New Delhi, Jan. 5: Om Kotak Mahindra Life Insurance has received the Insurance Regulatory Development Authority’s approval to launch its group gratuity plan.
Om Kotak has also introduced a limited premium payment option plan for its endowment product—the Kotak endowment plan. Legally, any entity with more than 10 employees has to arrange for gratuity plans. In the event of an employee leaving or retiring from the company after a minimum of five years of service, the company is liable to pay a gratuity amounting to 15 days’ salary for each year of service rendered.
The company is all set to roll out a group gratuity policy early next month, sources said.
A new limited premium payment option is a payment flexibility option that can be purchased by a policyholder along with the endowment plan. This plan not only covers the policyholder for a specified term, but also gives the flexibility to choose premium terms for a period in which the policyholder is sure of a secure income.