Employee employer insurance scheme


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Employee employer insurance scheme

  1. 1. Employee-EmployerEmployee-Employer InsuranceInsurance CanvassingCanvassing && Underwriting RequirementsUnderwriting Requirements 07/01/13 Copyright © 2013 iAdvice Consulting, All rights reserved. 1
  2. 2. Need for InsuranceNeed for Insurance Economy Is Opened upEconomy Is Opened up CompetitionsCompetitions OpportunitiesOpportunities Brain DrainBrain Drain Huge Cost on Recruitment,training &Huge Cost on Recruitment,training & SpecialisationSpecialisation 07/01/13 2
  3. 3. Ways to Restrict Brain DrainWays to Restrict Brain Drain More wagesMore wages more incentivesmore incentives more perksmore perks more facilitiesmore facilities more promotionsmore promotions 07/01/13 3
  4. 4. RestrictionsRestrictions Increase in wages- for all increase in perks- for all increase in promotions- for all Group Insurance- for all 07/01/13 4
  5. 5. 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 07/01/13 5
  6. 6. Why Insurance PolicyWhy Insurance Policy Can be given toCan be given to Selective EmployeesSelective Employees It can be given to those employees toIt can be given to those employees to whom Management feels to rewardwhom Management feels to reward continuous rewardcontinuous reward tax benefit to companytax benefit to company tax benefit to employeestax benefit to employees effective caring natureeffective caring nature 07/01/13 6
  7. 7. Benefit to employeeBenefit to employee The death benefit will be given toThe death benefit will be given to employee’s familyemployee’s family feeling more secured, honouredfeeling more secured, honoured.. Increase in belongingness towardsIncrease in belongingness towards companycompany increase in statusincrease in status 07/01/13 7
  8. 8. 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 ofImage Building in the Minds of EmployeesEmployees CustomersCustomers shareholdershareholder 07/01/13 8
  9. 9. 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 perquisiteswill be treated as perquisites and can claim premium amount u/s Secand can claim premium amount u/s Sec 80C80C 07/01/13 9
  10. 10. Other conditionsOther conditions Generally amount of Premium shouldGenerally amount of Premium should not exceeds 20 % of total wagesnot exceeds 20 % of total wages or minimum Rs.1000/-or minimum Rs.1000/- tax is to calculated on total perkstax is to calculated on total perks this provision is u/s Sec 40 a(v) a (ii)this provision is u/s Sec 40 a(v) a (ii) 07/01/13 10
  11. 11. RequirementsRequirements Form No 300 or 340Form No 300 or 340 Letter From Employer to EmployeeLetter From Employer to Employee Stating the Reasons for InsuranceStating the Reasons for Insurance Assignment Is Possible at the Time ofAssignment Is Possible at the Time of Proposal ItselfProposal Itself 07/01/13 11
  12. 12. Who can take InsuranceWho can take Insurance Any Company, Partnership Firm orAny Company, Partnership Firm or Even Proprietary Concern Is EligibleEven Proprietary Concern Is Eligible for Taking Insurance for Theirfor Taking Insurance for Their Employees Under Employer-employeeEmployees Under Employer-employee RelationshipRelationship All Plans of Insurance Is AllowedAll Plans of Insurance Is Allowed All Modes Are Also AllowedAll Modes Are Also Allowed 07/01/13 12
  13. 13. Thank You…Thank You… 07/01/13 13 Copyright © 2013 iAdvice Consulting, All rights reserved.