Employer Employee Guidelines

• Employer employee insurance policies assist the employer in providing additional benefits as
well as protecting the firm's employees.
• The company purchases life insurance on the lives of its Employees, which will provide money
to their family members in event of their premature death and also makes provision for their
old age.
• These Additional benefits will act as sufficient inducement to continue with the present
Employer.

2 types of Employer Employee schemes are available as follows:

Employer-Employee Scheme A Employer-Employee Scheme B

Employer buys insurance for one or more employees Formatted: Centered, Space Before: 0 pt,
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Employer pays the premium Formatted: Centered, Space Before: 0 pt,

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Employee will get the maturity benefit or his nominee will get the death benefit Formatted: Centered

Employer undertakes to assign the policy to the
employee absolutely upon the employee
continuation in service for a period specified by
the employer (lock-in period)
After assignment, employee needs to continue
paying the premiums to keep the policy in force
Employee signs as Insured & Employer signs as
Proposer
AML and KYC required for both Employee and Employer
Employee himself is the policy holder,
Employer is only paying premiums. Employee
can continue to pay premiums on quitting the
company
Employee can continue to pay premiums on
quitting the company
Application signed by employee as the
proposed insured and policy holder
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Current address on the application form should be the Employers address. Formatted: Centered, Space Before: 0 pt,
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No restriction on type or number of employees who can avail of this scheme Formatted: Centered

All plans are allowed in Employer Employee policies (Not applicable for Keyman insurance Formatted: Centered, Space Before: 0 pt,
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(For Key person insurance & Partnership Insurance- Only Pure TERM plans are allowed)
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 Underwriting requirements for Employer Employee policy

Employer-Employee Scheme A Employer-Employee Scheme B

Covering Letter from Employer

Employer-Employee Scheme B addendum
Undertaking to be taken on the Letter-head of the
Company signed by the person signing the proposal form
as the authorized signatory
Board Resolution granting the permission to apply for an
insurance policy under the Employer-Employee scheme Letter from employer on company letterhead confirming
the below mentioned details
Format of details of Employees covered
o Individual stake of the Employee in the Employer can
be upto 50%
Beneficiary appointment Form o Family** stake of the Employee can be upto 71%
**Family to be defined as Employee (Self), Spouse and
Minor Children
The declaration of the employee
The same is included in the employer employee scheme
Format of Absolute Assignment to be executed by the B addendum
Employer upon the employee continuing beyond the
stipulated working period
Special conditions endorsed on the Policy Document

Employer Employee
memo.pdf