In a group insurance policy, all changes need to be made through the employer

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My employer covers me for a group personal accident policy for a sum assured of 1.5 times my annual income. In case of my death, my family is likely to get this amount. My company has not asked me for a nominee. What’s the process to fill in the nominee details and can this be done online?

—Mehr Gariya

In a group policy, insurers allow the employer to decide whether the beneficiary would be the company or the employee’s nominee. In case it is the company, the insurer will pay the benefit to the company, who in turn will pay to the employee’s nominee or family members. If the employer wants the insurance proceeds to be directly paid to the employee’s nominee, then it can choose whether or not to declare the nominee upfront. If the specific nominee is not declared upfront, money will be paid to the legal heirs of the employee. To make a claim, legal heirs will have to provide a court-approved succession certificate. If the specific nominee is declared upfront, then the policy proceeds are directly paid to the specified nominee, after due verification.

In a group policy, all changes need to be communicated via the employer. So clarify with your employer on the type of arrangement they have for claim settlement. You should then provide your nominee details to the employer for updating the insurer’s records.

I am covered by a group medical insurance by my employer for2 lakh. It’s a family floater for me, my wife and my daughter and the premium is borne by my employer. In order to add my parents to the group insurance, I paid about 14,000 which was deducted from my salary. Further, in order to increase the overall cover from 2 lakh to 10 lakh, I paid an additional premium of about 14,000 which was again deducted from my salary. I want to know if I can claim income tax deduction under Section 80D on the premium paid by me for adding my parents in the group medical insurance and for increasing the overall policy cover?

—Akshay Jain

Section 80D allows deduction on premium paid for health insurance. This deduction is available to the person who pays the premium. Whether or not, the deduction will be allowed to you depends on the manner in which the payment is routed to the insurer and the manner in which the expense is booked by your employer.

The treatment of this can vary by employer. In several cases, employers do arrange to pass on this deduction benefit to employees.

Abhishek Bondia is principal officer and MD, SecureNow.in. Queries and views at [email protected]

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