Life Insurance Corporation of India (LIC) has introduced a new insurance product aimed at helping employers provide post-retirement medical benefits to their employees.
The scheme, which came into effect on May 02, 2023, offers a fixed life insurance payout (sum assured) to each member of the group coverage program. The Group Post-Retirement Medical Benefits Scheme is a non-linked, non-participating, life, group savings insurance product that offers a fixed life cover benefit (sum assured) to each member of the group coverage program.
Eligibility and Benefits of the Scheme
The scheme is open to any employer with 50 or more employees who wish to contribute to their employees’ benefits. One of the main advantages of the Group Post Retirement Medical Benefit Scheme is that a sum insured will be paid if a member passes away while still in service before retirement. Additionally, post-retirement medical benefits will be provided to members according to the scheme rules when they retire or leave their position. The scheme also offers a fixed Life Cover Benefit (Sum Assured) to each member.
Eligible family members of employee members may also receive post-retirement medical benefits, subject to the scheme rules and the availability of funds in the group policy account. The scheme is open to any company looking to contribute to their employees’ benefits.
Compliance with Regulatory Requirements
LIC, in a regulatory filing, stated that the new product launch is in line with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This is the twelfth group product and the second group insurance scheme launched by LIC.
Benefits for Employers and Employees
The Group Post Retirement Medical Benefit Scheme is expected to be beneficial for employers who want to provide post-retirement medical benefits to their employees. It will provide a financial safety net to employees, ensuring that they have access to post-retirement medical benefits when they need them. Additionally, it will help employers to fulfil their responsibilities towards their employees, enhancing their employees’ loyalty and job satisfaction.
Overall, the Group Post Retirement Medical Benefit Scheme is a welcome addition to the range of employee benefits offered by LIC. It is a cost-effective and efficient way for employers to provide post-retirement medical benefits to their employees, while also ensuring that they remain compliant with regulatory requirements. This scheme will go a long way in providing financial security to employees and their families, giving them peace of mind during their retirement years.
