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Employer-Employee Insurance Scheme is an insurance arrangement between the two, where, the employer purchases an insurance policy for the employee. This arrangement is based on the principle that the employer has an insurable interest in his/her employees. The interesting fact is that both the employee and the employer is benefited through this arrangement.Combined shareholding of the employee and his or her relatives such as a spouse, children, in-laws, parents, siblings, etc. in the employer company should not exceed 51 %.