Employer-Employee Insurance in Ahmedabad
Skilled staff are hard to find and expensive to replace. Employer-employee insurance lets a business give chosen employees real life cover, with the premium paid by the business, as a benefit that keeps people and protects their families.
It suits small and mid-sized businesses as much as large companies. A unit can cover a handful of key staff, not necessarily everyone.
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How the scheme works
- ·The employer pays the premium on a policy on the employee’s life.
- ·The employer can be the proposer and later assign the policy to the employee, as set out in a letter given with the proposal.
- ·The employee’s family receives the claim if the employee dies; savings plans can also pay a maturity amount to the employee.
- ·The employer chooses which employees to cover and can set the cover by grade or role.
- ·LIC sets eligibility rules, for example limits on the employee’s and the family’s shareholding in the employer company.
How it is taxed
The treatment depends on how the scheme is structured, so it is set up together with your chartered accountant.
- ·For the employer, the premium is generally a business expense.
- ·For the employee, an employer-paid premium on a policy for a specific employee may be taxed as a perquisite (part of salary). It is generally not, where cover is provided to all employees.
- ·Maturity amounts paid to the employee follow the usual payout rules, depending on how and when the policy is assigned.
What the branch usually asks for
- ·The proposal, with the employer’s letter on the object of the insurance and its assignment
- ·The employer’s books of accounts or income-tax orders for recent years
- ·The employee’s income proof, since cover is sized to their eligibility
- ·A board resolution or authority letter
Employer-Employee Insurance in Ahmedabad — common questions
What is employer-employee insurance?
Life insurance on an employee’s life with the premium paid by the employer. The employee’s family is protected, and the business gets a benefit that helps it keep skilled staff. The employer chooses which employees to cover.
Is employer-employee insurance premium a business expense?
Generally yes, for the employer. For the employee, the premium may be a taxable perquisite where the cover is for specific employees rather than all staff. The exact treatment depends on the structure, so set it up with your CA.
Can a small business offer employer-employee insurance?
Yes. It is not limited to large companies; a unit can cover a few key employees, with cover set per grade or role, subject to LIC’s eligibility rules.
What is the difference between keyman and employer-employee insurance?
Keyman cover protects the business: it pays the premium and receives the claim. Employer-employee cover protects the employee’s family: the business pays the premium, but the benefit goes to the employee or their nominee.
What happens next
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- You get a reply on WhatsApp or a call back, Mon–Sat, 9 AM–6 PM.
- First consultation is free — by phone, on WhatsApp, or in person at the Shela office.
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Check the official terms
Plan features on this page are simplified summaries. Benefits, bonus rates, eligibility and exclusions are set by LIC and can change — always read the current sales brochure and policy document before you buy.