PARTNERSHIP INSURANCE

A partnership  have a business jointly owned by several parties but which is not itself a corporate entity. The partnership is generally run in fairly personal way by the partners. This can create problems if one partner dies as his widow may not wish to take upon his role or may withdraw his share in the business. On the other hand, the co partner may not have sufficient funds to buy out the widows share. This may result in selling her share to an outsider. The value of share might have grown many fold after the partnership came into existence. The remaining partners may not like to have outside interference and instead of selling share to outsider, the remaining partners would like to buy out the share of the deceased widow. On these principle LIC allow partnership insurance on the lives of partners and as for as possible all the partners must be covered under partnership Insurance.

The following requirements are necessary for Partnership /insurance.

1.Proposal Form as per prescribed form.
2. Copy of Deed of partnership duly attested by the partner authorised to sign insurance proposal.
3. Copies of audited /balance sheet and Profit and Loss account for Last 3 years.
4. Copies of Income tax return statement of the firm for preceding 3 years, duly attested by the authorized partner.
5. The copy of audited Balance sheet containing schedule of partners capital accounts.
6.Letter of authority in favour of partner signing the proposal.