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In today’s world of professional management success of a company solely depends on the Individual
Talents of certain Managers, whose Vision, Skill, Integrity and Managerial capability is essential for
the future progress and prosperity of the company.
Exit of these key persons due to premature death would in most cases result in immediate financial
loss to the company and question arises, how does a company replace talent like that?
The company on the lives of such Key Persons purchases Keyman Insurance and in event of
premature death of Key Person Company gets the insurance proceeds.
Managing Director/CEO
Financial Director
Sales Director
Project Manager
Inventor
E-commerce manager etc.
Eligibility of companies:
Keyman insurance is open to all categories of business firms except:
1. Proprietorship firms owners.
2. Firms where shareholding of Key person is over 75% and Family shareholding of Key person is
over 90%. (Family will include spouse and minor children only). Proposals beyond these limits but
less than 100% holding by Keyman/Family can be considered at CUS on case to case basis.
3. Company not making profits for the last three consecutive years.
4. When the profit and turnover of the company are on the decline.
How the amount of Insurance is arrived at?
A. Directors of Public limited company, Private limited Company with at least 10 employees and
Partners of Partnership firm
The Maximum insurance allowed will be restricted to least of the amounts arrived at by above
three methods and distributed among all the key persons proposed for. There is no restriction on
turnover of partnership firm.
Proposal Form in F.No. 340 and usual medical requirements on the life of the Key – man
Partner.
Copy of Deed of Partnership duly attested by the partner authorized to sign insurance proposal
along with copy of supplementary Partnership Deed.
Copies of Audited Balance Sheet and Profit & Loss A/Cs for the last three years containing
schedule of partner’s capital A/cs.
Copies of Income Tax Returns of the firm for preceding three years duly attested by the
authorized partner.
Letter of Authority in favour of partner signing the proposal.
Plans Allowed:
Plan 822- Anmol Jeevan II, and Plan 823- Amulya Jeevan-II.
The company is protected against the financial loss in the event of Keyman’s death.
The company is able to create an asset for itself in the form of Sum assured and
guaranteed/loyalty additions.
It gives a substantial relief to the company in Income Tax.
It protects the interest of other employees, shareholders and customers.
It keeps the company’s position stabilized in the market.
It generates confidence, sense of security and loyalty in the minds of Keyman.
It can be given as security to Bankers even though policy is not allowed to be assigned.
It is a guarantee to the creditors.