Currently, deduction of mediclaim premium is allowed in the year in which the payment has been made.
There are many mediclaim policies available in the market for which a single premium is payable in year one but the policy cover is for more than one year. These policies are more economical compared to traditional yearly policies.
Pro-rata deduction of single premium paid in year one should be allowed over the term of the policy. E.g. if the premium paid is Rs. 42,000/- for a 3-year policy, Rs. 14,000/- should be allowed each year starting from the year in which the payment has been made