Dear HR Seniors, Does anyone in your company provide Group Medical Insurance? If yes, please share details like how you give this benefit. Do you deduct from employees' gross or does the company pay the premium amount? What kind of challenges have you faced in implementing this? I know in group medical insurance, staff don't get a tax benefit, so what can we do to provide a benefit as well as a tax benefit.
My Situation
Our HQ has approved this benefit, but they want to pay only 80% of the premium, and the remaining 20% to be deducted from the staff's payroll. Some of them are not happy with this as it's a deduction from their gross without any tax benefit! What can I do to minimize the loss?
What kind of setup do you have in your respective companies? Please share and advise.
Regards, Vineeta
From India, Delhi
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17My Situation
Our HQ has approved this benefit, but they want to pay only 80% of the premium, and the remaining 20% to be deducted from the staff's payroll. Some of them are not happy with this as it's a deduction from their gross without any tax benefit! What can I do to minimize the loss?
What kind of setup do you have in your respective companies? Please share and advise.
Regards, Vineeta
From India, Delhi
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Group Medical Insurance Inquiry
Does anyone in your company provide Group Medical Insurance? If yes, please share details like how you offer this benefit. Do you deduct from employees' gross salary, or does the company pay the premium amount? What kind of challenges have you faced in implementing this? I know that in group medical insurance, staff don't get a tax benefit, so what can we do to provide a benefit as well as a tax advantage?
Current Situation and Challenges
My situation: Our HQ has approved this benefit, but they want to pay only 80% of the premium, with the remaining 20% to be deducted from the staff's payroll. Some employees are not happy with this as it's a deduction from their gross salary without any tax benefit! What can I do to minimize the loss?
Seeking Advice and Experiences
What kind of setup do you have in your respective companies? Please share and advise.
Regards,
Vineeta
From India, Delhi
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Does anyone in your company provide Group Medical Insurance? If yes, please share details like how you offer this benefit. Do you deduct from employees' gross salary, or does the company pay the premium amount? What kind of challenges have you faced in implementing this? I know that in group medical insurance, staff don't get a tax benefit, so what can we do to provide a benefit as well as a tax advantage?
Current Situation and Challenges
My situation: Our HQ has approved this benefit, but they want to pay only 80% of the premium, with the remaining 20% to be deducted from the staff's payroll. Some employees are not happy with this as it's a deduction from their gross salary without any tax benefit! What can I do to minimize the loss?
Seeking Advice and Experiences
What kind of setup do you have in your respective companies? Please share and advise.
Regards,
Vineeta
From India, Delhi
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Group Medical Coverage Implementation
We have recently incorporated Group Medical coverage in our organization starting from June 2016. I am summarizing the policy and plan of action for you.
1) The entire premium amount is funded by the organization as it is a benefit provided to all employees. (Deducting a part of the premium from an employee's salary isn't advisable.)
2) Whenever an employee joins or exits our organization, the HR department informs the insurance provider to add or delete their name from the GMC policy.
3) Scope of Coverage
Covering hospitalization expenses in India for illness/disease contracted or injury sustained during the insurance period, subject to the limit of the Sum Insured, where hospitalization exceeds 24 hours.
4) Sum Insured
Family Floater Rs. 3 lakhs
5) Family Definition
Self + Spouse + 2 Dependent Children up to 23 years of age
6) Pre-existing Diseases
Covered from day one
7) Maternity
Not Covered
Honestly, I have not encountered any problems as we have not filed any claims to date.
Thanks, and I wish you all the best!
Regards, Yashodhan Dere
From India, Mumbai
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We have recently incorporated Group Medical coverage in our organization starting from June 2016. I am summarizing the policy and plan of action for you.
1) The entire premium amount is funded by the organization as it is a benefit provided to all employees. (Deducting a part of the premium from an employee's salary isn't advisable.)
2) Whenever an employee joins or exits our organization, the HR department informs the insurance provider to add or delete their name from the GMC policy.
3) Scope of Coverage
Covering hospitalization expenses in India for illness/disease contracted or injury sustained during the insurance period, subject to the limit of the Sum Insured, where hospitalization exceeds 24 hours.
4) Sum Insured
Family Floater Rs. 3 lakhs
5) Family Definition
Self + Spouse + 2 Dependent Children up to 23 years of age
6) Pre-existing Diseases
Covered from day one
7) Maternity
Not Covered
Honestly, I have not encountered any problems as we have not filed any claims to date.
Thanks, and I wish you all the best!
Regards, Yashodhan Dere
From India, Mumbai
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Group Mediclaim Policy Terms and Conditions
You can offer a Group Mediclaim policy to your employees under the following terms and conditions:
1. Sum Insured
The sum insured can start from 1 lakh and go up to your specified limit.
2. Family Coverage
Coverage includes the employee, spouse, and two children up to 21 years. A female child's coverage is waived after her marriage if she marries before 21.
3. Co-payment Option
Instead of 20%, you may opt for a 10% co-payment. Employees will need to pay this amount at the time of hospital billing.
4. Reimbursement vs. Cashless
Consider opting for reimbursement instead of cashless to help control the yearly premium.
5. Service Tax Benefit
The company can benefit from the service tax applicable to the premium.
If you need any further information, you may call [Phone Number Removed For Privacy Reasons].
Regards,
[username]
From India, Pune
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You can offer a Group Mediclaim policy to your employees under the following terms and conditions:
1. Sum Insured
The sum insured can start from 1 lakh and go up to your specified limit.
2. Family Coverage
Coverage includes the employee, spouse, and two children up to 21 years. A female child's coverage is waived after her marriage if she marries before 21.
3. Co-payment Option
Instead of 20%, you may opt for a 10% co-payment. Employees will need to pay this amount at the time of hospital billing.
4. Reimbursement vs. Cashless
Consider opting for reimbursement instead of cashless to help control the yearly premium.
5. Service Tax Benefit
The company can benefit from the service tax applicable to the premium.
If you need any further information, you may call [Phone Number Removed For Privacy Reasons].
Regards,
[username]
From India, Pune
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Group Health Insurance Funding and Tax Benefits
Group health insurance can be partly funded by the employee and partly by the organization. The amount funded by the employee will be declared in Form 16, and for that amount, the employee can claim tax benefits under Section 80D.
Please note this link for more information on how to structure group health insurance benefits for a new health insurance cover: https://insurance.plancover.com/inde...the-first-time
If you want further information on the premiums typically charged, please visit: https://www.plancover.in/group_health_insurance.aspx
Best,
Deepak
From India, New Delhi
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Group health insurance can be partly funded by the employee and partly by the organization. The amount funded by the employee will be declared in Form 16, and for that amount, the employee can claim tax benefits under Section 80D.
Please note this link for more information on how to structure group health insurance benefits for a new health insurance cover: https://insurance.plancover.com/inde...the-first-time
If you want further information on the premiums typically charged, please visit: https://www.plancover.in/group_health_insurance.aspx
Best,
Deepak
From India, New Delhi
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