Query on group insurance schemes

Also I wanted to mention that we are new to such group insurance schemes deductions.

In Previous years Insurance Premium was mentioned, but not as a part of the salary but as a additional cost beared by the company as part of the CTC

Hi suresh,

I believe you have raised the same query under the caption " Deduction of premium for insurance with out employees consent" and our learned friends given their opinion and suggestions.

Regards - kamesh

Under the Payment of Wages Act, no deduction can be effected from employee's wages/salary unless the employee gives specific consent/authority in writing. Hence even if they have circulated any information about any group scheme, no deduction can be made unless you have confirmed by a written consent

Hi Vasudev sir,

Thank you very much for the reply

That is what i was exactly thinking

If we are in any group, the group holder can form N number of such group policies, he inturn can get commision. and deduct a considerable amount from the group members. If it were to be legal

Please correct me if I am wrong.

Regrds,

suresh

Learned Mr. Vasudevan has given valuable advice. Kindly follow it.

 In this post you have mentioned that "In Previous years Insurance Premium was mentioned, but not as a part of the salary but as a additional cost beared by the company as part of the CTC"

You had not mentioned it in your another post on the same matter, which is;

Forum Home > Others > Labour & Service Law > Deduction of premium for insurance without employees consent

https://www.lawyersclubindia.com/forum/Re-Re-Deduction-of-premium-for-insurance-without-employees-consent-46155.asp

 You have posted in your other post mentioned above that during previous years company was paying the total amount of premium. And then it was included in CTC. Thus company has not deducted it from your earned salary/wages.

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? The reply by RTI shall help you. You should find out 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? You can visit the nearest office of LIC also, and meet some of the senior DO, or CRM section, or the Trainer. These officials are highly knowledgeable and helpful. The matter is related to principles of insurance and company must have obtained legal consultation before implementation.

With reference to your points number 2 & 3 mentioned in this post, although you have not given any concurrence, company has already replied stating “all active employees on 1st of the deduction month have to compulsorily join and i cannot opt out of it”. Is this reply in writing?

You may go thru the details of group insurance provided to you in your post whose link is mentioned above, and is attached also.

You have mentioned in another post about “lien on my FD and service agreement” that company has caused harassment to you. Hence if the company is offender, it should not be spared.

In future kindly make it a habit to confirm your humble acceptance or rejection, in writing.

Kindly go thru the attachment.

Hi Kumar sir,

I have all communication in mails. I even have all the circulars sent by them on mail. salary slips for proof of deductions. and the pdfs of the scheme. I have taken all the required documents.

My only doubt is on legality of the deduction. As some are saying it is legal and some are saying it is not

Regards,

suresh

I will raise an RTI as kumar sir suggested after i recieve my full and final to the insurance company and contact the HR of my company for furthur validity and clarification. and post the development of the same

In the meantime if it is conducive for you, then you may post the circulars, emails exchanged with the company.

Learned experts/members may be in a position to give opinion which can help your cause.