Insurance

All You Need To Know About Group Health Insurance Policy In India

As is clear from the name itself, a group health insurance cover offers coverage to a group of people and extends cover also to their dependent family members such as spouses, parents, and children.

Employer organisations usually opt for Group Health insurance coverage for their employees, and the organisation typically bears the cost of the premium.

Group Health Insurance Policy In India

Unlike Individual health insurance, a group health insurance policy doesn’t get costlier with age and does not have any waiting period. Additionally, it offers the following benefits to the employees of the organisation.

Easy Claim Process 

Due to the ongoing relationship with the insurer and employing organisation, the claim process for the employees is quite simple, speedy, and hassle-free. They just have to accept the health insurance policy and present the health card to initiate any claim.

Low-Cost Affair 

As and when an employee joins an organisation, he/she automatically gets covered under the group health insurance policy. No extra costs are required to get the coverage.

Default Health Insurance Cover

With the group insurance policy, health insurance cover comes as a default and the employees do not have to pay for any premiums. All costs are borne by the organisation as a welfare for the employees.

Pre-Medical Screening 

In the case of a group health insurance policy, unlike the individual policy, pre-medical screening is not required to determine the existing medical conditions before purchasing.

What may be covered under the group health insurance plan?

Some of the employees expenses that may be borne by the organisation under the group health insurance coverage as long as the employee is a part of the organisation are as follows.

  • Ambulance charges.
  • Hospitalisation expenses.
  • Maternity expenses.
  • Child cover from birth.
  • 141 daycare procedures.
  • Corporate buffer.
  • Covid-19 hospitalisations.
  • Critical illness covers.
  • Psychiatric benefit.
  • Optional terrorism coverage.

Apart from the benefits and covers offered to employees, a group health insurance plan also provides a myriad of benefits to employers.

Tax benefits

A group health insurance policy offers eligibility for tax benefits under the Income Tax Department of India.

Low & Flexible premiums payment

One of the most significant benefits to the organisation/employers in a group health insurance policy is that they have to pay a lesser premium amount and even have the flexibility to choose to pay either monthly, quarterly or annually.

Employee Retention, Loyalty & Motivation

For any organisation, employee retention is one of the most important goals to achieve. A group insurance policy, especially a medical one, acts as a tool to build employee loyalty as they feel cared for by their employer.

This helps relieve employees stress of insurance, motivating them to work harder and thereby resulting in longer retention in many instances.

A group health insurance plan ensures that every organisation enjoys a healthy workforce, as is their responsibility.

Cholamandalam MS offers its corporate solution of Group Health Insurance policy and pushes employees away from financial burdens that may arise due to any unforeseen sickness.

About the author

Tejas Maheta

Hi, I'm Tejas Maheta. A blogger & Internet marketer from India.