The Life Insurance Corporation of India (LIC) today launched a unit linked gratuity plan and aims to earn Rs 1,000 crore of premium income from the scheme this year. | |
| Christened as Gratuity Plus, the plan is different from the traditional cash accumulation plan as the returns under the plan are linked to the performance of the chosen fund. |
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| Gratuity Plus is suitable for companies, which desire to entrust gratuity fund management to an insurer and wish to have flexibility of choice of investments. |
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| There are a choice of four funds to meet various risk appetites. The four types of funds are bond fund, income fund, balanced fund and growth fund. |
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| Life Insurance Corporation of India manages Rs 15,000 crore of gratuity funds of 30,000 corporate clients. From January 1 to June 15, LIC has earned a premium 710.05 crore from gratuity schemes. |
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| "The existing clients of LIC who have funded their Gratuity liability with LIC have been given the option to switch to the new Gratuity Plus, though immediate switching may not happen", said T S Vijayan, chairman, LIC. |
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