The Employee Deposit Linked Insurance of ING Vysya Life Insurance is a deposit link insurance of the department of provident fund. It gives an extended and enhanced insurance cover to the employees and also reduces the costs. It offers high life cover without any link with the provident fund balance.
The main features of Employee Deposit Linked Insurance of ING Vysya Life Insurance are:
- The policy is available in a scheme of 1 year renewable term assurance plan.
- The eligible group of this plan is all employer employee groups contributing to Provident Fund.
- It provides a cover limit of minimum Rs.62000/- and maximum Rs.1, 50,000/-.
- It is mandatory for all members of provident fund to participate.
- The minimum entry age of the policy is 18 years.
- The maximum entry age of the policy is 64 years in case of last birthday but could be increased in special cases.
The main advantages of Employee Deposit Linked Insurance of ING Vysya Life Insurance are:
- Insurance benefit remains higher than the actual balance of Provident Fund of the employee.
- Premiums are based on age and not on level of monthly wages. This makes the premiums lower than the total contributions which are to be paid to Regional Provident Fund Commissioner under A/c 21.
- Tax exemption - Premiums paid by employer are treated as normal business expenses for Income Tax purposes.
- Claim settlement is faster and procedures are simpler.
- Insurance cover can be provided up to Rs.1, 50,000/-.
- Premium paid for Employee Deposit Linked Insurance under Employee Provident Fund Miscellaneous Provisions Act is not treated as perquisite vide Sec 17(2)(v) of IT Act, 1962.