Concept: This insurance can be utilized by companies and other establishments to provide peace of mind to their employees by making a provision for payment of a cash sum to the dependents in the event of death or permanent disability of any employee. There can also be a provision for an employee to be compensated for temporary loss of earnings, due to sickness or accident.
Sum Insured: This can be any reasonable number of monthly salaries for an individual employee. It can also be a fixed amount, varies with the job position of the employee.
Coverage: Natural Death, Accidental Death, Permanent & Total Disability due to accident, Permanent and Total Disability due to sickness, Partial & Permanent disability due to accident. The employer is required to give the list of the employee with their age and sum insured opted as also the brief description of the nature of duties.