Hi,
You can claim Section 80D Benefit for Medical Insurance for Self, spouse and children up to Rs. 25,000 for non-senior Citizens and Rs. 30,000 if the policy is for a Senior Citizen.
If the Treasury is not ready to accept the Insurance Premium of Rs. 21,800 u/s 80D, then let them deduct TDS accordingly. You can claim the same while filing your IT returns and claim Refund from IT Dept.