FAQS ON EMPLOYER EMPLOYEE INSURANCE 
             1. What is Employer-Employee Insurance?
                Life Insurance policy taken by an employer on the life of his employees for
                the benefit of employees is called an Employer-Employee Insurance
                (EMPLOYER-EMPLOYEE INSURANCE). An employer can choose to take
                multiple policies for more than one employee.
                There are two (2) options available under Employer-Employee Insurance 
                Option-1 
                •  Employee is the proposer himself and retains control over the policy as
                   the owner of the policy.
                •  Employer is the premium aggregator.
                •  The standard application form is completed by the employees.
                •  This application form must be accompanied by a letter from the
                   employer committing to pay the premium.
                Option-2 
                •  Employer is the proposer and retains the right to assign the benefits of
                   the policy to the employee. The time and manner of assignment is
                   defined in the scheme.
                •  The employer proposes the policy for the employee and pays the
                   premium.
                •  The standard application form is signed by the Authorized signatory on
                   behalf of the employer as a part of terms and conditions of his
                   employment. Later the Authorized Signatory could assign the policy in
                   favor of the employee (on behalf of the employer).
                •  The application form must be accompanied by a letter from the
                   employer stating the object of insurance restrictions imposed regarding
                   loans, surrender etc. and that the policy would be assigned in favor of
                   the employee.
                 2.  What is the minimum number of employees for an organization to opt 
                     for an Employer—Employee Insurance? (E.g. can an organization with 
                     just three employees take an Employer— Employee Insurance?)  
                     There is no restriction as to the minimum numbers of employees for an 
                     organization to opt for an Employer—Employee Insurance. An organization 
                     with any number of employees can opt for Employer—  Employee 
                     Insurance.  
                  
                 3.  What are the products that can be offered when the employer is the 
                     proposer?  
                     In a case where the employer is the proposer all individual products can 
                     be offered under an Employer — Employee Insurance, subject to internal 
                     guidelines of Aviva.  
                  
                 4.  Are there any restrictions on percentage holding in the business to 
                     qualify as employee for Employer — Employee Insurance?  
                     Yes. There are restrictions on percentage share holding in the business by 
                     the employee. Threshold limit of shareholding (beyond which the life 
                     insurance will not be considered under Employer -Employee cover) is:  
                     •   Individual holding < 50% and  
                     •   Employee + Family holding put together <=70%  
                          
                 5.  What proof of insurance is given to the employee/his family under 
                     Option2? (i.e. do they get a copy of the policy docket?)  
                     No proof is given to the employee under Option 2. Under this option, the 
                     employer is the owner of the policy and all the correspondence would be 
                     with the employer.  
                  
                 6.  Under Option 1, are the premium notices and receipts sent both to 
                     the employer and employee?  
                     The premium receipt is sent only to the employee in Option 1.  
                                                   
       7. Who will pay the premium in case of conditional assignment of such
        policies under option 2?
        In case of conditional assignment of such policies the employer continues
        to pay the premium.
       8. Can a Partnership firm take an insurance policy for its partners under
        an Employer - Employee Insurance?
        Partnership firm cannot take an insurance policy for its partners under an
        Employer-Employee Insurance. The reason for the same is that the
        partners are not regarded as employees of a partnership firm.
        For any policy to be bought under employer employee proof of 
        employability is mandatory requirement.