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Employee Insurance Scheme
The employee-employer insurance is where the company buys an insurance policy for the benefit of their employees. Its a benefit that may be given to select employees or all. In today's competitive times, employee insurance schemes play a very relevant part of attracting & retaining employees. This type of insurance policy also works as a perk or rewards for the employees of the organization. Employees consistently rate benefits as one of the key factors that decide the job satisfaction. Hence it becomes imperative for an organization to offer package that is attractive to current & new employees.
Employee benefits insurance can be classified as:
Life Insurance
Retirement Benefits
Group Health Insurance
Group Accidental Benefits
Partnership Insurance
An insurance policy which is sold to the partnership in a business is known as partnership insurance. This type of insurance is given to all insurable partners of an organization. Its an agreement that states that, in-case of death of a partner or dismemberment, the other existing / living partner (s) have the right to purchase the out-going members share in the firm.
A partnership insurance is important as death of a partner in the business may bring on financial or legal troubles for the firm. The business will also have to provide the deceased partner's family members what is owed to them. It may also be legally binding on the existing partners to pay a certain amount of capital sum to the deceased's estate. In such scenario, an insurance will provide funds required to pay for such expenses.
Married Women's Property Act (MWP)-Life Insurance Plan
MWP Act (Married Women's Property Act) was bought into effect with a view to protect properties of married women from creditors.
Section 6 of MWP Act covers life insurance policies (assigned under this Act) by the married man for the benefit of his wife and children. In this, the proceeds or claim of the policies will only be given to the nominee (s) mentioned by the policy holder. The creditors, husband's family or even the husband himself will not have any survival benefits of the policy, if any.
This act provides a simple means by which a married man can protect and ensure that benefits of his dependents or nominees are protected without having to create a settlement deed or trust. Even married women can buy a policy on her name under this act and add her children as the nominees but her husband will not get any benefit from this policy.
Group Insurance
Group insurance related to an insurance cover offered for a certain set of people. They can be from a particular organization, members of a society, associations etc. This type of insurance can cover life, health and/or some types of personal loans.
A quick glance at some of the characteristics of group insurance policies:
The group of people to be insured must have a common objective other than the purpose of only obtaining insurance
Group insurance is available at discounted rates
Coverage is under a "master policy" which is issued to the employer, association or group
