LM-IND-Employee_benefits

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EMPLOYEE BENEFITS IN INDIA - the emerging trends

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Population in excess of 1 Billion 35 States and Union Territories 24 Languages 7 Religions 3000 communities

INDIA : 

INDIA Diversity in language, culture and religion Does this diversity extend to employee benefits? Yes & No

Overview of Employee Benefit Scenario In India : 

Overview of Employee Benefit Scenario In India Employee Compensation Salary Allowances & Bonus Employee Benefits

Employee Benefits – Insurance Co’s viewpoint : 

Employee Benefits – Insurance Co’s viewpoint Employee Benefits Insurance Retirement Defined Contribution Defined Benefit Life Accident Mediclaim Leave Encashment Gratuity Superannuation

Mediclaim Insurance : 

Mediclaim Insurance Reimbursement of medical expenses following hospitalization Cash less hospitalization facility available under certain plans Tax deduction available for the business Accident Insurance Can offer compensation for any/all of the following: Accidental death, disability Medical expenses for treatment post accident List of exclusions BOTH BENEFITS ARE OFFERED BY NON-LIFE INSURANCE COMPANIES

Life Insurance : 

Life Insurance Benefit payable on accidental/natural death (limited exclusions) Convenient eligibility conditions Additional Optional riders PROVIDED BY LIFE INSURANCE COMPANIES Life Insurance – Trends Monopoly of one single company so far Increasing popularity amongst employers/ employees General cover is about 3 to 5 times the gross annual salary Companies with huge staff strength opt for profit-sharing

Leave Encashment –Defined benefit : 

Leave Encashment –Defined benefit For whom? If company offers encashment of leave, all employees What benefit? Will be based on the company policy. Normally x days salary for each accumulated day of leave How Funded? Institute of Chartered Accountants of India require that a provision be made for the liability. No special tax benefits for self-funding through a trust Insurance plans available to manage the funds

Gratuity – Defined Benefit : 

Gratuity – Defined Benefit For whom? Engaged in Factories, Mines, Plantations, Railways, Shops and establishments notified by Government In service for 5 successive years What benefit? 15 days wages for each year of service Maximum limit Rs 3,50,000/ 7 days wages per season for seasonal occupation How Funded? Can be funded our unfunded. Special tax concessions if funded through a trust or insurance company

Superannuation – Defined Contribution/ benefit : 

Superannuation – Defined Contribution/ benefit For whom? Non-mandatory, defined by company policy What benefit? Can be defined benefit(certain formula of last drawn salary) /defined contribution(certain %age of salary every month contributed to a fund) Can be different for different grades How Funded? Can be funded our unfunded. Special tax concessions if funded through a trust or insurance company

Retirement Benefits - Trends : 

Retirement Benefits - Trends Only one life insurance company in the market till 2000 Offered a cash-accumulation conventional scheme More and more companies now funding through Insurance Unit-linked – a preferred platform Pensions benefits - from Defined Benefit to defined contribution

HDFC STANDARD LIFE INSURANCE : 

HDFC STANDARD LIFE INSURANCE HDFC SL is Insurope’s network partner in India

Employee Benefits – Insurance Co’s viewpoint : 

Employee Benefits – Insurance Co’s viewpoint Employee Benefits Insurance Retirement Defined Contribution Defined Benefit Life Accident Mediclaim Leave Encashment Gratuity Superannuation

Employee Benefits – Insurance Co’s viewpoint : 

Employee Benefits – Insurance Co’s viewpoint Employee Benefits Insurance Retirement Defined Contribution Defined Benefit Life Accident Mediclaim Leave Encashment Gratuity Superannuation

Contact Details : 

Contact Details Sanjeev Kapur Head - Group Sales (+91) 98203 48755 Sanjeevk@hdfcinsurance.com Vijay Vaidyanathan Manager – Group Sales (+91) 98206 11998 vijayv@hdfcinsurance.com