Key to a successful business is keeping your employees motivated. Happy and secured employees work better, which in turn reduces the employer’s tension. Group Insurance is an insurance which covers a group of people (like employees of a common employer or professionals in a common group).
OVERVIEW
In today’s competitive market scenario, it’s getting tougher to attract and retain customers, let alone aiming for market leadership. Kotak Complete Cover Grouplan can provide your institution the required value-add to differentiate your products and make them more competitive. This plan can be customized to match your product characteristics as much as the needs of your customer and your institution.
The Plan provides life cover to a group of borrowers of the credit institution (banks, retail finance providers etc.) with the Life Assured being the borrower and the Credit Institution being the beneficiary to the extent of the outstanding loan amount. It is a non-participating single-premium plan and can be customized to cover all types of loans and repayment terms. The plan can be mandatory (all members join) or voluntary (subject to certain conditions). In the unfortunate event of death of the borrower during the term of the policy, the outstanding loan amount would be repaid by Kotak Life Insurance, relieving the borrower’s family of the loan liability and eliminating risk of loss due to death of the borrower to the Credit Institution.
In the event of death of a borrower, the outstanding loan amount would be paid by Kotak Life Insurance as a death benefit to the credit institution.
In the event of prepayment of the loan, a portion of the single-premium paid will be refunded. Further details of the premium refund formula are available upon request.
ADVANTAGES
- TO THE CREDIT INSTITUTION
- Eliminates the risk of default in the event of death of the borrower
- Facilitates competitive pricing for credit products and ensures a differentiating edge over your competitors
- Extremely cost-effective because of group pricing dynamics
- Hassle-free administrative procedures
- TO THE BORROWERS
- The borrower’s family is relieved of the financial burden of paying the outstanding loan amount
- The pooling of risk (group cover) allows the cover to be provided at a low cost
- Hassle-free and convenient documentation process
- Relaxed medical examination norms (subject to applicable conditions)
- The life cover is available 24 hours a day, 7 days a week, anywhere in the world
ELIGIBILITY REQUIREMENTS
- The minimum age at entry is 18 years
- The maximum age at entry is 55 years
- The maximum ceasing age of the plan is 60 years
MAXIMUM COVER
The maximum cover allowed per member will vary from group to group up to a maximum of the original value of the loan.
The cover can be structured to meet the Credit Institution & borrower’s needs. Generally it is expressed in terms of Original Loan Amount or Outstanding Loan Amount on the date of death etc. The choice of cover will depend on the requirements of the credit institution, the cost constraints and the type of scheme.
MAXIMUM GROUP CAPACITY
At least 25% of the borrowers in the group should opt for the life cover subject to a minimum of 250 members. Kotak Life Insurance provides the option of compulsory participation for the borrowers of credit institution as well. There is no restriction on the maximum number.
PREMIUM PAYMENTS
KCCG is a single premium policy. The premium is payable once at the commencement of the policy by the credit institution.
BENEFITS
For borrowers under 40 years of age, the Critical Illness Benefit can be added to the basic KCCG policy. Kotak life insurance’s Critical Illness Benefit provides for payment of a lump sum to the borrower in the event of diagnosis of any of 12 critical illnesses. Payment of the Critical Illness Benefit causes the basic life cover and the rider cover to cease.
Additional information is available on the Critical Illness Benefit upon request.
TAX BENEFITS
- • The premium paid by the credit institution could be considered as part of business expenses and may be tax deductible
- • Any premium paid by a borrower in his/her capacity as an individual will be eligible for tax deduction under section 80(C) of the Income Tax Act, 1961
- • Benefits received by the borrower’s nominee are tax free under section 10(10 D) of the Income Tax Act, 1961
Tax benefits are subject to change in tax laws Please consult your tax advisor for details.
SERVICES
- A dedicated Customer Relationship Manager for effective initiation and regular servicing
- Comprehensive operational and post-launch support from centralized Group Operations Team
- Centralized Customer Support for query handling on an ongoing basis
TERM
The insurance cover can be for any term up to a maximum of 30 years.
TERMINATION OF COVER
The cover for a member will cease on the earliest of:
- The date on which the loan is repaid
- The date the borrower attains the ceasing age as in the policy contract
- The date of scheduled expiry of the loan as per the contract
- The date on which the contract terminates as per the provisions of contract
EXCLUSIONS
- No claim arising from the death of a member due to any cause other than an Accident shall be payable where such death occurs within 90 days from the date of his/her commencement of cover
- Any claim arising as a result of a member committing suicide within one year of commencement of his/her cover will be disallowed.
The Policyholder is offered a 15 days free look period, from the date of receipt of this policy. During this period the Policyholder may choose to reconsider his/her decision to hold this policy, or may choose to return the same within the said 15 days. Should the Policyholder choose to return the Policy, he/she shall then be entitled to a refund of the premium paid after adjustments for expenses for medical examination, stamp duty and proportionate risk premium for the period of cover.
Service Tax and education cess shall be levied on all applicable charges as per the prevailing tax laws and/or any other laws. In case of any statutory levies, cess, duties etc., as may be levied by the Government of India from time to time, the Company reserves its right to recover such statutory charges from the policyholder(s) either by increasing the premium and / or by reducing the benefits payable under the plan.
PREMIUM TABLES
Kotak Complete Cover Grouplan UIN 107N018V02 Car Loan for employees
Interest rate-11% pa
Rate per mille (excluding of service tax)
|
1 |
2 |
3 |
4 |
5 |
||
|
18-30 |
1.8344 |
2.5281 |
3.2195 |
3.9083 |
4.5985 |
|
|
31-35 |
1.9658 |
2.7591 |
3.5782 |
4.4252 |
5.3023 |
|
|
36-40 |
2.4676 |
3.5589 |
4.6959 |
5.8722 |
7.0877 |
|
|
41-45 |
3.2325 |
4.7381 |
6.3311 |
8.0198 |
9.8122 |
|
|
46-50 |
4.8065 |
7.2159 |
9.7973 |
12.5582 |
15.5058 |
|
|
51-55 |
7.5876 |
11.5293 |
15.7302 |
20.1921 |
24.8933 |
The Average Sum Assured assumed to arrive at the Premium rates is Rs. 3,00,000
These are indicative rates.
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