1. What is a CD (Cash Deposit) account?

A CD (Cash Deposit) account is an account that your insurance company creates at their internal system level (not a bank account) for your policies. It is a non-interest-bearing account with all premium payments made by your company getting deposited in your account.

2. How does a CD account work?

When you make a payment to the insurance company, this amount gets credited to your CD. Now, when you add a new member (employee or their family member) to the policy, the (pro-rata) premium is debited from your CD account. Similarly, when the employee leaves and you remove them from Plum, the (pro-rata) premium is refunded to the CD account (subject to no claims made by that employee).

3. Why is it essential to maintain CD balance?

With a healthy CD balance, you don’t have to make the premium payment for every employee joining your team. An adequate CD balance also ensures that the cover for your new employees starts from their date of joining – even if you have missed adding the employee to the Plum Dashboard on the date of joining.

Moreover, if your CD balance isn’t enough to cover the new additions, the insurer will not accept claims arising from these new employees.

And claims rejection, as you might know, isn’t exactly a pleasant situation for your employees.

4. How much CD balance should you maintain?

We recommend that you maintain at least 10% (if not more) of your original premium amount in your CD account.

Also, please add the 10% additional premium every time your endorsement is processed, or feel free to seek our help in maintaining the CD amount.

5. How do you manage your CD balance with Plum?

You can check your CD balance by viewing your Plum dashboard.

To manage your CD balance, follow the five steps below:

Step 1: Navigate to ‘Settings’ by clicking on the dropdown on the top right corner of your Plum dashboard.

Step 2: On the Settings screen, navigate to the CD accounts tab.

Step 3: Click on the ‘add money’ tab.

Step 4: On the left half of the screen, you will see your account details. Make a NEFT transfer to this account, enter the details as required and hit the Submit button.

Step 5: We will review this transaction and update your CD balance on Plum within a couple of days.

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