Page 27 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE

✓ if the build-up is taxed, the benefit should be exempt from

tax

Employer contribution to an approved group scheme enables

him to treat premium as business expense and avail income

tax benefit for it under Section 36(1)(iv) of the Income-Tax Act

1961.

Employee's contributions to an approved group scheme are

eligible for tax relief under Section 80C of the Income-Tax Act,

1961.

Reinsurance is the process in which a ceding company cedes

part of the risk to a reinsurer. Reinsurer may be called insurer

of the insurer.

Reinsurance in life business may be broadly classified under

the following two heads - facultative: at a risk level and treaty:

at a portfolio level.