Page 154 - Group Insurance and Retirement Benefit IC 83 E- Book
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member, the benefit his family will get will at least be 2000 above what they would have
got under the PF Scheme.
In 1994, the death benefit was made equal to the PF balance upto 25000, and in case the
PF balance is above 25000, the death benefit was equal to 25000 + one fourth of the
amount in excess of 25000, subject to a maximum of 35000. So LIC modified it scheme
and offered a graded benefit of 11000 to 37000. It also assured that in case of death of a
member, the benefit his family will get will at least be 2000 above what they would have
got under the PF Scheme.
In 2000, the death benefit was made equal to the PF balance upto 35000, and in case the
PF balance is above 35000, the death benefit was equal to 35000 + one fourth of the
amount in excess of 35000, subject to a maximum of 60000. So LIC modified it scheme
and offered a graded benefit of 5000 to 62000. It also assured that in case of death of a
member, the benefit his family will get will at least be 2000 above what they would have
got under the PF Scheme.
From July, 2010, the death benefit was made equal to the PF balance upto
50000, and 40% of the PF balance in excess of 50000, subject to a maximum benefit of
Rs. 100000. Again it was modified so that the death benefit will be as above or last drawn
salary (with a maximum of 6500) x service with a maximum of 1,30,000, whichever is
higher.
The LIC also offered a flat cover of the maximum of 27000 or 37000 or 62000 or 102000
or 132000 if the employers are willing to pay a little higher premium.
From 2001, with the entry of private players in the life insurance industry, the
competition became more intense, and the private insurers started offering more benefits.
For example they offered a higher cover for each company depending on the age group of
the employees in return for the payment of 51 paise per every hundred Rupees salary to
the insurer. Now many of the insurers including LIC offer this option also, which gets an
