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
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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
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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
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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
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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
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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
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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)
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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
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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
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