What happens if employer fails to pay employee's premium ?

Submitted by Anonymous (not verified) on Wed, 10/05/2005 - 11:07

If an employer failed to pay the premiums due to some financial difficulty will the coverage still be available for the employee? Any help will be appreciated.

Posted: 31 Oct 2005 09:53 Post Subject: Coverage for the employee

The employee will loose coverage. If the premium is not paid, the coverage will be terminated automatically. And problem may arise if someone received a medical attention.
Great Experience
:)

Posted: 25 Jan 2008 05:13 Post Subject:

Well, I'm sure that if the employer is legally obliged to keep the policy going, then he could get in some nasty trouble. Not limited to lawsuits, being bankrupt and the stock price plummeting due to said consequences.

The employee will lose the policy, I don't know for sure how much trouble the company will get in, but one things certain, they might end up having to pay for the employees injuries out of their own pockets. But if you can't pay a measly premium every month, having to fork out medical costs is a big fat NO.

Posted: 25 Jan 2008 07:02 Post Subject: stability judgement

Hi...I believe thats solemnly the reason why we'd need to judge the financial strength of our employer through different phases, in order to be able to decide whether to opt for such a coverage benefit wherever we have the option.
Regards,
Fatman

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