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Did you know? | Group mediclaim can’t be carried forward

Did you know? | Group mediclaim can’t be carried forward
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First Published: Thu, Apr 01 2010. 10 21 PM IST
Updated: Thu, Apr 01 2010. 10 21 PM IST
If you have a group insurance cover from your employer and you quit mid-year, you can’t carry your insurance benefits with you even if you have paid the premium for the entire year.
Why you can’t carry the cover:
In a group cover, you get health insurance from your employer and not the insurer. Till the time your insurer continues the cover, you have an insurance under the group policy. However, as soon as you quit, you are out of the group health cover that the insurer gives to your employer. By that logic, you can no longer use the insurance card.
But you paid an annual premium:
It doesn’t matter if you paid the premium at the beginning of the year. The minute you leave the firm, the insurance benefits will stop. Typically, the employer deducts this premium from your salary. Some companies, however, pay the premiums on the employees’ behalf for the entire year.
Is the money refunded?
If you paid the premium for an entire year and you quit mid-way, the insurer refunds the premium on a pro-rata basis to your employer. While some employers reimburse this amount in your full and final settlement, most of them do not. If you have paid for your health insurance policy under the group scheme, its worthwhile to ask your employer to reimburse the money. They may. They may not.
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First Published: Thu, Apr 01 2010. 10 21 PM IST