Payment of premium on personal accident insurance policies :

If an employer takes personal accident insurance policies on the lives of employees and pays the insurance premium, no immediate benefit would become payable and benefit will accrue at a future date only if certain events take place.

Moreover, the employers would be taking such policy in their business interest only, so as to indemnify themselves from payment of any compensation. Therefore, the premium so paid will not constitute a taxable perquisite in the employees‘ hands [CIT vs. Lala Shri Dhar [1972] 84 ITR 19 (Del.)].