Policy FOUR – B Effective January 1,

No Date 2002
Policy MEDICAL REIMBURSEMENT Review January 1,
On POLICY Date 2004

1. OBJECTIVE

To provide guidelines for the purposes of claiming the Medical

Reimbursement component of their compensation.

2. ELIGIBILTIY

Employees in Band 5 and Band 6 who are not covered under the
Domicilary Medical Benefit policy.

3. ENTITLEMENT

Employees are entitled to reimbursement on the production of bills

up to a particular limit as per the terms of their appointment and as
may be revised from time to time.

4. POLICY DETAILS

a. Employees can claim reimbursement to the extent of their

entitlement on production of bills. The bills should pertain to
medical expenses (i.e. medicines and related items) towards self,
spouse, dependent children or dependent parents.

b. As far as possible all purchases should be accompanied by a

prescription from a qualified Medical practitioner.

c. The unclaimed amount will be computed and paid off as ex-gratia

in the month of March as a special taxable allowance.

d. Any medical reimbursement amount unutilized during a particular

month will be carried forward to the next month or till March every
year.

E.g. An employee joins on September 1, 2001 and is eligible for

Medical Reimbursement at the rate of Rs 15000/- p.a. He can claim
up to Rs 8750/- at any time on or before March 15, 2002. Any

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VP–Finance VP-Corporate HR CFO CEO Director

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 unclaimed amount will automatically be paid off along with the
March Salary as a taxable component of salary. From April 1, 2002,
he will be entitled to claim a maximum of Rs 15,000/- (for the period
April 2002 – March 2003). If he has submitted bills worth Rs 9000/-
till March 15th, the balance unclaimed amount i.e. Rs 6000/ - will be
paid out in the salary for March 2003 and will be taxed at the
applicable rates.

e. All payments of Medical reimbursement are subject to Income Tax

as per the relevant provisions of the Income Tax Act. In case the
total amount of reimbursement for an individual exceeds the
specified upper limit in a financial year according to the prevailing
Income Tax laws and tax will be deducted at source.

4. OPERATING PROCEDURE

1. Employees can claim reimbursement by filling in the Cash Payment

voucher and attaching the relevant bills.

2. Payments to be made under this policy will be administered by the

Accounts Manager.

3. All bills will need to be submitted to the Accounts Department by

the 20th of each month latest, based on which the reimbursement
will be made.

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VP–Finance VP-Corporate HR CFO CEO Director

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