Deduction of premium for insurance without employees consent

No they cannot do that without the employee consent. Moreove ESI or NO ESI anyone is at liberty to chhose Health Insurance policies of employees choice. Right to Health is Right to life and the MNC cannot determine what's best for the employee. You can sue them for taking you for a ride.

All establishments are covered by ESIC. However, for a particular employee to be covered under the purview of ESI, his salary should be within Rs.15,000/-.An employee who falls within the ambit of ESIC gets ESIC. Employers have been seen to delay however if the eligible raise their voice, employers arrange for ESIC coverage. Employee is within rights to lodge complaint if the employer does not concede to the demand and reminders. Employer shall face a penultimate action.

ESIC has an advantage; therefore if you are eligible you should obtain ESIC cover for self and family members. Kindly go thru the attachment “Retired, disabled staff eligible for ESI benefits” which was contributed by Mr. Shri Gopal Soni in the forum in the thread:

Forum Home > Labour & Service Law > Medical benefit payable despite no deduction

PF number might not be mentioned in your salary slip. Company might be deducting PF and depositing with concerned PF office with employer's contribution. You are within your rights to demand and get PF number as well as PF accumulation reports for the entire period of your service i.e. date of joining till date. You should approach in writing to the good office of Head-HR/appointing authority/MD. They shall positively supply you the PF number/reports. If the company does not supply you the PF number and accumulation reports, you can lodge complaint with EPFO www.epfindia.gov.in

You should appreciate that employer has been bearing the entire premium of health insurance till now.

If your remuneration package agreed upon as in your service agreement is based on CTC then in the CTC sheet supplied by the company health insurance premium positively would have been mentioned. If the company has declared that the premium has exceeded the permissible company limits, and has not issued any written circular/communication, and you have learnt the deduction of premium from salary slip only, then you can submit a humble communication to the good offices, that you have already submitted notice of resignation, and you do not feel that health insurance policy shall be applicable to you beyond effective date of your resignation, hence the premium charged may kindly be waived off or company may deduct the premium on pro rata basis only and refund the excess amount to you.

Kindly note that:

-If health policy is be issued to any employee and its dependants company shall ask for details of self+ family and photographs so that I. Cards bearing policy number etc can be issued for each member.

- And on effective date of your resignation, upon acceptance of resignation, the health insurance shall also get terminated. To avoid the gap you should arrange for insurance cover. You can have health insurance from any insurance company (life/non life) and the premium paid shall be eligible for income tax relief under sec 80(d) up to Rs. 15000/pa for self and family and another Rs.5000/ for dependant parent. If you avail now and if you keep the policy in force, without any gap/ break, you can avail better benefits and the cover up to the age of 80 years, for self/family/parents. It is felt that mediclaim/family floater policy offered by non life insurance companies is better and the one offered by United India insurance is still better. If you avail the policy thru Canara Bank (CAN Mediclaim) the premium is significantly reduced. Kindly evaluate all plans and take your own decision.

Hi 

Thank you all for ur reply

In case of Group Insurance Policy can employer deduct premium from salary of an employee?

Is it legal? Since amount is being deducted from employees salary 

and the premium amount and Insurance providers may not be of employee's choice.

and also i came to know

1) there is no contribution towards premium by employer. and entire premium is taken by employee only.

and

2) In case of any claim, 20% will be paid by company

Awaiting your replies

Thanks in Advance,

suresh

Sue the company for fraud.They can't rip you off like that. Moreover to my knowldge ESI is not applicable to Software Engineers.Just check up. You are liberty to choose the policy you prefer. Is India a Democracy? What about violation of Article 21 of your Constitution?

If its a US based MNC then lodge a complain here:

https://www.ic3.gov

Hi

Thank you all for the support ,

I enquired on this with a couple of people and i got mixed opinions.

My father works in the state Electricity board ( govt organisation) and there they have a similar scheme for Junior Engineer and below itseems

and the board has implemented it by giving a circular for the employees. 

and here also Gopal soni sir has given a similar opinion and nina has different opinion.

I wanted to clarify that i am not governed by the ESI act.

The scheme my employer has started is - Group Medical Insurance

and also in my previous post on state Electricity Board Employees, the scheme is - Group Medical Insurance only

Thats exactly what I was saying that ESI Act doesn't apply to Software Engineers. But you can take chhose any option you like for getting best healthcare and hence the right to life.

The basics of group insurance are:

Group Insurance is a plan of insurance which provides cover to a large number of individuals under a single policy called the “Master Policy." The individuals covered under the master policy are not parties to the contract. The contract will be between the insurer and a body that represents the group of individuals covered e.g. employer, trade or professional association, and the body is policyholder. The individuals are beneficiaries. The amount and terms of insurance are negotiated by the policyholder and not by the individual beneficiaries. According to the guidelines issued on 14.07.2005, individual members who are beneficiaries of the group are to be given confirmation of the benefits secured by the master policy. In case of employer-employee groups, the employer can give the confirmation to the employees. The premium will be paid to the insurer by the policyholder who may or may not collect the same from individuals concerned. In many employer schemes the entire premium is paid by the employer. Sometimes employees are made to contribute part of the cost. If the premium is collected from the individuals concerned by an employer, the premium may be deducted from their salaries. The extent of cover and terms are determined by the employer and not by the individual. The inclusion of the members in the scheme also is a matter on which the members will have no choice. Everybody fulfilling specified criteria will have to compulsorily join the group. Usually, when the scheme is being introduced for the first time, the existing members will be given a choice of joining or not joining the scheme, to be made within a specified time, will be final. All entries will be effective from the policy anniversary and exits shall be as per the conditions of the contract e.g. retirement, death, termination of the member from the group. The premium will change from year to year, any also change according to mortality experience of the group.

HR of your company can give you the detailed info to your queries, and is duty bound to do so. If you have any doubts you can collect the relevant info from the insurance company’s local office or raise RTI, and find out if employer is contributing any premium or not? You shall also know whether option of employer to opt for paying 20% of claim amount ( if it arises) in lieu of making contribution for premium is legitimate or not?

Mr. Shri Gopal Soni is having rich exposure to insurance and RTI and can give valuable inputs.

Hi Kumar sir,

Thanks for the detailed information and support.

You have mentioned as per guidelines issued on 14/07/2005, please give me the link where i can go through it. 

Regards,

suresh

Kindly check at the IRDA website. These details are very basic and you shall find it in basic book published by III for life insurance exam to be taken by agents also.

Thanks kumar sir

If the company has hired a private or a public sector insurer use insurance portability which started with effect from October 1, 2011.