Hello. Please tell me about KEY MAN INSURANCE. does it taken on proprietor's life? can LIC do this?please reply
sachin patil (Accountant) (102 Points)
19 March 2009Hello. Please tell me about KEY MAN INSURANCE. does it taken on proprietor's life? can LIC do this?please reply
SATYENDRA KR. GUPTA
(C.A.FINAL)
(242 Points)
Replied 26 March 2009
Key man insurance is not available for proprietor.
Thanks
S.K.GUPTA
BHAVIN SHAH
(FINANCE MANAGER)
(38 Points)
Replied 26 March 2009
Hi,
Keyman insurance moto is to secure the life of the key employee of the business, if the key employee of the firm/company is expired, at that time the insurance company will pay the amount to the proposer (i.e. firm/company) to compensate the loss arise by lefting the key employee.
In case of the properitor firm, properitor of the firm is not a person employee, in defination of the key employee person, in my view the key man insurance is not possible
CAclubindia
