Insurance for the Company or Assurance for the keyman?

Sreenath, Lalitha and Sreenath, MR (2005) Insurance for the Company or Assurance for the keyman? TAPMI, Manipal.

TWP55_05_Insurance for keyman.pdf

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In knowledge-driven industries, the need to indemnify the monetary losses that may accrue on the sudden death or exit of key person in the organization has led to the emergence of new life insurance product – keyman insurance policy. However, with the reduction of the corporate tax liability from 35 to 30% by the Indian Government for the fiscal year 2005 -06, this legitimate risk management tool has been grossly abused in Mar. 2005 for avoidance of tax. Hence this paper attempts to trace the development of this cover and the concepts used in the valuation of this product, the gross abuse of the tax laws by the corporates and the steps needed to rectify the situation.

Item Type: TAPMI Working Papers
Uncontrolled Keywords: Insurance: Finance
Subjects: General Management
General Management > Business Law
Divisions: General Management and Enterpreneurship
Depositing User: Ms. Vanitha K
Date Deposited: 16 Nov 2018 09:48
Last Modified: 20 Nov 2018 09:07

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