate (GIR) of 3% p.a. Gross investment return of 4% p.a Additional Interest Rate (AIR) Scheme Admin 1% p.a Total Account Value Gross investment return of 8% p.a Additional Interest Rate (AIR) Scheme Admin 1% p.a Total Account Value 1 5,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, The values shown above are for illustration purpose only. Some returns are guaranteed and some returns are non guaranteed. If the plan offers guaranteed returns, then these will be clearly marked Guaranteed in the illustration table. The guaranteed return is based on the minimum investment return of 3% p.a. under the plan. The non-guaranteed returns are based on the gross investment returns of 4% & 8% and these are not upper or lower limits of what you might get back. The account value shown above does not allow any benefit outgo due to resignation, retirement or death. Incase of such outgo the account value shall be reduced by that benefit outgo. The company does not express any view about the future investment market condition and that could have a significant impact on actual returns under the plan. The illustrations are approved by the company and takes into account the guidelines for illustrations set by the Life Insurance Council and the IRDA.

9 Contact Details Bajaj Allianz Life Insurance Company Limited, G.E. Plaza, Airport Road, Yerawada, Pune Tel: (020) Fax: (020) For any queries please contact: Call Any Mobile & Landline life@bajajallianz.co.in Chat: bajajallianzlife.co.in/chat For More Information: Kindly consult our Insurance Consultant or call us today on the TOLL FREE numbers mentioned above. This brochure should be read in conjunction with the Benefit Illustration and Policy Exclusions. Please ask for the same along with the quotation. Prohibition of Rebate: Section 41 of the Insurance Act, 1938 No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. Any person making default in complying with the provisions of this section shall be punishable with a fine which may extend to five hundred rupees. Section 45 of the Insurance Act, 1938 No Policy of life insurance effected after the coming into force of this Act shall, after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policy-holder and that the policy holder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose. Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE. Both enjoy a reputation of expertise, stability and strength. This joint venture company incorporates global expertise with local experience. The comprehensive, innovative solutions combine the technical expertise and experience of the 119 year old Allianz SE, and in-depth market knowledge and goodwill of Bajaj brand in India. Competitive pricing and quick honest response have earned the company the customer s trust and market leadership in a very short time. This product brochure gives the salient features of the plan only. The policy document is the conclusive evidence of the contract, and provides in detail all the conditions, exclusions related to the Bajaj Allianz Group Superannuation Secure. Bajaj Allianz Group Superannuation Secure (UIN) :116N115V01 Bajaj Allianz Group Superannuation Secure is a Traditional Life Insurance Policy. Insurance is the subject matter of the solicitation. BJAZ-PB-0319/8-Mar-13