Who is an Employee?
Employee is one who is employed by the company (employer) based on a contract in an employee-employer relationship to assist the company in various domains specified as per the contract.
What is an Insurance? (Source: Investopedia.com)
Insurance is a contract in which an individual or entity pays an insurance company in exchange for financial protection or reimbursement of losses resulting from a covered event
What is an Insurance Premium?
Insurance premium is an amount to be paid for a contract of insurance taken by a party
What are the types of insurance?
- General Insurance
- Health insurance
- Motor insurance
- Home insurance
- Fire insurance
- Travel insurance
- Life Insurance
- Term life insurance
- Whole life insurance
- Endowment plans
- Unit-linked Insurance plans
- Child plans
- Pension plans
What are the types of insurance in the UAE?
- Life Insurance
- Marine Insurance
- Property Insurance (motor, fire, marine)
- Liability Insurance
- Health Insurance
What are the types of health insurance plans in the UAE?
- Individual health insurance plans
- Family health insurance plans
- Senior citizen insurance plans
- Group/ Employee insurance plans
- Critical illness insurance plans
Input Tax Credit (ITC) on insurance premium paid for employees
The VAT law mentions two circumstances where an employer is able to reclaim VAT on employee benefits.
- Where there is a legal obligation to provide such benefits
- Where there is a contractual obligation or documented policy to provide those benefits to employees.