Employee-Employer Employee-Employer InsuranceInsurance

Canvassing Canvassing

&&

Underwriting RequirementsUnderwriting Requirements

04/07/23 Copyright © 2013 iAdvice Consulting, All rights reserved. 1

Need for InsuranceNeed for Insurance

Economy Is Opened upEconomy Is Opened upCompetitionsCompetitionsOpportunitiesOpportunitiesBrain DrainBrain DrainHuge Cost on Recruitment,training Huge Cost on Recruitment,training

& Specialisation& Specialisation

04/07/23 2

Ways to Restrict Brain DrainWays to Restrict Brain Drain

More wagesMore wagesmore incentivesmore incentivesmore perksmore perksmore facilitiesmore facilitiesmore promotionsmore promotions

04/07/23 3

RestrictionsRestrictions

Increase in wages- for all increase in perks- for allincrease in promotions- for allGroup Insurance- for all

04/07/23 4

Then what is the solutionThen what is the solution

Always very fewAlways very few are excellent workersare excellent workers

so honour themso honour them by giving promotionby giving promotion

but againbut again it is one time affairit is one time affair

the only way rather continuos way isthe only way rather continuos way is

give themgive them Insurance PolicyInsurance Policy as a giftas a gift

04/07/23 5

Why Insurance PolicyWhy Insurance Policy

Can be given to Can be given to Selective EmployeesSelective EmployeesIt can be given to those employees to It can be given to those employees to

whom Management feels to rewardwhom Management feels to rewardcontinuous rewardcontinuous rewardtax benefit to companytax benefit to company tax benefit to employeestax benefit to employeeseffective caring natureeffective caring nature

04/07/23 6

Benefit to employeeBenefit to employee

The death benefit will be given to The death benefit will be given to employee’s familyemployee’s family

feeling more secured, honouredfeeling more secured, honoured..Increase in belongingness Increase in belongingness

towards companytowards companyincrease in statusincrease in status

04/07/23 7

Benefit to companyBenefit to company

Tax BenefitTax Benefit Employee’s Increasing LoyaltyEmployee’s Increasing Loyalty Increase in Efficiency of EmployeeIncrease in Efficiency of Employee Retention of Good EmployeesRetention of Good Employees Image Building in the Minds of Image Building in the Minds of

EmployeesEmployeesCustomersCustomersshareholdershareholder

04/07/23 8

Tax ImplicationTax Implication

For companyFor company - -Will be treated as business ExpensesWill be treated as business Expenses

For Employee -For Employee -will be treated as perquisites will be treated as perquisites

and can claim premium amount u/s and can claim premium amount u/s Sec 80CSec 80C

04/07/23 9

Other conditionsOther conditions

Generally amount of Premium Generally amount of Premium should not exceeds 20 % of total should not exceeds 20 % of total wageswages

or minimum Rs.1000/-or minimum Rs.1000/-tax is to calculated on total perkstax is to calculated on total perksthis provision is u/s Sec 40 a(v) a this provision is u/s Sec 40 a(v) a

(ii)(ii)

04/07/23 10

RequirementsRequirements

Form No 300 or 340Form No 300 or 340Letter From Employer to Letter From Employer to

Employee Stating the Reasons for Employee Stating the Reasons for InsuranceInsurance

Assignment Is Possible at the Assignment Is Possible at the Time of Proposal ItselfTime of Proposal Itself

04/07/23 11

Who can take InsuranceWho can take Insurance

Any Company, Partnership Firm or Any Company, Partnership Firm or Even Proprietary Concern Is Even Proprietary Concern Is Eligible for Taking Insurance for Eligible for Taking Insurance for Their Employees Under Employer-Their Employees Under Employer-employee Relationship employee Relationship

All Plans of Insurance Is AllowedAll Plans of Insurance Is AllowedAll Modes Are Also AllowedAll Modes Are Also Allowed

04/07/23 12

Thank Thank You…You…

04/07/2313

Copyright © 2013 iAdvice Consulting, All rights reserved.