LIC Term Insurance plan of 50 lacs and 20 lakhs for BSNL employee towards GTI 2023 available at ERP service portal or BSNL ESS login with new lowest online premium amount, check the new sections covered under Income Tax act for premium and Insurance claim…
BSNL Employee Term Insurance
All the employees Executives and Non Executives are well known about the recently launched BSNL GTI i.e. employee Term Insurance offered from LIC with new MOU, applicable for officers with renewal and as a new launch for Non Executive employee of BSNL
What is Term Insurance and GTI applicable for BSNL employees?
- Most of us don’t know about what is Term Insurance and what is the specialty. The word TERM itself gives the answer as it is applicable for a period. Term Insurance plan is one of the most important pure life cover for a person to provide the largest financial assistance to their family members even after the demise of the employee/business person or normal householders.
- GTI is Group Term Insurance which cover the life of the eligible participant as per the new special premium rates offered to the employee of the organization decided at the time of agreement between BSNL and Insurance corporation.
Is this newly introduced employee Term Insurance offered by BSNL directly?
- This is a new online plan offered only to the employees of Bharat Sanchar Nigam Limited from Life Insurance Corporation of India under the new guidelines of GTI of IRDA with 50 Lakhs Term Insurance cover for every policy holder.
Why LIC GTI needs for BSNL employee?
- The offered GTI is the most valuable for BSNL employee, because the employees of the corporation are involved in technology based incentric works at various locations, if anything happens, it causes a huge loss to their family memebers, so to indemnify the family from the loss due to the death of insured, this BSNL and LIC Group Term Life Insurance is more helpful.
Covered BSNL employees under new LIC Term Insurance
- In the first phase, Bharat Sanchar Nigam Limited processed this term insurance plan as best for all the executive employees of BSNL Direct Recruitment or absorbed from Department of Telecommunications. In the second phase from 01.03.2021, this will be extended for BSNL Non Executive employees also.
Difference between normal Insurance and BSNL employee Term Insurance Plan
- Normal life insurance plans offered by any company under IRDA control will provide conventionally which may guarantee return to the policy holder at the maturity, but the Term Insurance or Group Term Insurance will pay a lump sum amount (minimum of 10times than conventional policies) to family members, if sudden death happens to policy holder.
The following are the total observations found towards employee Group term insurance plan offered by BSNL and LIC.
BSNL Employee Term Insurance Premium
| Particulars | For Executive | For Non Executives |
|---|---|---|
| Date of commencement of BSNL GTI Policy | 01.03.2023 upto 29.02.2024 | 01.03.2023 upto 29.02.2024 |
| Maximum Term Insurance Coverage | Rs. 50 Lakhs | Rs 20 Lakhs |
| Premium Payment | Annually till retirement | Annually till retirement |
| Annual Premium rate (Born on or after 15.09.1972) | Rs. 12980 | Rs. 3776 |
| Annual Premium rate (Born before 15.09.1972) | Rs. 45430 for 50Lakhs | Rs. 18172 |
| Rs.18172 for 20lakhs | ||
| Online Application window closed on | 17.02.2023 | 17.02.2023 |
- As per the agreement between BSNL and LIC, the premium for each term insurance policy is being provided at very low rate. i.e. Rs. 9440 per year upto 50years of age and Rs. 45430 as a yearly premium amount for 50 Lac Term insurance.
- Term premium amount in full or part will not refunded by LIC or BSNL in any cause for closure or on maturity.
- The premium amount of BSNL employee term policy will slightly differed for every 3 years as per the Life Insurance Corporation.
- Premium payments are not allowed directly by the policy holder.
- After subscription of LIC Term insurance policy in ERP portal or BSNL employee online ESS login, PSU will deduct the corresponding premium amount from employee salary and remits to Life Insurance Corporation as per the policy date.
- If any changes in premium amount after every 3years, the same will deduct from the salary.
Medical test for Group Term Insurance
Actually, all the companies will provide the Term Insurance plan for above 15 Lakhs only after completion of Medical tests, but now for this BSNL employee term insurance there is an exemption of Medical test even above 50 years of age.
BSNL GTI Claim and Term Insurance Plan Coverage
- Only the death claims are covered in this best plan, because it is term insurance designed to cover only death of any kind like Sucide or Accidental, Natural calamities or Natural death caused by anykind of illness, but for suicide it will cover as per the conditions and also for disabilities, this online GTI policy is not covered.
- The maximum age covers in this term Insurance Plans for all BSNL employees is 60 (upto Retirement).
- No extension will provide after retirement.
- If any employee of BSNL resigned or Voluntarily retired from the services before superannuation, the subscribed LIC Term Insurance policy also closed the coverage.
Term Insurance Claim Process by BSNL employee
There is no separate claim process for Term Insurance directly by the employees to LIC of India as like normal individual in online or offline. In case of death, the claim documents should submit through BSNL and it may settle by LIC directly as per the nominees share entered in BSNL records.
Taxation on Term Insurance Plan
- The paid online term insurance premium of BSNL employee in every year is eligible for income tax section 80C which should download from the portal.
- In case of death, the claimed amount of 50 Lacs given to nominees of his deceased person family will also get tax free benefit under section 10
Whether a BSNL employee can avail 1 Crore term insurance cover with GTI?
- It is not possible at present, As per the MOU of LIC, the maximum amount to be covered under BSNL GTI for an employee is 50 lacs. Apart from 50 lakhs term insurance, employee has to opt for individual Term Insurance Policy of any company if required.
If you opt for employee Group Term Insurance policy of LIC from BSNL ESS portal, then the PSU will take care of your policy upto retirement or resignation in the department, So every employee will have to opt for this Group Term Insurance policy upto 17.02.2023 with two options for 50 lakhs with yearly premium and for 20 lakhs allowing quarterly premium through ERP eportal or ESS login to provide best security for their family members in case of any demise happened.
Is there any Link between GSLI and LIC GTI for BSNL employee?
There is no link between existing GSLI and new term insurance policy for any employee. Both will continue as usually.
If employee suspended, will the policy be continued?
Yes, upto the premium payment provided by BSNL and till his termination from PSU, the given group term policy of LIC will continue even after suspension of the employee.
How the premium of Group Term Insurance has to paid for BSNL executive who is on deputation?
In respect of those BSNL employees who is on deputation to other organizations and opted for LIC Group Term Insurance, the borrowing organizations are requested to collect the amount of Annual / Quarterly premium from such executives in the form of Bank Cheques and forward the same to BSNL for remittance.
Employees after Post VRS will continue the insurance or not?
Employees, who are not applied for BSNL Voluntary Retirement Scheme 2019 and already under LIC Term Plan will only continue up to their retirement.