1. #1
    Unregistered

    How medical allowance and medical insurance are different from each other?

    I am working in one of the fortune company. In my payslip there is one element called medical allowance. They cut some part of salary every month on medical allowance. Do company itself provide us medical insurance. Are this money get deducted for the same? Or Medical insurance is completely different from this?

  2. #2
    chand Array
    Join Date
    Aug 2012
    Posts
    54

    Re: How medical allowance and medical insurance are different from each other?

    the medical insurance provide by the company but it depend upon the company which type the insurance they will provide..so the employee gets all the facilities like hospitalization and other which required in hospital..ya company itself provide you medical insurance..every month it will be deduct from your salary..

  3. #3
    looser Array
    Join Date
    Jul 2012
    Posts
    619

    Re: How medical allowance and medical insurance are different from each other?

    HI FRIEND,

    MEDICAL ALLOWANCE AND MEDICAL INSURANCE ARE ONE OTHER THE SAME.

    MEDICAL ALLOWANCE IS NOTHING BUT THE AMOUNT THAT IS CUT FROM YOUR SALARY EVERY MONTH.


    THE BENEFITS OF MEDICAL ALLOWANCE ARE:-

    1. WHEN YOU SEEK ANY MEDICAL HELP FROM A DOCTOR THEN YOU WOULD BE ABLE TO TAKE THE TREATMENT FOR FREE.

    2. THE COMPANY WOULD SUGGEST YOU A HOSPITAL WHERE YOU CAN SEEK THE DOCTOR FOR YOUR HEALTH CONCERNED PROBLEMS.

    Mediclaim is term which usually refer to an Insurance Policy which gives medical coverage to the member.

    It commonly has two systems:-

    1) Reimbursement of Medical and Hospital Expenditure upto the Specified Limits for all covered.

    2) Cashless policy whereby you have to produce your Medical Insurance Cards to avail benefits.

    3) The Mediclaim is not Taxable on the hand of the employee.


    Medical Allowance is a type of allowance which forms a part of Salary and is paid at fixed interval of time (as decided) and has no connection with the expenses incurred on medical.


    This is usually taxable and tax relief is provided in case the employee files relevant documentary proof of medical expenditure.

    The suitable Policy followed nowadays is reimbursement of Medical Expenditure.

    The employee is usually paid against Medical Expenditure incurred, and this amount becomes non taxable, if the employee wants he can simple ask and take the money without incurring any medical expenses but this amount becomes taxable.

    all the best.

    thanking you.






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