Life Insurance Corporation of India (LIC) has recently introduced the Group Post Retirement Medical Benefit Scheme, aimed at supporting employers to provide post-retirement medical benefits to their employees.
The scheme, which became effective on May 02, 2023, offers a fixed life insurance payout (sum assured) to each member of the group coverage program, and is available to any employer with 50 or more employees.
One of the main benefits of the Group Post Retirement Medical Benefit Scheme is that a sum insured will be paid if a member passes away while still in service before retirement. Moreover, post-retirement medical benefits will be provided to members in accordance with the scheme rules when they retire or leave their position.
In addition, eligible family members of employee members may also receive post-retirement medical benefits, subject to the scheme rules and availability of funds in the group policy account. Each member also receives a fixed Life Cover Benefit (Sum Assured).
The scheme is open to any company looking to contribute to their employees' benefits. LIC, in a regulatory filing, stated that the new product launch is in line with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This is the twelfth group product and the second group insurance scheme launched by LIC.
The Group Post Retirement Medical Benefit Scheme is expected to be beneficial for employers who want to provide post-retirement medical benefits to their employees. It will provide a financial safety net to employees, ensuring that they have access to post-retirement medical benefits when they need them.
Additionally, it will help employers to fulfil their responsibilities towards their employees, enhancing their employees' loyalty and job satisfaction.
