An Employer-Employee Insurance scheme is an arrangement in which an employer purchases a life insurance scheme for its employees. It means that the ownership of the policy is with the employer and the premiums are paid by the employer, employee is the beneficiary of the policy.
This kind of arrangement helps an employer ensure the social security of their employees and also reduces the employee attrition rate. Besides, the premiums paid towards an Employee Insurance scheme can be claimed as business expenses, and hence, the employer can use them to reduce their income tax* outgo.
What are the Eligibility Criteria For Buying Employer Employee Insurance?
Any business entity with any number of employees can buy Employer-Employee Insurance in India. It can be a sole proprietorship business or a large corporate house, or any other legal firm. Below are the key parameters that define the eligibility criteria for procuring Employee Insurance in India: