Premium paid on Keyman insurance policy is deductible even if it isn’t a pure life insurance policy

IT : There is no rational basis to confine the allowability of the expenditure incurred on the premium paid towards keyman insurance policy only to a situation where the policy is in respect of the life of an employee. So long as a policy is an insurance policy, whether it involves a capital appreciation or is under any other investment scheme, it meets the tests laid down under section 10(10D). The requirement of pure insurance policy is something which is not laid down by the statute.