Is It Fair for My Company to Deduct Full Insurance After Resignation? Seeking Advice

I have one concern related to my full and final settlement. I opted for an extended cover for medical insurance wherein I chose coverage for my parents (the company was providing default cover for me and my spouse). For the additional cover, an amount of 12K was to be payable by me in three equal installments (in the months of July, August, and September). The installment was deducted from my salary in the months of July and August 2013. However, I resigned on August 16th, 2013, and my Last Working Day (LWD) is October 10th, 2013. I asked my HR if the deducted amount would be on a pro-rata basis. HR informed me that the entire amount would be recovered from me. Additionally, as soon as I leave the company, the cover is withdrawn. This seems quite unjust. Can anyone help with this? Is this a normal practice? What action can I take, if any?

Thank you.

Your HR is absolutely correct. In your case, coverage for you and your spouse was a default inclusion as part of the Company's Group Insurance cover for employees and their spouses. Any addition or deletion to the Master of Employees covered has to be advised to the insurer. When an employee leaves the company, the cover comes to an end.

The additional cover purchased by you for your parents would have been an add-on to the same Group policy for employees. When you leave the organization, all group covers and add-ons automatically cease since you are no longer a part of the original group that obtained concessional premium rates.

If you wish to have insurance coverage, you need to get yourself and your family insured afresh on an individual family floater basis.