Mediclaim reimbersument tds

Dear CAs, Need some help. I am working in Pvt company which provides group health insurance (which is provided by a pvt insurance company). Last month I incurred medical expenses (in a private hospital) for treatment of my daughter. I submitted all the relevant documents to insurance company which granted my claim (say Rs. XXX). No problems so far. My Query is: 1. This sum Rs. XXX will be paid by the insurance co to my company which will add this sum to my next salary. Question is: Will this Rs.XXX be included in my salary for the purpose of TDS? 2. I guess the relevant section in this case is Sec 17 of IT Act. I did go though this but could not get clear answer to my query. Thanks in Advance, -Ha