Shriram Life Insurance launches Shriram Pension Plan

Company Brief

New Delhi, September 01, 2009

Shriram Life Insurance Co. Ltd. the Joint Venture between the Shriram Group and Sanlam, a leading insurance company of South Africa, today, announced the launch of Shriram Pension Plan to help its clients ensure comfortable paychecks for themselves post-retirement. The Pension Plan approved by IRDA, is a Unit Linked Premium Plan with features such as ‘Zero Sum Assured’ (no life cover provided), ‘Auto Transfer Option’, also offers low risk fund like ‘Secure plus’ (a debt linked fund for those desiring stability) and ‘Tyaseer fund’, a Shariah friendly investment fund.

The Shriram Pension Plan also gives its clients a unique feature that no life cover is provided, which provides clients who do not require further life cover (or do not qualify for life cover for medical reasons) with the option of a savings only vehicle and a better focused investment approach.

Mr. Gerhard Joubert, Chief Executive Officer – New Channel, Shriram Life, said, “With Shriram Pension Plan the Company aims to provide its clients varied options to invest their money so that they can receive maximum returns in their future. The client can choose a combination of funds in a fixed percentage according to the changing market conditions. Our product is only for pension seekers and should not be confused in any manner with a life insurance cover concept, therefore no life insurance cover is provided, it is a savings only vehicle.

The Shriram Pension Plan gives clients an option to invest not less than 90% in stocks and shares. The client can also switch from one fund to another fund twice a year without any charge. Our constant motive is to allow our clients to live their post retirement period in peace and comfort. We have devised various tools that will help our clients gain maximum benefits out of our diverse investment fund portfolio.”

The plan also offers the ‘Tyaseer fund’ which is a Shariah friendly investment fund that looks to maximize the potential return from investments in stocks and shares but adhering to ethical guidelines and restricting investments to stocks included in the Nifty Shariah Index.

The second major feature under the plan is ‘Auto Transfer’, which reduces the risk of investing the full premium into a fund with a volatile NAV by allowing premiums to be invested in a low risk fund (‘Secure Plus’) and gradually transferring the money into the chosen investment portfolio. This works as follows: the client can choose 6 to 12 month Auto Transfer Option to invest regular premiums. If the client for example opts 12 Months Auto Transfer Option, 1/12th of the allocated premium will be invested in chosen fund and the balance will be invested in the Secure Plus Fund. One month later 1/11th of the fund in the Secure Plus fund will be transferred to the chosen fund and the process will be continued until all funds in the Secure Plus Fund are transferred. This process will be repeated as and when premium is received.

The plan allows the client to choose the premium amount, frequency of payment and payment term, flexibility of reducing premiums within limits or adding top-up premiums as and when one wishes. The premium amount can be paid yearly, half yearly, quarterly and also by monthly mode through ECS in accordance with the convenience of clients. Furthermore, it also offers a wide choice of investment options which can be beneficial for clients in a long run.

The Shriram Pension Plan offers clients an option to withdraw their units partially after the third policy anniversary. The units withdrawn should be at least Rs 10,000 and this facility is available twice a year without any charge (after 5 years from policy inception).

Being a pension plan, clients will also enjoy tax benefits under section 80 CCC of the Income Tax Act, 1961

For further information, please contact:

Vaishnavi Corporate Communications

Bhavya Suri

Mobile: 9871772454

Email: bhavyas@vccpl.com