Hi, my last day in my previous organization was 13 August 2018, and I joined another organization on 16 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.
Issue with Premium Deduction
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.
From India
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Issue with Premium Deduction
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.
From India
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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
From India, New Delhi
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5Deepak
PlanCover.com
From India, New Delhi
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Understanding Group Insurance Premiums
It appears your erstwhile employer covered you under 'group insurance,' where the premium is fixed considering factors like age, status, and wage levels. The premium for the entire group is usually remitted in advance, either half-yearly or annually. There is a provision to adjust the revised premium when insured employees leave midway after the policies are taken, but practically, they won't refund any amount for such discontinuance.
Types of Premium Payment Methods
There are three types of methods followed here:
1) Premiums 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. Your case likely falls into either category 2 or 3.
Considering Your Situation
Coming to your case, if you are covered under ESI, then there is no need to have group insurance. Therefore, since you are not under ESI, 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.
From India, Bangalore
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It appears your erstwhile employer covered you under 'group insurance,' where the premium is fixed considering factors like age, status, and wage levels. The premium for the entire group is usually remitted in advance, either half-yearly or annually. There is a provision to adjust the revised premium when insured employees leave midway after the policies are taken, but practically, they won't refund any amount for such discontinuance.
Types of Premium Payment Methods
There are three types of methods followed here:
1) Premiums 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. Your case likely falls into either category 2 or 3.
Considering Your Situation
Coming to your case, if you are covered under ESI, then there is no need to have group insurance. Therefore, since you are not under ESI, 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.
From India, Bangalore
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