ING Vysya Life Insurance, the Bangalore-based joint venture between the ING Group of Netherlands, Vysya Bank and GMR Technologies and Industries, today announced a 5 per cent annual bonus for its policy holders.
ING Vysya said the cash bonus is an innovative feature of ING Vysya Life Reassuring Life (endowment plan) and Maximising Life (money back plan) products where the policyholder gets an annual cash dividend as a return on the premium paid. The 5 per cent cash dividend is tax free under Section 10D of the IT Act.
The company has also declared a 4 per cent reversionary bonus on the Fulfilling Life (anticipated whole life plan) and Rewarding Life (whole life plan) products on which reversionary bonuses are applicable.
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Reversionary bonus is added to the Sum Assured of the policyholder and paid out on maturity of the policy. Fulfilling Life combines money back facility and whole life cover and a simple reversionary bonus feature.
The Rewarding Life product is a whole life plan with a compounding reversionary bonus feature, which ensures that future bonuses are applicable on the enhanced Sum Assured of previous years bonuses.
ING Vysya Life managing director and chief executive officer Ton van der Star said that the company reviews every year the bonuses declared to those policyholders who are eligible to participate in the profits of the Company.
The amounts of bonuses declared are based upon the long-term sustainability and financial outlook of the Company. During the first year of operation, the company did not project any bonus.
After its first year of operations, ING Vysya Life has a portfolio of four products and four riders. The company has commenced operations in 10 cities and plans to expand to another six locations before the end of the year.