Salary saving schemes (SSS)

Salary saving schemes (SSS) 

• Salary saving schemes (SSS) are intended to cater to the needs of the working classes.
• In these schemes the insurance company has an arrangement with the employer, whereby the employer deducts the premium from the employee’s salary and passes it on to the insurance company every month. 
• As the premium is deducted from their salary before it reaches the employee they do not need to worry about defaulting on the premium. 
• The insurance company also benefits as it receives the consolidated premium from the employer for all the employees who have enrolled on the scheme. 
• The employer makes the deduction for the premium from the employee’s salary based on an authority letter signed by the employee, which is collected with the proposal form and is sent to the employer by the insurer, when the policy is accepted. 
• A demand list containing the list of employees, their designation along with the amount to be deducted is sent to the organisation periodically by the insurance company. 
• A salary saving scheme is not a specific insurance plan. It is just a convenient arrangement to collect the premium. It can be used for a term plan, an endowment plan or any other plan as offered by the insurer under the SSS arrangement.

Anand Khemka
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