Group Term Premium Refund Insurance Scheme

This is a special type of Group Term Life Insurance Scheme which provides for the stated sum assured on death of an insured while in service (except suicide in the first year of insurance coverage and AIDS) with provision of Premium Refund in case of survival of an insured up to retirement age or maturity.

Benefit under GTR Scheme:

Death Benefit: Payment of sum assured on death of an insured while in service, for any reason (except suicide in the first year of insurance coverage and AIDS) occurring anywhere in the world.

Retirement Benefit: Refund of insurance premium paid till date on account of an insured (in full/partial according to the scheme), except extra premium paid if any, in case of retirement(e.g. 60 years).

Terminal Benefit: Refund of insurance premium paid for an insured (except extra premium paid if any) at the end of contract period (according to the scheme) in respect of all surviving insured, provided they shall have been members of the scheme for full term of the contract (i.e. 10 or 15 years).

Insurance Discontinuation: Payment of surrender value of premium paid (except extra premium if any) for the period of actual membership, if premium payment is stopped after at least 3 (three) consecutive years of payment in respect of an insured, for any reason other than death or retirement.

Few Variants of GTR Schemes:
  • GTR/100-10:
    Group Term Life Insurance Contract for 10 years with option of full Premium Refund
  • GTR/50-10:
    Group Term Life Insurance Contract for 10 years with option of 50% Premium Refund
  • GTR/100-15:
    Group Term Life Insurance Contract for 15 years with option of full Premium Refund
  • GTR/100-60:
    Group Term Life Insurance Contract with 100% Premium Refund at retirement age of 60 years
  • GTR/50-60: Group Term Life Insurance Contract with 100% Premium Refund at retirement age of 60 years
Scope for taking Supplementary Covers:

There shall be scope for taking supplementary covers along with GTR Scheme as described under GT Scheme or later on.

Other important Aspect of GTR Scheme:
Sum Assured As desired by the Employer
Eligibility for Coverage All regular and permanent employees/members of an organization who are in good health and not past 60 years
Contract Period 10/15 Years with renewal option or Contract to run continuously according to type of scheme chosen by Employer
Inclusion of new member Scope for inclusion of new member under insurance coverage at any time during the contract period upon payment of Premium on pro-rata basis.
Exclusion of existing members Scope for exclusion of existing member from insurance coverage at any time during the contract period when surrender value of paid premium is refundable
Premium Payment Premium is payable annually in advance before commencement of risk and subsequently on anniversary date thereof. However, one-month’s grace period is allowed for payment of subsequent premium after the first.
Available Supplementary covers and Benefits.
  • Accidental Death Benefit (AD)
    Double the Sum Assured
  • Permanent & Total Disability (PTD)
    Payment of Full Sum Assured
  • Permanent & Partial Disability (PPD)
    Certain % of Sum Assured
  • Major Disease (MD)
    50% of Sum Assured but maximum of Taka Five Lac
  • Critical Illness
    A Fixed amount up to maximum of Taka Five Lac
Conversion Privilege Scope to take out individual life insurance policy by an insured in case of insurance discontinuation, on special terms-conditions.
Underwriting Requirements A free cover limit is determined for each organization by insurance company. Medical examination reports and tests required for members having sum assured above Free Cover Limit (FCL)
Claim Procedure and Settlement procedure Claim notification to insurance company about death, disability, retirement, discontinuation etc. as per contract within 30 days of incident. Requisite document to be submitted as per contract following notification. Claim settlement made by insurance company as per contract.
Criteria of a Group A group should comprise of a least 10 members
Organization for which GTR scheme suits better:
  • Organizations having minimal employee/member turnover
  • Organizations intending to retain its skilled and dedicated employee through offering such financial benefit.
  • Organization keen to create a better organizational image to reflect its status as an employer.
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