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WHAT TO KNOW ABOUT GROUP HEALTH MEDICAL INSURANCE PLANS

 

In modern times, it has become very important for employers to provide group health insurance coverage for all their employees. It is, in fact, one of the criteria that employees judge when considering whether they should join a company. Also known as corporate health insurance or group Mediclaim policy, this health insurance policy provides medical coverage to all the employees of an organisation.

These plans are very beneficial, not only for employees but also for employers. For organisations, a group Mediclaim insurance policy for their employees proves to be more affordable as compared to individual policies and is a selling point when recruiting new talent. On the other hand, employees can avail the benefits of having default coverage for medical emergencies.

What is the difference between an Individual and Group Health Insurance?

The most basic difference between the two is that while individual health insurance is purchased for the self and for the dependents a person may have, group medical insurance covers a group of individuals in a group under a single master insurance plan.

An individual insurance policy is a contract between the person being insured and the insurance company. These policies are provided based on the age and medical history of the individual and are not affected by their employment status. Individual policies also get more and more expensive as a person ages.

Then you have your group medical insurance, which is a contract between the company and the insurer. The issuance of the policy depends on the financial strength of the organisation and not an individual’s age, and its coverage can only be availed by an employee as long as they are employed by the organisation.

Benefits of a Group Mediclaim Insurance Policy for Employees

A group Mediclaim offers many benefits for employees, including:

1. Default Coverage

Many people want to buy a Mediclaim for themselves and their families but are unable to do so, and there may be many reasons behind the same. However, as group health insurance plans are paid for by the employer and cover all the employees, and sometimes even their dependants, it is an easy way for people to get the coverage they need.

2. Economical

To avail the coverage and benefits of a group health insurance policy, all one has to do is be an employee of the company. They get automatic coverage as soon as they join the organisation and do not have to spend their own money. Even if one wants to supplement the coverage of the group insurance with an individual cover, one can choose a less comprehensive cover at a lower premium.

3. No Need for Pre-Medical Screening

Several individual health insurance policies require an individual to undergo a pre-medical screening to see whether they have any pre-existing conditions and to ascertain their health before issuing the medical policy. However, group health insurance provides every member of a group coverage by default and does not need them to undergo any medical screening.

4. Easy Claims

Claims under group policies take the legacy of the employer into consideration and offer simple and hassle-free claim processes. Once the insurance policy has been accepted by an employee, they will be provided a health card, which they can show to initiate their claims. Employees can also expect support from their organisation when it comes to putting in a claim.

5. No Waiting Period

Under a group insurance policy, an employee is provided with full coverage of the insurance policy. Even pre-existing diseases like heart issues, diabetes, etc. are covered by the policy and there are no waiting periods involved.

6. Maternity Coverage

Neither do employees have to go through a waiting period for the maternity coverage to start nor do they have to take separate maternity insurance. Group health insurance provides all employees maternity coverage from day one.

With so many benefits to offer, group health insurance helps secure the health and well-being of an employee and their families.

Why Employers Should Consider Taking a Group Mediclaim Policy

A group Mediclaim policy has a number of benefits to offer to employers as well.

How Group Health Insurance Plans Work

A group health insurance policy generally involves a fixed amount as a sum assured to cover costs like accidental hospitalisation, disease treatment (specified diseases), etc. The coverage may or may not be extended to the family member of the employee, depending on the employer and the type of policy chosen.

The sum assured for each individual varies as depends on their salary package. This too varies with companies as increasing the sum assured means an increased premium as well.

With advantages for both employees as well as employers, group medical insurance is quite important. However, employees should keep in mind that the coverage can only be availed as long as they are working at the same company.

  • Low Premiums: One of the biggest benefits offered by a group policy is that employers have to pay lower premiums. As the group Mediclaim insurance policy for employees covers a large number of people, they are more affordable as compared to individual plans.

  • Tax Benefits: The premiums paid by an employer can be considered for tax deductions under the Income Tax Act.

  • Employee Retention: Retention is a very important aspect for all companies, which is why more and more corporates are becoming increasingly more employee-centric. A group Mediclaim is often used as a tool to attract and retain employees. Retention of old employees also reflects well on the image of the company.

  • Motivation: Having the coverage of a group health insurance for employees provides them with a sense of safety that takes a lot of stress of their minds, and even helps motivate them to perform better.

  • Premium Flexibility: Group health insurance for employees comes with a choice for companies to pay the premium monthly, quarterly, or annually

 

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