An employer may take out a medical insurance policy under which the employer is the insured person. When an employee requires medical treatment, the employer claims the expenses incurred against the policy.

In this event the premium paid by the employer is not a benefit chargeable on the employee, because the employer and not the employee is the beneficiary of the policy. But if an employee requires treatment and the employer incurs the cost and is reimbursed by the insurance policy, this amounts to a benefit to the employee equal to the amount of the cost incurred on the treatment.

For more information on the tax treatment of medical expenses and treatment for an employee incurred by an employer look at EIM21760 onwards.

Follow this link for guidance on medical insurance under which an employee is the beneficiary.

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