Approval of reimbursement of medical expenses incurred beyond the ceiling mentioned in the total managerial package - Companies Law - Circular Letter : No. 2/10/99/CL.VII,

Circular Letter : No. 2/10/99/CL.VII, dated 28-10-1999, issued by the Department of Company Affairs. Subject:- Approval of reimbursement of medical expenses incurred beyond the ceiling mentioned in the total managerial package I am directed to refer to this Department s Letter No. 2/31/CL.VII/95, dated 7-11-1996 on the above subject and to say that on further consideration of the matter, it has been decided to modify the said letter dated 7-11-1996 by substituting the following sub-para (a) in place of existing sub-para (a) : (a) Having regard to the improved medical facilities available in India, the managerial personnel should obtain specialised treatment abroad only in exceptional and deserving cases. All proposals for reimbursement on specialised medical treatment abroad must invariably be accompanied by an essentiality certificate issued and signed by Director General of Health Services of the concerned State Government/Union Territory. The requirement for production of essentiality certificate may however, be waived on the satisfaction of Central Government in genuine and deserving cases of medical emergency as a special case. Such proposals may be considered on merits on the basis of the circumstances of the case, financial position of the company, period of association of the concerned managerial personnel with the company, amount of total managerial remuneration and medical reimbursement paid to the managerial personnel in the past and other relevant factors.