Dear Anu840,
Thre are generally two health benefits in most of the companies.
1. Mediclaim
2. Medical Allowance
Mediclaim works as Jerry and others have otlined.
However to get a claim under mediclaim it is a must to be hospitalised. Many companies and staff refer to this as hospitalization cover.
Medical Allowance on the other hand is an allowance which is a part of the salary structure or CTC. The income tax exempts tax on mediacal allowance upto Rs. 15000 per year on submission of bills and prescriptions. This is paid to employees as reimbursements.
I hope this clears your doubts.
Cheers!
Faizal Haque
Thre are generally two health benefits in most of the companies.
1. Mediclaim
2. Medical Allowance
Mediclaim works as Jerry and others have otlined.
However to get a claim under mediclaim it is a must to be hospitalised. Many companies and staff refer to this as hospitalization cover.
Medical Allowance on the other hand is an allowance which is a part of the salary structure or CTC. The income tax exempts tax on mediacal allowance upto Rs. 15000 per year on submission of bills and prescriptions. This is paid to employees as reimbursements.
I hope this clears your doubts.
Cheers!
Faizal Haque