Medical benefit exemption depends on approved hospitals, prescribed diseases, staffing standards, and defined treatment conditions. Exemption of medical benefits from perquisite value is linked to treatment of prescribed diseases or ailments in hospitals approved by the Principal Chief Commissioner or Chief Commissioner. Approval depends on registration with the local authority and compliance with standards covering hospital building conditions, hygiene, beds, operation and labour rooms, sterilisation facilities, diagnostic equipment, staffing, and patient records. The rule also specifies the covered diseases and ailments and defines nurse, qualified doctor, and surgical operation for administration of the exemption.