Employee employer insurance scheme

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Text of Employee employer insurance scheme

Employee-Employer Insurance

Employee-Employer InsuranceCanvassing &Underwriting Requirements*Copyright 2013 iAdvice Consulting, All rights reserved.*

Need for Insurance Economy Is Opened upCompetitionsOpportunitiesBrain DrainHuge Cost on Recruitment,training & Specialisation

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Ways to Restrict Brain Drain More wagesmore incentivesmore perksmore facilitiesmore promotions**

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

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Then what is the solutionAlways very few are excellent workersso honour them by giving promotionbut again it is one time affair

the only way rather continuos way isgive them Insurance Policy as a gift**

Why Insurance PolicyCan be given to Selective EmployeesIt can be given to those employees to whom Management feels to rewardcontinuous rewardtax benefit to company tax benefit to employeeseffective caring nature**

Benefit to employeeThe death benefit will be given to employees familyfeeling more secured, honoured.Increase in belongingness towards companyincrease in status

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Benefit to companyTax BenefitEmployees Increasing LoyaltyIncrease in Efficiency of EmployeeRetention of Good EmployeesImage Building in the Minds of EmployeesCustomersshareholder**

Tax Implication For company -Will be treated as business Expenses For Employee -will be treated as perquisites and can claim premium amount u/s Sec 80C

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Other conditions Generally amount of Premium should not exceeds 20 % of total wagesor minimum Rs.1000/-tax is to calculated on total perksthis provision is u/s Sec 40 a(v) a (ii)

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RequirementsForm No 300 or 340Letter From Employer to Employee Stating the Reasons for InsuranceAssignment Is Possible at the Time of Proposal Itself

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Who can take InsuranceAny Company, Partnership Firm or Even Proprietary Concern Is Eligible for Taking Insurance for Their Employees Under Employer-employee Relationship All Plans of Insurance Is AllowedAll Modes Are Also Allowed

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Thank You**Copyright 2013 iAdvice Consulting, All rights reserved.

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