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EMPLOYEES GROUP SAVING LINKED INSURANCE SCHEME
1. SHORT TITLE :
This scheme shall be known as SJVNL Employees
(Self-Contributory) Group Saving Linked Insurance
Scheme.
2. APPLICABILITY :
Minimum 75% employees from existing strength are
required to participate in the scheme. However, for new
entrants participation is compulsory and will join the
scheme on next anniversary.
3. SCOPE :
The Scheme shall cover all the regular employees of
SJVNL except:
- Lien holders;
- Deputationists.
- Apprentices/trainees, whether engaged under
Company’s own training scheme or under the
Apprentices Act, 1961; and
- Muster roll, daily rated casual, badli,
workcharged or substitute employees.
4. GROUPS OF EMPLOYEES :
For the purpose of this scheme regular employees
have been grouped in the following four categories:
| Level |
Group |
| E2
and above |
Group
I |
| E1,S1
to S4 & W8 to W11 |
Group
II |
| W2
to W7 |
Group
III |
| W1 |
Group
IV |
5. ELIGIBILITY :
Any employee irrespective of his state of health is
eligible to join the scheme without any Declaration of
Good Health or Medical Examination. The only
insurability condition is that the employee should not
be absent on medical grounds on the date of commencement
of the scheme. All employees who have not crossed the
normal retirement age are eligible to join the scheme.
6. ADMINISTRATION OF THE SCHEME :
The Group Saving Linked Insurance Policy shall be
taken from Life Insurance Corporation, Shimla. The
Corporate personnel establishment shall also provide
requisite details and information to LIC. All
correspondence shall be addressed to:
- Sr. Branch Manager,
- Life Insurance Corporation of India, (P&G.S Unit),
- Shimla Division,
- Govind Bhawan opposite Himland Hotel, Circular Road
- Shimla-171001.
The concerned P&A Deptt. will send monthly
statement to Corporate establishment section in respect
of the following.
- Names, designation, date of birth of new joinings,
- Names and designation of the employee(s) who has
left the organization for any reason whatsoever
7. PREMIUM AND INSURANCE COVER :
Monthly premium and insurance cover for each group
is given below:
| Category
of the Employees |
With
out accident benefits |
|
With
accident benefits |
|
| Maximum
insurance cover |
Monthly
Premium |
Maximum
insurance cover |
Monthly
Premium |
| Group
I |
2,80,000 |
280 |
5,60,000 |
297 |
| Group
II |
2,25,000 |
225 |
4,50,000 |
239 |
| Group
III |
1,40,000 |
140 |
2,80,000 |
149 |
| Group
IV |
70,000 |
70 |
1,40,000 |
74 |
8. THE DISTRIBUTION OF PREMIUM :
65% of the contribution/premium shall be treated as
saving and will be eligible for interest compounding
yearly. However, 35% of premium/contribution will be
adjusted towards risk cover
9. INTEREST ON SAVING :
The present rate of interest allowed on saving
portion of premium is 10% compounding
yearly.
10. BENEFITS :
On retirement or resignation, the savings part (Rs.
6.50 per every Rs. 10) accumulated at 10%
p.a. is payable. On death while in service, the risk
insurance amount is also payable to nominee as declared
for the purpose of P.F. benefits.
11. TAX BENEFITS :
Employee’s total contribution, savings as well as
risk premium is entitled for income-tax rebate under
Sec. 88 of the Income Tax-Act. The entire claim amount
including interest earned payable on retirement or
leaving the service or on death is free from income-tax.
12. INFORMATION REQUIRED TO BE FURNISHED TO LIC :
- Name, Designation, Date of Birth of the employee
who wishes to participate.
- Normal retirement age.
- Death experience in the last three years under the
four different categories.
- Willingness of the employees to pay contribution
regularly to LIC through SJVNL by deducting the
amount from the salary of the respective employee
and remit to the LIC and maintain the record.
13. PREMIUM
-
The premium shall be
paid by the employees through concerned F & A
Deptt. The concerned F & A Deptt. will send
consolidated statement of premium recovered and due
during the month to Corporate F & A Deptt.
Shimla before 7th of each month. The Corporate F
& A Deptt. Shimla will remit total premium to
LIC on or before 20th day of each calendar month.
-
In case the salary of an
employee is not disbursed, for any reason, the
premium will be remitted to LIC by SJVNL for a
period not exceeding three months, and shall be
recovered from the employee’s salary/dues at the
earliest. Thereafter the individual employee shall
make necessary arrangement for payment of premium.
In case premium is not paid to LIC in time, the
insurance risk cover shall cease to exist as per
terms of LIC.
Consent for Participating in SJVNL Employees
(Self-Contributory) Group Saving Linked Insurance Scheme
(download
in
pdf format 
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