Reducing Business Risk

Employer-Employee Insurance

Employer Employee Insurance is a unique opportunity for the employer to reward his employee and get benefited at the same time. Employer Can be a Private Limited Company, Public Limited Company, A Proprietor Firm, A partnership firm or A society, Trust or NGO. In the Employer-Employee insurance arrangement, both the employer, as well as the employee, are benefited at the same time.

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What Is Employer Employee Insurance?

When An employer buys an insurance policy for his employee, it is called Employer Employee Insurance Policy.

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Why an employer buys an insurance policy for his employee?

1. Loyalty to the Employer: The employee will feel to be more secured and honored. That’s why, the loyalty to the employer is enhanced.

2. Losing Secrets of Organisation: When a high-level employee leaves an organisation, he takes secrets of that organisation with him. Sometime the team he was handling was so closely associated with him; his team also start leaving the organisation. It helps to minimize employee attrition rate.

3. Tax Benefits to the Employer: The employer is entitled to get exemptions for the premium amount (whether it is under single or non-single mode) u/s 37(1) of Income Tax act as business expenses of the firm.

4. Tax deferment strategy of the organisation:Tax planning can be done with the help of Employer Employee insurance. Along with it Tax deferment is also an important point to be considered.

 

 

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It has seen time to time that after getting bonus an employee leaves an organisation. Higher salaries do not mean that the employee will stay in that organisation. But provisions like employer employee insurance can help them to stay longer. That’s why every employee must consider employer employee insurance for his employees.

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 Benefits to Directors Cum Promoters, Partners drawing Salary in Partnership firms, Family members drawing Salary in Propriety Firms.

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All dignitaries of firms and NGOs can get benefits of Employer Employee Insurance. There is only one condition lies, They must getting salary from that firm u/s 192 of income tax act 1961.

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How it can be beneficial to you and your organisation, please  call me.

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