Kotak Gratuity Plus Group Plan and Policy
Kotak Gratuity Plus Group Plan and Policy - Gratuity is a obligation for any employer to retain talented individuals in their company. A good gratuity plan can reduce business costs and help meet the funding of gratuity payments. This can also give an employer great tax benefits applicable for gratuity funds. The Kotak Gratuity Plus Group Plan is a unit linked plan that will help you maintain and payout you gratuity obligation in an effective manner and also help you get resources to maintain business as usual.
Eligible - Kotak Gratuity Plus Group Plan
Particulars |
Details |
Group |
Employee and Employer groups |
Group Size |
10 employee minimum No limit for maximum |
Age of Entry |
Minimum 18 years Maximum 74 years |
Maturity Age |
Maximum 75 years |
Contribution Premium |
At inception Minimum Rs. 2,00,000 Maximum No Limit |
Contribution Frequency |
Yearly, Half-yearly, Quarterly, Monthly |
Sum Assured |
Minimum Rs. 1,000 No limit for maximum |
Policy Term |
1 year which is renewable |
Key Features - Kotak Gratuity Plus Group Plan
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Long term investment growth with market linked returns: With this you can invest in a unit-linked investment where your moneys of gratuity will fall into various market instruments. This enables an employer to reward his talented employee with a great gratuity plan, without affecting the moneys of the business.
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Choose from a choice of 6 different fund options to suit the risk and investment objective you are comfortable with.
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Along with a great gratuity plan by kotak life, get life cover for your employees, and if in an unfortunate event of their demise the life coverage will be paid to their families.
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Get your funds increased to a higher level with regular additions to your scheme the unit addition will be in a percentage format which will get added to the fund at the beginning of every calendar month.
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Gratuity is payable to the member on survival of the policy as per the scheme rules.
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Switching is allowed between funds during the policy term, there are no charges for these switches.
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Redirection of future contributions into other funds can be done as well.
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Partial withdrawal is not allowed under this plan.
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Surrender can be done by giving a month’s notice to the company. At the end of the month the payout will be applicable to be paid out.
Benefit and Advantages - Kotak Gratuity Plus Group Plan
The benefits for the employee:
The employee is eligible under section 10 (10D) of the Income Tax Act 1961.
- Death benefits payable to the employees are exempt from tax.
- The death benefit is minimum sum assured of Rs. 1, 000 + Gratuity settlement as per the Trust Rules.
- The gratuity settlement will be paid as per the rules of the Trust
- Government employees at the time of retirement get their gratuity payments which are completely tax free.
- Non-government employees at the time of retirement get their gratuity payments and get tax-exempt for an amount of up to Rs. 10, 00, 000.
The benefits of the employer:
- Any earnings from investments made in the funds by an approved Gratuity fund is exempt from taxes as per Section 10(25)(iv) of the Income Tax Act, 1961.
- Any approved gratuity fund contributions is deductible under section 36 (1)(v) of the Income Tax Act, 1961, if they meet the conditions of the section.
The death benefit, if a member dies the payment will be as per Trust rules when it comes to Gratuity settlement as well as the sum assured.
How Does The Plan Works? - Kotak Gratuity Plus Group Plan
The employer will create a trust and appoint trustees in order to maintain the trust. The employer will also make contributions towards this trust on actual valuation. The employer makes investment within 6 different options of funds, once the funds start to receive contribution the units are allocated. When the employee retires or resigns after the selected policy term. The company will redeem the units made in the investment funds to give the employee the gratuity benefit. If the employee has been in an unfortunate event and dies the employee will be paid an additional sum assured by the employer which is a minimum of Rs. 1, 000
The investment of fund options:
- Group Balanced Fund - which has a moderate risk-return profile
- Group Bond Fund - which has a conservative risk-return profile
- Group Floating Rate Fund - which has a conservative risk-return profile
- Group Gilt Fund - which has a conservative risk-return profile
- Group Money Market Fund - which has a secure risk-return profile
- Group Short Term Bond Fund - which has a conservative risk-return profile
Investment options:
Fund name |
Government/ Government Guaranteed Securities |
Other Debt securities |
Equity |
Short term Investments such as money market instruments, short term bank deposits, call money and cash |
Group Balanced Fund |
20% - 70% |
20% - 70% |
30% - 60% |
0% - 40% |
Group Bond Fund |
0% - 75% |
25% - 100% |
- |
0% - 40% |
Group Floating Rate Fund |
0% - 75% |
25% - 100% |
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0% - 40% |
Group Gilt Fund |
80% - 100% |
- |
- |
0% - 40% |
Group Money Market Fund |
- |
- |
- |
100% |
Group Short Term Bond Fund |
0% - 50% |
25% - 75% |
10% - 75% |
10% - 75% |
Kotak Group Life Insurance Plans and Policy |
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| Group Gratuity/Leave Encashment | Kotak Gratuity Group Plan |
| Kotak Gratuity Plus Group Plan | |
| Kotak Secure Return Employee Benefit Plan | |
| Kotak Leave Encashment Group Plan | |
| Group Superannuation | Kotak Secure Return Superannuation Plan |
| Kotak Superannuation Group Plan – II | |
| Group Term | Kotak Term Group Plan |
| Kotak Credit Term Group Plan | |
| Kotak Group Secure | |
| Kotak Group Secure One | |
| Kotak Raksha Group Micro Insurance Plan | |
| Group Credit | Kotak Group Assure |
| Kotak Group Shield | |
| Kotak Complete Cover Group Plan | |
| Kotak Protection Plans |
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| Kotak Saral Suraksha Protection Plan |
| Kotak Income Protection Plan |
| Kotak Term Protection Plan |
| Kotak Preferred Term Protection Plan |
| Kotak Retirement Plans |
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| Kotak Lifetime Income Plan |
| Kotak Premier Pension Plan |
| Kotak Child Life Insurance Plans |
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| Kotak Headstart Child Assure |