# Section 36: Insurance Premium
Two distinct sub-clauses cover insurance premium payable by the assessee in the course of business.
## Section 36(1)(i) — Insurance of Stock-in-Trade
Premium paid for insurance against risk of damage / destruction of stock-in-trade or stores used in business is fully deductible.
The asset insured must be stock, not capital assets (capital asset insurance is governed by other principles).
## Section 36(1)(ib) — Health Insurance of Employees
Premium paid by the employer for the health insurance of employees is deductible, provided:
- Premium is paid by any mode other than cash (cheque, electronic transfer, etc.).
- Premium is paid under a scheme framed by GIC / approved insurer for the welfare of employees.
## Key Distinction from Sec 36(1)(ii)
Don't confuse premium on employee health (Sec 36(1)(ib)) with life insurance on key persons — the latter follows separate rules.