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Aviva Group Gratuity Advantage

Aviva Group Gratuity Advantage Plan

In this policy the investment risk in the investment portfolio is borne by the Policyholder


Aviva Group Gratuity Advantage is a Group Unit-Linked product designed for the corporate sector. Aviva Group Gratuity Advantage can also be customized as per individual requirements to provide benefits beyond the statutory obligations.

The plan aims to provide:

  1. A lump sum fund to the employees or their dependants
  2. Tax benefits to the employer
  3. Protection against the risk of death - free flat amount of Rs.1,000 in case of death while in service. The master policy holder has option to choose higher sum assured also.
  4. Flexibility to invest in various unit linked investment funds
  5. The option of making / transferring the past service contributions
  6. Actuarial and administrative support, if required


  1. Master Policyholder: Employer/Trustees
  2. Coverage: The minimum group size is 10 members
  3. Duration of Life Cover: This is a one-year contract, which is renewable every year.
  4. Entry age: 18 to 74 years (last birthday)
  5. Minimum Contribution: Rs 1,00,000 at inception
  6. Minimum Sum Assured : Rs 1,000 per employee
  7. Maximum Sum Assured: Rs 1 Crore per employee
  8. Funds Available: 7 Fund options available
  9. Reinstatement period: 5 years from date of lapse, post which the scheme gets terminated

What is the amount payable to the employee (member) on death, retirement, resignation / termination of employment?

  1. On death, retirement, resignation or termination of a member, the Master Policyholder will be paid an amount equivalent to the amount payable to the member as per the Gratuity Rules of the company, by canceling the units of equivalent amount from the Master Policyholder's account
  2. On death of a member, an additional amount equal to the sum assured of that particular member is paid
  3. The Master Policyholder can get the units cancelled from the various funds as per their choice. If the allocation proportion for cancellation of units is not specified by the Master Policyholder, the allocation proportion last chosen by the Master Policyholder for the purpose of investing contributions, will be used

What is the organisation going to get?

Tax Benefits

  1. As per the current provisions of the Income Tax Act, 1961, the following tax benefits are available in case of an approved Gratuity Fund:
  2. The contributions / premiums paid by an employer in respect of an employee upto 8.33% of his / her salary, in a financial year, are treated as an expense for tax purposes in the year of payment
  3. The gratuity received by the employee upto half month's average salary for each year of service, subject to a maximum of Rs. 10,00,000/- is exempt under Section 10(10)
  4. The benefits paid on death are exempt from tax

"Tax benefits are subject to change"

What are the charges applicable?

  1. Fund Management Charge  (to be applied on the fund while calculating NAV on a daily basis)
  2. Surrender Charge 
  3. Allocation Charge
  4. Switching Charge
  5. Mortality Charge
  6. Goods & Services Tax

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UIN: 122L090V03

Advt No: Aug 14/20