Understanding Mediclaim in CTC vs. Group Insurance: Should Premiums Affect My Salary?

I joined a new construction company. Please share the difference between the mediclaim allowance in CTC and Group insurance premium. If the company is taking a Group insurance policy for its employees, is it necessary to deduct the premium from employees' salary?

Regards,
Monica
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Normally, the Medical Allowance paid to the employee is taxable unless the employee submits medical prescriptions and medicine bills for the amount. The ceiling is Rs. 15,000 per annum.

Mediclaim Policy Coverage

Some companies cover their employees with a Mediclaim policy for illness for themselves and family members (numbers will be declared by the company). The Mediclaim policy premium will be deducted from the employee's salary, and claims will be processed only through the company.

Regards

In the CTC regime, any expenses incurred towards employees are counted in CTC. Group Insurance Policy vs. Mediclaim

Group Insurance Policy is different from Mediclaim. Both premiums are included in the CTC as the company is paying the premium for employee welfare.

Pon

If a company deducts mediclaim amounts from an employee (both for the employee and their parents) and pays these amounts to the insurance company, will the employee receive an 80D benefit?

Thanks in advance.

Regards,
Mahesh

Thanks, Sir. But I learned that the maximum amounts for:

1. Self, spouse, and children – Rs. 15,000
2. Parents – Rs. 15,000
3. Parents who are senior citizens (65 and above) – Rs. 20,000

If the company deducts Rs. 20,000 from us and pays it to the insurance company, will we get the 80D benefit? I think the papers must be in our parents' name.

Thanks,
Mahesh

It is not compulsory for the company to deduct the premium amount from the employee's salary. There are several companies that provide group mediclaim policies as part of their employee benefit schemes, and the premium is paid by the company itself.

Regards