Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points
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Group insurance schemes provide insurance to a group of people under one single master policy. The individuals who get insurance cover under the policy are referred to as 'members' of the group insurance scheme.
The employees who get covered under group insurance are issued certificate of insurance.
Free Cover Limit - the amount of?cover?that each employee belonging to the group scheme qualifies for, without undergoing any medical check-up. It is also called as No-Evidence Limit
Gratuity = ((Basic + DA) X 15 days X number of years of service) 26
Only those employees who are on direct payroll of the company come under the purview of Gratuity Act. The employee needs to complete 5 years of continuous service in the organisation, to be eligible for payment of gratuity.
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