Is Mediclaim Be Given To Peramnent Employees Only

Dear All,

We are going to have a mediclaim policy in place very soon for our employees, plus their dependents up to three. One issue I am facing is deciding whether to provide mediclaim from the very first day of joining or to link it to the confirmation of an employee. It could also work as an incentive to stay back.

Another thought would be that in case an employee leaves before confirmation itself, it will add to the extra administration of deleting the employee from the policy and recovering the balance from the insurance company. For personal accident policy, we will enroll the employee from the very first day of joining.

Please advise!!

Best Regards,
Anu

Mediclaim, being a perk in most companies, is given only after confirmation. Administrative convenience aside, this also serves as a factor for employee retention.

Accident policy, yes, you need to be covered from day 1, regardless of the employee's status.

Rgds,
Venkat

Dear Anu,

Three things.

1) You can give Mediclaim Insurance to any category of employees you want to.

2) The Companies usually cover all regular employees except those under ESI.

3) I would not stick to a Company just because they are going to offer me Mediclaim after I get confirmed.

Regards, SC

Hi Anu,

Is Mediclaim given only to permanent employees? Isn't mediclaim more of a hygiene factor than a motivation? I would suggest you study the practices followed in your industry in Hyderabad and see what others are doing.

If I were to make a decision, I would choose to provide Mediclaim to all employees and not wait for their confirmation into permanent roles. I feel that providing Mediclaim after six months or a year would not really help in retaining people. My opinion may be skewed because of the industry in which I work.

Regards,
Gautam

No, Medicalim can be given to all employees, and it is a good benefit to them. It increases retention and reduces attrition from the beginning.

Many companies outsource their staff to us for staffing, and we take care of Medicalim for all contractual employees also with us.

Regards

Yes. It depends on the decision your management would take. To make mediclaim applicable to one and all, or only to confirmed employees. "Regular employee" refers only to confirmed employees. Hygiene? Unless the company offers, will anyone prefer to remain unhygienic? Irrelevant.

Irrespective of one's feelings towards it, companies do offer mediclaim as a part of retention technique. That is not the only factor. None can hold anyone in any company for any amount of money and perks. Yet, they constantly endeavor to create a culture to retain people.

In offering suggestions that are important to organizations, let there be suggestions most widely practiced. I conclude and leave it to the forum.

Regards,
Venkat

Hi,

Mediclaim is given to all employees from the very first day, regardless of whether they are on probation or confirmed. I don't think there will be too many hassles in taking care of it if an employee leaves before getting confirmed; generally, it doesn't happen. An accident policy is also provided to all of them from the first day. This is a benefit we offer to employees, and I have seen many companies include the premium as part of CTC as well. Therefore, you can't start this after confirmation.

Cheers,
Archna

Hi Venkat,

Sorry, Archana. Not all companies extend Mediclaim from day one. Your statement implies the contrary to this. Again, it is the option of the management. I too wish that companies should extend mediclaim from day one to all, but it is not so. In our own organization, the management has decided to extend it only to confirmed employees. Whom to cover is also at the discretion of management - self or self and family or self and dependents. However, while making a proposal to management, let it be advocated to include the employees from day one and to extend it to self and dependents.

Regarding people leaving before confirmation, we have instances of people leaving during probation. General or not, while making a policy, one should consider all aspects.

Inclusion in CTC... Ok... many companies include Gratuity payment prorated in CTC. However, for the employees who leave the organization before 5 years, the same is not being paid.

So, one has to take management's consent to extend any benefit.

Please don't mistake me. I am only trying to point out the different scenario that exists in practice.

Regards,
Venkat

Hi Archana,

Not all companies extend Mediclaim from day one. Your statement implies otherwise. It is ultimately the management's decision. I also believe that companies should provide mediclaim coverage from the first day for everyone, but that's not always the case. In our organization, mediclaim is only offered to confirmed employees, and the coverage extent, whether for self, self and family, or self and dependants, is left to the management's discretion. When proposing to management, advocate for including employees from day one and extending coverage to self and dependants.

Regarding employees leaving before confirmation, we have encountered such situations. Regardless of how common it is, all aspects should be considered when formulating policies.

Inclusion in CTC is common practice. Many companies include prorated Gratuity payment in CTC. However, employees who leave before completing 5 years do not receive this benefit.

Therefore, any benefit extension requires management's approval.

Please do not misunderstand me; I am simply highlighting the various scenarios prevalent in practice.

Regards,
Venkat

Dear Venkat,

I think you have not read my mail properly. What I have written is that "it should be given from the first day of the job." There is nothing I mentioned that all companies are providing mediclaim. You are correct that it is solely the company's discretion to decide on the mediclaim policy.

Cheers,
Archna

Dear Anu,

There is no rule that states the Mediclaim facility should be given to permanent employees only. It all depends on the company policy as to whether they would like to provide "day one coverage" or provide the facility after the employee is confirmed.

Mediclaim is definitely a benefit and can work as a retention tool if used wisely. A corporate Mediclaim facility has many benefits compared to a personal one that an employee takes, and those points can be highlighted.

When it comes to personal accident policy, if the service provider is the same as the Mediclaim policy, you can use the same datasheet and combine both formats so logistically, there should not be a problem.

However, when administering the Mediclaim, you should ensure that your timelines for additions and deletions are adhered to. Otherwise, the administration of the whole Mediclaim policy turns out to be a pain.