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It's kind of like insurance. They deduct 1200 per month amounting to 14400 per year and they allow you to claim medical expenses for yourself, spouse and children for upto 30000 a year. Not a bad RoI if you are married, for freshers if you don't have medical expenses, it's kinda wasted... I mean how many contact lenses and spectacles can you buy!!!
As the name says it's medical assistance given to employees with amount defined as per the band for medical expenses reimbursements like opd, specs , child vaccination bills etc..