Legal Action for Unpaid Medical Bills: What Should My Friend Do Next?

Dear All,

This is regarding a case at our site where one of our employees underwent an operation, and he is not on the company's payroll. At the time of his operation, he was informed that his employer would reimburse all expenses as he was covered under mediclaim. However, his hospital was not on the panel list, so he paid all expenses out of his pocket. Now, after two months, he has discovered that all his bills are still lying at his employer's site.

In his conversations with his employer, they keep telling him that his bills are in the process. Now, he is considering taking legal action against his employer, as he is a good friend of mine. Therefore, I request all of you to please provide your valuable suggestions on what he can do in this case.

Awaiting your reply.

Hi Shivraj, let us first determine whether the mediclaim covers the particular operation that was done to your friend. You have two options:

1. If the operation is not covered under the mediclaim policy, then even if your friend opts for legal proceedings, it will be useless. This is because the mediclaim policy itself has predefined standards about the inclusions and exclusions of coverage.

2. If the operation is covered, even though the name of the hospital is not mentioned in the panel list, it is the insurance company's responsibility to reimburse the cash subject to the coverage amount. If the insurance company is least bothered in this regard, you can suggest to your friend to pursue legal proceedings.

Correct me if I'm wrong.

Hi Shivu, why does your friend want to go the legal way? Why not follow up with the company for payment of his bills? Going legal can be considered, but what is the evidence that the bills are still in the office and have not yet been sent to the insurance people? The company can deny having anything or destroy them; that can happen. Also, in order to recover the amount, you will lose much more money if you choose the legal way. Wait for some more time, follow up with them aggressively, and I'm sure you can get things done politely rather than filing a lawsuit.

Regards, Archna

Legal Considerations for Delayed Reimbursement

First, determine the basis on which he wants to pursue legal action. This situation appears to be a case of slow administrative processing. He should investigate the reasons for the delay, whether it stems from the administration, accounts, or policy matters. Based on this, he should communicate with the respective departments regarding his claim. If there is an option to escalate the matter to the Managing Director, that would be advisable.

This issue is entirely internal. Since you mentioned he is not on the payroll, how is his payment being processed? Under whose supervision is he working? How is his attendance recorded? Ensure that any employee working for you is either on your payroll or contractor rolls to avoid legal complications.

Management Responsibility for Workplace Injuries

Regarding the operation, if the injury occurred at work, it is the management's responsibility to cover his total medical expenses, regardless of whether he is a contract, casual, or regular employee, unless he is not covered under ESIC or a workmen's compensation policy.

Regards,
G.B. Mahendra Kumar
Fortune Hub - One Stop Solution for the Total HR Domain

One quick question: Can the mediclaim be processed even if the employee is not on the payroll?

Regards,
CS Mukesh Tank

The condition/situation mentioned in the above discussion clearly states that he can use the legal option by way of vicarious liability under the Law of Tort.

Thank you.

Dear All, thank you for your help. Regarding my concern, I agree with Archana that my friend should go and talk to seniors to escalate the matter. Once again, thanks to all for your contribution.

Before actually considering legal actions, please read the first statement:

Clarification on Employee Status

"This is regarding a case at our site as one of our employees had gone through an operation and he is not on the payroll of the company."

First of all, we need to be clear when a person is not on the payroll: is he a direct employee, an employee on voucher payment, or an employee from the contractor side? Secondly, are the mediclaim/ESI benefits extended to the employee? If the employer has extended one of the benefits, the employer can be questioned for reimbursement of expenses. If the employee is not given any benefits and if it is only out of Employee Relations that the employer has agreed to reimbursement, we need to sort it out with the employer.

I think we need to work on the above two cases and see what best can be done.

Regards,
Kumar