Employee Resigning During Probation: How to Handle Full Medical Expense Claims?

Hello,

One of my employees joined in January and submitted his resignation by the end of March. Currently, he is serving the notice period, but the issue is that he is claiming the full amount for medical insurance. How should I handle this expense, and who should resolve this issue?

Hi Sruthi, with the medical insurance being paid out by the insurer, this should not create any losses for the employer if the employee claims the full medical insurance limit before the last working day. However, if it is a case where the employer initially pays the full year's premium to the insurer or TPA and then deducts the amount on a monthly basis from the employee's payroll, this becomes a concern if the employee exits early. This is because, with a payout already done, the excess paid premium cannot be refunded from the insurer.

Therefore, unless the employee had been made aware at the beginning that his full year's insurance premium would be recovered if he exits early after making a successful insurance claim payout, nothing can be done.