Gratuity is a statutory benefit governed by Payments of Gratuity Act, 1972. Under the Act, it is an additional statutory benefit payable by the employer to their employees after completion of minimum years of service. The minimum level of benefit paid is 15 days’ pay for each completed number of years. The employee is eligible for gratuity benefit, either on:
- Permanent Total Disablement during service
- Death during service
- Resignation from service
The employer can also structure a gratuity benefit that is higher than stipulated in the statutory requirements.
Group Health Insurance
Group health insurance plans are one of the major benefits offered by many employers. These plans are generally uniform in nature, offering the same benefits to all employees or members of the group. Group health insurance plans usually cost less for participants than individual plans that offer the same benefits. This is because the risk is spread over the entire group, rather than one person.
This policy covers the “Hospitalization” of employees and their dependents due to disease/accident (24 hours hospitalization is mandatory).
Group Personal Accident
This policy offers compensation in case of death or bodily injury to the insured person, directly and solely as a result of an accident, by external, visible and violent means. The policy operates worldwide and is a 24 hours cover.
Different coverages are available ranging from a restricted cover of Death only, to a comprehensive cover covering death, permanent disablements and temporary total disablements.
Group Term Life
This coverage will provide a benefit to the beneficiaries if the covered individual dies during the defined covered period. As with other types of group benefits, group term life insurance is generally cheaper than comparable individual policy coverage. For this reason, group term life insurance is often a key component in employee benefit packages.
Such insurance is renewable on a year-to- year basis and does not accumulate in value i.e. no cash surrender value is built up.
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