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TMI Blog2016 (12) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... - From the very object of keyman insurance it is evident that the service is availed for protecting the loss that may occur to the company in the event of death of the keyman. Needless to say that the Managing Director of the company falls within the category of keyman of the organization. In such circumstances the activity of insurance and auxiliary services availed for taking KIP cannot be said to fall within the exclusion portion of the definition. The KIP taken by the appellant is a pure financial step as per the requirement of various exigencies like repayment of loans, advances etc., which is intricately related to the financial aspect of manufacturing activity. On happening of contingency as the sum assured is paid to the company, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Policy (KIP) is taken in the name of Sh. Venkata Vishnu Raju Kalidindi, Managing Director of the company. He explained the nature of the KIP and the purpose for which the said policy was availed. He submitted that the Managing Director being a key employee of the organization the said policy is a special plan of insurance to meet the crisis in case the insured person/keyman meets any unforeseen incident like death. The policy, in such situation would help the company to meet the crisis of the loss of the keyman by getting a lumsum fund. He argued that the insurance policy though in the nature of a life insurance policy it is infact for the benefit of the company and therefore would not fall under the exclusion portion of the definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... keyman, it is seen that sum assured is to be paid to company. The intention is to meet the crisis which the company may undergo due to the death/loss of key person. From the very object of keyman insurance it is evident that the service is availed for protecting the loss that may occur to the company in the event of death of the keyman. Needless to say that the Managing Director of the company falls within the category of keyman of the organization. In such circumstances the activity of insurance and auxiliary services availed for taking KIP cannot be said to fall within the exclusion portion of the definition. The KIP taken by the appellant is a pure financial step as per the requirement of various exigencies like repayment of loans, adva ..... X X X X Extracts X X X X X X X X Extracts X X X X
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