Employer Employee Insurance

This query is : Resolved

Yash Arya (Querist)
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29 March 2009 A limited company has taken employer-employee insurance policy, they have not appointed any nominee for the policy, hence on maturity company will receive the maturity amount. what is the implication for the same in Income Tax and also for FBT?

If in the following years employer assign the policy to the employee than what will be the effect for the same in IT?

Thanks

Dsouza

Dsouza (Expert)
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27 February 2012 It is an error by both the ltd company and the insurance company if a nominee has not been placed on the policy. However this has only to do with death as nominee receives this at any time even before assignment, under this scheme.
it seems to be a conditional policy hence company will receive if not assigned, once done the employee becomes the owner of the policy and has to pay Perk tax under section 17 on surrender value.