II. Emergency Loan system:
a] The Management can sanction a fund [EEFund] with a corpus of ,say, Rs. 3 Lakh.
b] An employee can be sanctioned a maximum of Rs.10-15 thousand as emergency fund.
c] This can be repayable in 6-10 EMIs without interest.
d] First come first served [or increase the corpus]
e] The corpus has to be repleshished by the repayment of EMI's by the employees.
f] In the event of death of the employee, this amount can be written off , and management can fill the gap.
As mentioned by you, this can be sanctioned for medical emergency , and while the insurance is in progress. If he receives full reimbursement, then that can be used repaying the Loan.
Hope this gives some idea..
23rd January 2007 From India, Madras