Question

What is a key characteristic of salary savings schemes for employer and employee groups in India?

a.

Individual contracts are issued to the group as a whole.

b.

Contributions are deducted monthly and remitted to the insurance office by the employees.

c.

Contributions are automatically deducted from payroll and remitted to the insurance office by the employers.

d.

Contributions are made voluntarily by the employees and remitted directly to the insurance office.

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Contributions are automatically deducted from payroll and remitted to the insurance office by the employers. Explanation:In India, a key characteristic of salary savings schemes for employer and employee groups is that contributions are automatically deducted from payroll by the employers and remitted to the insurance office. Unlike individual contracts where contributions are typically made directly by the insured individuals, salary savings schemes involve automatic deductions from employees' salaries by their employers. This method of contribution collection simplifies the process for both the employer and the employees, ensuring regular and timely payments towards the insurance coverage.

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Q. What is a key characteristic of salary savings schemes for employer and employee groups in India?
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