Medicalim policy premium payment after job change

Hi,

My last day in my previous organization was 13 August 2018, and I joined another organization on 16th August 2018. In the last company, I had to pay a monthly premium for medical coverage of 1 lakh rupees. Now, I am insured free of charge up to a sum of Rs. 3 lakhs in my new organization.

However, my previous organization is adamant about deducting the premium for the remaining financial year at the following rates:

Covered Up to Days % Deduction (of annual premium)
7 10
30 25
60 35
90 50
120 60
180 75
240 85
>240 100

I find this ridiculous and exorbitant. I want to cancel this mediclaim policy as it's of no use to me. Also, since my relations with the previous organization have terminated, why are they paying the premium on my behalf to the medical insurance company? I am not interested in this policy at all and don't want them to deduct this amount from my full and final settlement. However, they are refusing to remove this deduction.

Please advise me on my rights in this matter.

This is a voluntary coverage, and no one can force you to buy it. Not only that, this appears to be a group health insurance policy, and the employer will receive a pro-rata refund in case the employee leaves mid-year. You should not pay any premiums, and there is neither any financial loss to the erstwhile employer.

Deepak
PlanCover.com

It appears your erstwhile employer covered you under 'group insurance' which premium is fixed considering the age, status, wage levels, etc. The premium for the entire group is remitted in advance, normally with half-yearly or annually. There is a provision to adjust the revised premium when the insured employee(s) leave midway after the policies are taken, and practically they won't refund any amount for such discontinuance.

There are 3 types of methods followed here:
1) Premia fully met by the employer (no botheration for employees)
2) Paid in advance but shared 50 = 50
3) Paid by the employer in full in advance and deducted from salary monthly to cover no profit no gain. And your case falls into either category 2 or 3.

Coming to your case if you are covered under ESI, then there is no need to have group insurance. Therefore, you are not under ESI, hence they covered you under group insurance, I presume. No doubt the recovery action is arbitrary, but what practical, cost-effective, quick solution is available to you? Maybe you have to consider continuing the policy on your own instead of short-closing if it works out well for you.