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Group Health Insurance Benefits For Employees & Employers
Aug 17, 2022

Benefits Of Group Health Insurance For Employees & Employers

Since the beginning of the pandemic, health insurance gained the popularity it always deserved. More and more people are beginning to realize the importance of having a health insurance cover and hence, are creating a robust insurance portfolio. For strong insurance coverage, there are various types of insurance policies that can be purchased. Let’s look at one such type of policy that is generally offered by corporates to their employees—group health insurance plans.

What is a Group Health Insurance Cover?

Group health insurance is a policy that extends similar coverage to a group of individuals. These individuals are associated with an organization or even subscribers to a product or service but are most commonly offered in a corporate setup.  These so-called groups need to be formed as per the guidelines issued by the regulator, the Insurance Regulatory and Development Authority of India (IRDAI). Employers offer such an insurance cover as an added benefit to their employees which may either be completely free or for a nominal premium. You can visit the official website of IRDAI for further details.

Benefits of Group Insurance Plans For Employees

These group insurance plans provide a financial shield and a helping hand for the employees and their family members in times of medical emergencies. Here are some advantages of a group insurance plan for employees:

·        No Waiting Period For Pre-existing Ailments

Health insurance plans generally extend their coverage for pre-existing ailments. But there is a catch to this. The ailment is covered only after a specified waiting period along with loading in premiums. However, when it comes to group insurance plans, they offer coverage for any existing ailment right from day one. Thus, the employee need not worry about health insurance cover for already existing ailments as a group policy takes that into account. *

·        Priority in Claim Settlement

Insurance claims made under a group insurance plan are settled on a priority basis. Thus, the employee need not face many problems in getting their claim settled. In many cases, this insurance claim is also settled on a cashless basis at a network hospital. Since it is mostly handled by either a third-party administrator or directly by the insurance company, the process is smooth and hassle-free. *

·        Maternity Coverage at No Additional Cost

Health insurance plans generally provide coverage for maternity and childbirth expenses as an add-on rider to the health insurance policy. Thus, the policyholder must buy it over and above the base health cover. But for group insurance plans, this feature, in most cases, is bundled in the insurance coverage, thereby ensuring protection for the mother as well as the newborn.  * * Standard T&C Apply

Benefits of Group Insurance Plans For Employers

With changing dynamics of employers with their employees, organizations have started to recognize their employees as indispensable assets. Other than offering competitive remunerations, organizations offer additional perquisites in form of group insurance plans. Here are some of the advantages for them:

·        Tax Benefits For the Organisation

Since group insurance plans are employee benefits that the organization provides, they are classified as business expenditure, and thus, tax benefits are available to the company. You must note that tax benefit is subject to change in tax laws. * Note: Tax benefits are subject to change as per existing laws.

·        Employee-centric Organisations

Organizations that have an employee-first approach can do so more effectively using group insurance plans by providing them additional facilities other than remuneration. *

·        Security for Employees

With a group insurance plan, financial security is available to the employees making them feel financially secure and confident to deal with medical emergencies. * * Standard T&C Apply These are some benefits of group health insurance plans for both the employees and employers.

Wrapping it Up

Even if an employee has a group insurance cover, it is valid only till they are in service. Hence, they must make sure to buy other policies and compare health insurance before buying. It is essential to understand what is health insurance and what it offers and only then can one make the choice of the right insurance cover. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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