"The Employer-employee Scheme Gives Boost To The Insurable Interest Between Employer-employee By Providing Insurance On The Lives Of Executives/Employees Of The Company To Offer Them Very Handsome Perks And Security.

Employer-Employee Insurance Scheme Is An Insurance Arrangement Between The Two, Where, The Employer Purchases An Insurance Policy For The Employee.

This Arrangement Is Based On The Principle That The Employer Has An Insurable Interest In His/her Employees.

The Interesting Fact Is That Both The Employee And The Employer Is Benefited Through This Arrangement.

Objectives Of Employer Employee Insurance ?

• Provide This As An Additional Benefit To The Employee In Order To Retain The Services Of The Employee.   
• Make Provision Provision As A Welfare Welfare Measure Measure For The Dependents Of The Employee, In Case Of Premature Death Or Old Age Provision For Employee Himself.
• Provide This As An Employer Sponsored Fringe Benefit Which Is A Valuable Part Of The Compensation.

Benefits To Employer

• Increase In Loyalty Of The Employee  
• To Minimize Minimize Employee Employee Attrition Attrition Rates Which Hurt Business (The Expense Of Recruiting And Training New Employees Is High).
• Enjoy Tax Rebates On The Premium Paid
• An Attractive Incentive To Retain TALENT.

Benefits To Employee

• Provides Employee With Long Term And Short Term Security Against Premature Death, Illness, Accident/disablement.  
• In Addition To Benefits From Company On Retirement, Employee Gets Maturity Claim From Employer.  
• Employee Need Not Bother About Buying And Administering The Policy.  
• Tax-free Income As Claim.

Employer Employee Insurance Interpretation Of Tax Implications?

• Premium Paid By Employer Is Taken As Business Expense And Is A Deductable Expense U/s 37(1) Of IT Act.  
• Premium Paid By Employer Is Considered As ‘perquisite’ ‘perquisite’ In The Hands Of The Employee And Hence Will Become A Part Of ‘income Chargeable To Income-tax For The Employee, U/s 17(2)(V) Of IT Act.
• Premium Paid By Employer Can Be Claimed For IT Rebate U/s 80C By Employee.

Employer Employee Insurance -Eligibility

• The Proposal Will Be Treated As Individual Proposal From The Employee Concerned.
• The Medical Examination/special Reports Will Be Decided Decided On The Basis Of SUC For The Individual Life Proposed (employee).
• The Maximum Eligible Insurance For The Employee Will Be Based On His/her Individual Income.