Employer Employee

Problems faced by the businessman

1. Compensation for the death of an employee
2. Managing new recruitment and training cost
3. Retention of the Employee for a long period of time

Solutions used by the businessman

1. Mediclaim
2. Promotion
3. Vehicle loan
4. Housing loan
5. Increase salary
6. Group insurance
7. Medical facilities
8. Employer Employee Insurance Scheme will be beneficial for Employee retention

Employer Employee Insurance Scheme

1. Can be given to one or more than one employee
2. Insurance value depends on Age and Salary of the employee
3. Employer pays premium and benefits of the policy is given to the employee

Benefits to the Employer

1. Employee welfare
2. Taxable income reduces 
3. Employee stays loyal to the employer
4. The premium paid can be claimed as the business expenses

Benefits to the Employee

1. Disability cover
2. Natural death cover
3. Accidental death cover
4. Helps the employee to secure his/her future and family

Tax benefit for the company

1. Premium paid can be claimed as Expense under section 37(1)
2. All benefits and maturity proceeds are Tax Free under 10(10D) in the hands of the employee
3. Premium paid by the company is added as Perquisite in the income of the Employee under 17(2)V and because of this, employee can take tax benefit of this premium under 80C