Keyman Insurance Scheme


Keyman Insurance Scheme – Best Insurance for the best journey
Keyman Insurance Scheme

Help your clients secure their most valued assets.

The purpose of the Keyman Insurance scheme is to protect a business firm against the reduction in profits resulting from the death of a valuable and important person to the business entity. Loss may be grouped into two broad categories - reduction in profits and cost of replacement.

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  • The entity is the Proposer
  • The employee/director would be the 'life to be insured' in the policy
  • Premiums will be paid by entity
  • The intention of this policy is for the entity to compensate losses in the event of a claim
  • The entity is the Proposer.
  • The employee/director would be the 'life to be insured' in the policy.
  • The entity will pay the insurance premiums.
  • The intention of this policy is for the entity to compensate for losses in the event of a claim
  • The premium paid is allowable business expense under section 37 (1) of the Income Tax Act 1961.
  • Claim received will be treated as business income under section 28 (VI) of the Income Tax Act 1961.
  • A corporate as the entity where the 'life to be insured' is a key employee/director of the corporate
  • A sole proprietorship as the entity where the 'life to be insured' (other than the sole proprietor) is any employee of the sole proprietorship
  • Any other legal entity as the employer and its employees
  • A valid certified copy of the board resolution (the Insurance company shall provide format)
  • A letter signed by the authorised signatory
  • A Keyman questionnaire has to be signed in and filled in by the authorized signatory along with the seal or stamp of the company.
  • A Normal Proposal Form which is to be signed by an authorized signatory with the stamp or seal of the company, is to be used. The proposal form has to be signed by an authorized signatory along with the seal or stamp of the company.

Financial documents required

  • The entity will have to submit a copy of the Articles of Association/ Partnership deed as the case may be and its Memorandum.
  • The entity will have to submit the audited balance sheet and profit & loss account for the last three financial years.
  • The entity must submit income tax returns for the previous three financial years.

PRODUCT OFFERED

  • Only term plan without any riders

MOST APPROPRIATE SEGMENT

  • SME with a turnover between 1-500 crore