Proof of insurance is a document that can be used to verify that an individual is covered by insurance. Health insurance is the most relevant insurance policy regarding HR, as it’s used for filing income taxes.
When filing taxes or taking health services, an individual may be asked to present proof of their health insurance. While Internal Revenue Service, or IRS, may not require the submission of proof, it’s still safe to carry a health insurance card.
If your job requires you to drive a lot or use your car for their services, you’ll need to be covered by car insurance. Your employer may ask you to show proof that you’re covered to ensure proper protection of you and the business.
What Can Be Presented as the Proof?
While you may not need proof for every situation, there are some documents you’ll need to show, depending on the institution asking for them. Below are a few examples of health insurance documents you can present as proof.
A member ID with proper validation;
A ‘Certificate of Coverage,’ which is a letter issued by the insurance company that verifies your insurance coverage and states that you’re active in group policy as an employee;
Health insurance marketplace statement, Form 1095-A, if you’ve purchased a plan through the health insurance marketplace;
Form 1095-B if you purchased health coverage directly from an insurer or if you’re employed in a small company consisting of fifty employees or less;
Form 1095-C, an employer-provided health insurance offer and coverage if a plan sponsored by your employer covers you;
Form 8910 if you’re using a motor vehicle, such as a car, for business purposes;
Form 8936 if you’re using an electric vehicle, whether two-wheeled or four-wheeled.
How Can You Obtain the Proof Document?
As mentioned in the previous section, you must complete and submit forms 1095-A, 1095-B, and 1095-C to obtain proof of your health insurance. To obtain proof of your vehicle insurance, fill out and submit forms 8910 or 8936, depending on your vehicle category.
Typically, the insurance company will send you the proof documents once you purchase an insurance policy. You may also download an insurance card which you can use temporarily until the hard copy arrives. Then, every time you renew your insurance or make changes to the coverage plans, you’ll receive a new card for the newly issued copies.
Can You Show the Document on Your Phone?
It’s always a good idea to carry photocopies of your insurance documents in your car so you can present them whenever needed. However, depending on state laws, you may present proof of your insurance documents electronically, such as on your phone.
You can carry your insurance card electronically. Ask your insurer to send you a softcopy via email, or you can simply download it if they have a website where you can access your insurance card. This way, if your employer has the arrangement of receiving softcopies and saving them in their HR database, you can simply email them your documents.
Are there Penalties if You Can’t Show it?
Although showing proof of your health insurance for your income tax returns is unnecessary, it’s better to carry it. And if you can’t show it when they ask you to, you should assist them with your insurance information so they can search for it, or you can present the document as soon as possible.
Whether for health or your vehicle, you'll face a fine if you don’t update your insurance card. Make sure to follow through with the guidelines properly to avoid further legal issues. And if you’re uninsured, you may face a fine as it’s considered a serious offense in many places.
Be careful not to present falsified proof, as it’s easy to trace the documents in the insurance database. In addition, it can lead to negative consequences like fines, suspension from duties, termination from the job, or even arrests.
What Happens if You Lose the Document?
If you lose your proof of health or vehicle insurance, you won’t face a penalty. However, you’ll need to go through specific procedures to avail your documents again, such as attaching identification documents, to avoid getting fined for not issuing a request timely.
Provide a document showing your face on your driver’s license or passport. Or, if you don’t have a photo identification document, you can provide an official certificate. You must issue the request as soon as you lose your health insurance.
If your insurance card is damaged, you must show the damaged card as proof. The rest of the requirements are the same as when you lose your card.