Can anyone provide the reference of law that allows payment of medical allowance of 1250 for those not covered under ESI
From India, Delhi
From India, Delhi
I GOT THE FOLLOWING INFO FROM THE DISCUSSIONS ON THIS SITE, BUT NOT SURE ABOUT WHICH LAW ALLOWS THIS. THIS WAS UNDER DISCUSSION IN AN AUDIT:
Madhu.T.K 3751 Click on follow to get recommendations from Madhu.T.K + @ ☰ #2
In respect of employees who are covered by ESI Schemes, you have no confusion, I believe. Now, in respect of those who are not under ESI, it is not mandatory that the employer should provide for any medical insurance and as you said it is okay if you pay a medical allowance of Rs 1250 every month along with salary. It is not compulsory that in case of sickness the employer should bear the expenses. However, in case of accident while on duty (I repeat, while on duty), the employer is liable to meet the expenses and even pay the compensation for partial disablement as is provided under the Workmen's Compensation Act. At the same time, if the employer had taken an insurance suitable to cover such accidents, naturally, the cost would have been less. In the case of accidents resulting in death also the employer has to bear the cost.
Medical allowance as a component of salary will not serve the above purpose for which separate accident/ death cum hospitalization policies should be preferred. The cost of it, ie, the premium should be paid by the company and not to be recovered from the employee. It is okay if you recover the premium paid in respect of any medi claim policy which is intended to cover hospitalisation expenses of the employees and their family.
Regards,
Madhu.T.K
13th February 2013 From India, Kannur
From India, Delhi
Madhu.T.K 3751 Click on follow to get recommendations from Madhu.T.K + @ ☰ #2
In respect of employees who are covered by ESI Schemes, you have no confusion, I believe. Now, in respect of those who are not under ESI, it is not mandatory that the employer should provide for any medical insurance and as you said it is okay if you pay a medical allowance of Rs 1250 every month along with salary. It is not compulsory that in case of sickness the employer should bear the expenses. However, in case of accident while on duty (I repeat, while on duty), the employer is liable to meet the expenses and even pay the compensation for partial disablement as is provided under the Workmen's Compensation Act. At the same time, if the employer had taken an insurance suitable to cover such accidents, naturally, the cost would have been less. In the case of accidents resulting in death also the employer has to bear the cost.
Medical allowance as a component of salary will not serve the above purpose for which separate accident/ death cum hospitalization policies should be preferred. The cost of it, ie, the premium should be paid by the company and not to be recovered from the employee. It is okay if you recover the premium paid in respect of any medi claim policy which is intended to cover hospitalisation expenses of the employees and their family.
Regards,
Madhu.T.K
13th February 2013 From India, Kannur
From India, Delhi
What Mr. Madhu T K had been posted in 2013 that if someone covered under ESI no issue. If not covered under ESI will be covered under EC Act or insurance in lieu of that. Both are absolutely correct.
But to pay 1250 /- per month as medical allowance is not mandatory. In 2013 15,000/- per year which is equivalent to 1250/- per month as medical allowance was tax rebate pocket. Probably that may be the reason for the post.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
335But to pay 1250 /- per month as medical allowance is not mandatory. In 2013 15,000/- per year which is equivalent to 1250/- per month as medical allowance was tax rebate pocket. Probably that may be the reason for the post.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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