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Pension and provident funds exist for the benefit of their members, who are workers and pensioners. If a pension fund member retires, the member gets one third of the total benefit in a cash and the other two-third is paid in the form of a pension over the rest of the member's life. A provident fund member can get the full benefit paid in cash.
Pension and provident funds exist for the benefit of their members, who are workers and pensioners. If a pension fund member retires, the member gets one third of the total benefit in a cash and the other two-third is paid in the form of a pension over the rest of the member's life. A provident fund member can get the full benefit paid in cash.
Pension and provident funds exist for the benefit of their members, who are workers and pensioners. If a pension fund member retires, the member gets one third of the total benefit in a cash and the other two-third is paid in the form of a pension over the rest of the member's life. A provident fund member can get the full benefit paid in cash.
The main difference is that if a pension fund member retires, the member gets one third of the total benefit in a cash and the other two-third is paid in the form of a pension over the rest of the member's life. A provident fund member can get the full benefit paid in cash.
1-How general insurance company handle gratuity and provident fund..?
Provident fund consists of funds which are contributed by employers and employees and sometimes only by employers. These funds gain interest when the insurance company invest them. Money goes out of the fund to pay for benefits and also for the expenses of running the fund. The money in the fund belongs to the fund and not to the people who contribute.
How Does A Pension Or Provident Fund Work?
Employers contribution Employees contribution Provident fund How Does A Pension Or Provident Fund Work?
But pension and provident funds exist for the benefit of their members, who are workers and pensioners. Usually it is compulsory to become a member of a fund. It means that a worker does not have a choice that whether he wants to become a member or not. He has to become the member of the fund and the worker cannot get money back out of the fund except as benefits according to the rules of the fund.
Types Of Benefits
Normally a fund has these kinds of benefits: Withdrawal benefits, paid to workers who resign or are dismissed Retrenchment benefits, paid to workers who are retrenched Retirement benefits, paid to workers when they retire Insured benefits, including benefits paid to a worker who is disabled and benefits paid to the dependants of a worker who dies.
An insurance company's revenue is generated from two sources: (1) premium income for policies written during the year; (2) investment income resulting from the investment of both the reserves established to pay off future claims and the P&C's surplus (asset less liabilities).
Major Sources of Revenue for an Insurance Company
Profit is determined by subtracting from the revenue for the year (as defined above in question 1a) each of the following items: (1) claim expenses: funds that must be added to reserves for new claims for policies written during the year; (2) claim adjustment expenses: funds that must be added to reserves because of underestimates of actuarially projected claims from previous years; (3) taxes; (4) administrative and marketing expenses associated with issuing policies. If annual premiums exceed the sum of (1), (2) and (4), the difference is said to be the underwriting profit. An underwriting loss results otherwise.