Could the employer premiums paid for individual disability insurance policies taken out in respect of all the management employees be considered to be premiums paid respecting a group sickness or accident insurance plan?
The Directorate indicated that this turned on whether there was a plan, namely, an agreement between the employer and the employees or a group of employees. If there was a plan, it could include one or more insurance policies. However, in order to determine whether an individual policy was part of the group plan, the level of benefits provided by the policy and the ratio of premium payments as between the employer and the employee must be similar to those of other employees covered by the plan.