What is employer-employee insurance?

What is Employer-Employee insurance?

Often there is a mismatch between employee expectations and the benefits being offered by employers, thus resulting in great employee dissatisfaction. Offering insurance to employees can be a great retention tool and help companies attract top talent. Employees are integral to the success of a company and as an employer, you can help employees get financial coverage against unforeseen events. Read on to know everything about the employer-employee insurance scheme and its benefits.

Employer-employee insurance explained

Employer-employee insurance is a type of insurance that an employer purchases for his employees. Employees being the beneficiary are eligible to receive the coverage, while the expenses for the policy purchase are borne by the company. It may or may not be provided to all the employees employed in the company and would be limited to specific employees only. This type of insurance is provided to the employees as a part of the company benefits at no cost or a low cost.

It is quite common for employers to get confused between keyman insurance and employer-employee insurance. While keyman insurance only offers term life cover and can be opted for employees employed at a key position in the company, employer-employee insurance can be taken for employees of all designations and includes coverage for all kinds of insurance.

Under keyman insurance, insurance benefit subject to the applicable taxes is paid to the employers, whereas, under employer-employee insurance, benefits are tax-free and are provided to the employees and their families.

Eligibility of Employer-Employee Insurance

The eligibility of employer-employee insurance is as follows:

  • Any company, proprietary, or partnership firm with employees as low as 7
  • Employees employed in the company and are a part of the company’s payroll
  • NRI employees working for a company having a registered office in India
  • There are health membership plans that now cover companies with a team size of as low as 3

Employer-Employee Insurance Benefits

Providing insurance cover to employees offers you the below benefits

  • Increased employee satisfaction and loyalty
  • Boost employee productivity and morale
  • Helps in securing employees’ and their family’s financial future
  • Maturity proceeds are given to employees and their families
  • Coverage offered to the employee is wider than individual insurance plans

Different types of arrangements under which employer-employee insurance scheme can be purchased

E-E insurance scheme can be purchased under the below types of arrangements

Type A: Under this arrangement, the proposer is the employer, and the employee are the life assured

Type B: Under this arrangement, the employee is the proposer, and life assured is the life assured

How to buy employer employee insurance scheme?

  • To start with, the employer must first decide on the coverage amount that he would like to offer to the employees based on the CTC, experience and qualification, and designation.
  • The proposal form must be filled out and signed by the employer stating that the due premiums would be paid by the employer on the behalf of the employee
  • The form should be signed and sealed with the company’s stamp by the authorized signatory
  • The form should mention the type of insurance that the employer would like to purchase along with the riders if any
  • The employer should get an assignment form in the name of the employees to get coverage for them
  • Employees can then nominate the beneficiary who would be eligible to receive the coverage in case of an unfortunate event

Conclusion

Employer-employee insurance scheme offers you the above range of benefits and coverage. With Onsurity, you can health membership for your team of as low as 3.