In this case employer should take care of showing LIC Premium as part of salary only and not as Welfare Expenses. (Fortunately there is no question of FBT here onwards).
Now I would like give practile recommendation that in your case why then ER is paying LIC premium, if they dont want to show as Welfare Expenses. Instead increase the Salary (CTC) of EE to that extent of LIC Premium. Then no further doubts will arise. And if you want to see from ER point of view (that Proposal is ER only) then it must be Welfare Expenses. Because ER can pay premium for EE only for the period of his employment with ER.
However a word of caution! Make an assesment of your insurance needs and then see whether your company's initiatives on insurance is sufficient. Chances are it will be short of your requirements.
Yes, company can claim the premium paid by them either in employer welfare scheme or claim in any other expenditure and claim under section 37 (1) of Income tax.
Where the premium will be considered as a receipt in hands of employee and they can claim the same under section 80 CC for LIC policy and section 80 D for medical insurance policy.
I have one more policy where employee can get tab benefits with immediately and employee can received pension at their retirement
If any of members from this group want more in detail they can free to call me on 98210 14796.
Take the case of TDS deducted and remitted to the govt. a/c on behalf of an employee by his employer. The amount so deducted was included in his CTC. similarly, he deducts and pays the LIC premium on behalf of an employee basically to ensure that the employees are making some savings. This can be surely claimed u/s 80ccc. the amount would also included in the employee's taxable income too. May be this has no impact but the idea is to make employees save.