How Can Medi-Claim Insurance Benefit Both Employees and Employers? Share Your Thoughts

Medi-Claim Insurance for Employees

We are planning to implement medi-claim insurance for our employees. I am requesting everyone to provide some input on this matter and how it benefits both the employees and the employers. Please share your valuable opinions.

Regards,
Yohan
HR

A group mediclaim policy subscribed by the company is equally beneficial to both employees and employers. Employers bear the cost of the premium for the employees, and medical benefits are enjoyed by the employees in the form of Cashless Treatments/Medical Expenses Reimbursements (as per the terms & conditions of the policy availed).

Employees benefit by not spending on hospital expenses. The entire process is coordinated by the employer through a third-party agent (TPA) who is responsible for issuing ID cards, authorizing treatment, and processing reimbursement claims.

Employers benefit by securing the medical needs of their employees.

Hope the info is clear!!

Regards

For employers: It allows them to benchmark their benefits as per industry standards and also removes the financial risk to employees in case of hospitalization. Quite often, long-time employees come to management expecting the company to assist them in such cases. It's a good attraction and retention tool in SMEs.

For the Employee: It helps reassure them that they have coverage in case something were to happen to them or their family, leading to heavy expenses in a hospital.

Please let me know if you need any further information.

Regards,
Deepak

A private limited firm takes mediclaim policies from LIC of India for their 35 employees in their name, but the premium is paid by the company through a cheque. Is it possible to adjust the premium amount in the company expenses for income tax purposes? Is it admissible? If so, is there any specific income tax act number related to this matter?

Corporate Social Responsibility and Employee Benefits

It is a part of CSR. If the premium is borne by the employer, employees will be happy. Nowadays, many corporates/companies are covering their employees under medical insurance.

Regards,
Pon