Statutory Norms for Medical and Accident Insurance
I have been working with several organized industries for over 15 years. Recently, I accepted an offer with a start-up organization. My CTC was mentioned as flat, and the deductions from my salary are for income tax. Recently, after much effort, the management decided to introduce PF and insurance benefits for its employees.
Now comes the problem. I have opted for a substantial medical cover for my family, and we have medical insurance suggested by the management for its employees, which seems not very beneficial. As my CTC is fixed, the premium will be deducted from my current salary, affecting my take-home pay. Since I already have a good insurance plan, I wish to opt out of this. However, the management insists that it is a statutory requirement as per the Factories and Establishment Act.
Kindly help me understand the requirements for medical and accidental insurance.
From India, Chennai
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I have been working with several organized industries for over 15 years. Recently, I accepted an offer with a start-up organization. My CTC was mentioned as flat, and the deductions from my salary are for income tax. Recently, after much effort, the management decided to introduce PF and insurance benefits for its employees.
Now comes the problem. I have opted for a substantial medical cover for my family, and we have medical insurance suggested by the management for its employees, which seems not very beneficial. As my CTC is fixed, the premium will be deducted from my current salary, affecting my take-home pay. Since I already have a good insurance plan, I wish to opt out of this. However, the management insists that it is a statutory requirement as per the Factories and Establishment Act.
Kindly help me understand the requirements for medical and accidental insurance.
From India, Chennai
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Better had you mentioned what your job is—whether a workman, a supervisor, or a managerial cadre employee—and what your employer's establishment is.
As far as I know, the only statutory insurance to be taken up jointly by the employer and employee is that of ESI, applicable to factories and other notified establishments for those employees whose monthly salary/wages are Rs. 15,000 or less. Therefore, your employer has no right to compel you to take up any Life Insurance Policy or Health Insurance Policy of his choice, particularly when you already have an insurance policy. It would be better to try to convince your employer politely. When you are not availing of the insurance benefit, no amount can be deducted from your CTC.
From India, Salem
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6108As far as I know, the only statutory insurance to be taken up jointly by the employer and employee is that of ESI, applicable to factories and other notified establishments for those employees whose monthly salary/wages are Rs. 15,000 or less. Therefore, your employer has no right to compel you to take up any Life Insurance Policy or Health Insurance Policy of his choice, particularly when you already have an insurance policy. It would be better to try to convince your employer politely. When you are not availing of the insurance benefit, no amount can be deducted from your CTC.
From India, Salem
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