Employer–Employee Insurance Scheme Explained | Tax, Retention, Business Risk Strategy & compliance

Описание: Employer–Employee Insurance Scheme is often misunderstood as a tax-saving tool. In reality, when structured correctly, it is a powerful business insurance strategy for employee retention, risk transfer and long-term compliance.

In this video, I explain Employer–Employee Insurance Scheme in India from a practical, real-world perspective based on underwriting experience, business insurance structuring and Keyman Insurance planning for SMEs and professional firms.

This video will help you clearly understand:
• What Employer–Employee Insurance Scheme actually is
• Why insurance should never be treated like salary or bonus
• Difference between Group Insurance vs Individual Insurance
• How Scheme A (Company Owned) works in practice
• Role of Group Term Insurance, Group Health Insurance and Accident Cover
• Why this scheme is about staff welfare, employee retention and brand value, not just tax saving
• Income Tax Section 37(1) explained in simple business language
• Why insurance premium qualifies as a valid business expense
• Salary / Bonus vs Scheme A – real tax impact comparison
• Death case claim settlement flow and company control logic
• Ex-gratia payment mechanism and compliance treatment
• Practical Employer–Employee Insurance use cases for SMEs and growing businesses
• Common structuring mistakes that lead to tax, audit or claim issues
• Which businesses should avoid Employer–Employee Insurance Schemes
• Why correct design is advisor-dependent and not a DIY decision

This video is specially created for:
Business Owners, SMEs, Professionals, CAs, Directors and Partners
who want clarity on business insurance, employee benefit structuring and tax-compliant planning.

⚠️ Important Disclaimer:
Employer–Employee Insurance Schemes work only when ownership, control, tax treatment and documentation are properly structured. Incorrect design can create serious compliance, tax and claim-settlement risks.

This video focuses on concept clarity and correct structure, not product pushing or shortcuts.

🔍 Related Topics Covered

Employer Employee Insurance Scheme
Scheme A Insurance
Business Insurance for Companies
Keyman Insurance Explained
Group Term Insurance India
Tax Planning for Companies (Section 37(1))
Employee Retention through Insurance

If you are a business owner, professional or CA evaluating an Employer–Employee Insurance Scheme, do not rely on assumptions or generic advice.

Every business needs a custom structure based on:
• Employee profile
• Business objective
• Tax & compliance impact
• Claim control mechanism

📌 For serious evaluation, a structured consultation helps avoid costly mistakes.

👉 Details are available in the description / pinned comment.

SEO Keywords

Employer Employee Insurance Scheme
Scheme A Insurance
Business Insurance India
Keyman Insurance
Group Term Insurance
Tax Saving for Companies
Section 37(1) Insurance
Employee Retention Strategy

Time Stamp

00:00 – Introduction
Why Modern Companies Go Beyond Salary

01:08– Employer–Employee Insurance Scheme Explained
Concept, Purpose and Business Use

02:13 – Why Insurance Structure Is Different From Salary
Insurance ≠ Salary or Bonus

02:37 – Group Insurance vs Individual Insurance
Structural and Risk Differences

03:12 – Scheme A (Company Owned) Insurance Explained
Ownership, Control and Eligibility

8:42 – Scheme A Insurance – Practical Working Model
Company, Insurer and Employee Interaction

11:02 - Income Tax Section 37(1) Explained
Why Insurance Premium Is a Valid Business Expense

14:07 – Death Case Claim Settlement Process
Company Control vs Employee Nominee

20:12 – Scheme B Insurance Explained
Ownership, Control and Eligibility

21:42 – Scheme B and tax rule with example explain
death benefit in group term

26:23 – Scheme B and tax rule with example explain
death benefit in traditional saving plan

31:07 – If employee leave job and new employee join
35:22 Myths
37:30 Assignment in Employer–Employee Insurance Scheme A
45:01 Corporate tax and tax rate and individual tax and tax rate
47:12 Tax Calculation in Employer–Employee Insurance Scheme

48:01 – Common Structuring Mistakes in Employer–Employee Insurance
Tax, Audit and Claim Risks, loan and tax in Employer–Employee Insurance

50:19 – Ex - Gratia in Employer–Employee Insurance

51:05 – Who Should Avoid Employer–Employee Insurance Schemes
Wrong-Fit Business Scenarios

52:21 Documents requirement to buy Insurance in Employer–Employee Insurance Schemes
52:50 - Conclusion