Benefits of Group Health Insurance Policy for Employees

Published On 12 Mar 2020 By Gunjan Anand

Benefits of Group Health Insurance Policy for Employees

To offer health and wealth together, employers provide group mediclaim insurance policy for employees. This policy lets employees have an opportunity to obtain basic coverage. Every employee must understand these policies clearly.

Let’s read this article and discuss a few basic things about the group mediclaim insurance policy for employees.

What is a Group Mediclaim Insurance Policy?

Also known as a group health insurance plan, a group mediclaim policy for employees by employers provides several benefits to the policyholder. To offer this policy, some employers deduct a certain amount from the CTC of the employees. The deducted amount is the premium cost of the employer-provided health plan. However, some organisations offer a group policy to their employees for free. Since the plans are purchased in bulk, they are cheaper.

There are many benefits of Group Mediclaim Insurance Policy for employees.  This policy covers the policyholder (employee) as well as his/her family members. This extended support is pretty impressive for the professionals. 

Benefits of the Group Health Insurance Plan

  • Low cost because of larger risk: When it comes to cost, the group health insurance plans are always cheaper than individual or family floater health insurance plans. This is due to the shared premium amount among the employees. 
  • Employees feel valued: With group health insurance cover, the employees feel happy that the organisation values them. In return, they also work hard to deliver their best and make better for all. 
  • A higher number of people increases the plan advantages: As a higher number of people are covered under group health insurance plans, its advantages increase for the policyholders. They get a higher value with added benefits like cover for pre-existing diseases, hospitalisation expenses, etc.
  • Family protection is included: It may depend on policy to policy, but group health insurance plans often cover your family members too. These plans protect the dependents of the employees by offering them financial help in the time of need. If not this, the family members may have to purchase another family floater health insurance plan and pay the premium out of own pocket. 
  • Easy to claim: Instead of running around health insurance companies for a claim, in group health insurance plans all you need to do is connect with your employer with relevant bills. As a large number of employees are insured, the employer ensures that your claim request gets approved. The employees can even enjoy the cashless treatment.

These plans offer coverage for pre-existing illnesses and maternity-related expenses. In some conditions, employees can get their additional members covered under the plan with a bit higher deduction. 

Also read, How to Opt for Suitable Health Policies for Employees?

Which Company Offers Group Health Insurance Plans?

Every organisation, be it private or government, is liable to provide group mediclaim policy to its employees. However, the schemes may differ. Government sectors offer schemes like CGHS, while Private sectors offer plans or health services like ESI. 

Although, policies offered by government firms are much better in terms of specificity and extensibility. The sum insured amount or coverage goes limitless. However, network hospitals and cashless hospitalisation benefits may vary from organisation to organisation, be it a government firm or a private one. 

Should You Buy Personal Health Insurance Even If You Have Group Health Insurance?

Yes. You should. Reason being, despite cost savings and other advantages involved with a group plan, there are times when it is not the best choice. Some of the reasons for this may include-

  • There is a cap on some coverage features.
  • It is a loss for the employee when he/she leaves the organisation.
  • Not beneficial for retired employees.
  • Everyone pays the same amount of premium irrespective of if he/she is fit or not.
  • The high claim amount may escalate renewal premium costs.

We may have discussed a lot about the benefits of group health insurance plans but it would be unfair if we don’t address the problems the employees may face with these plans. 

To understand better, let me take an example. 

You join an organisation but the employer asks you to leave within a few months without any notice. In this case, you may be worried about not only finding a new job but also a new health insurance plan. There you may have to again start from scratch-choose a plan, buy it, serve waiting period and you won’t even be able to enjoy accumulated benefits from your last policy. 

So, the benefits of group health insurance plans end the day you leave the company no matter what the reason is. Also, if you find a plan in another firm, it might not be as beneficial as the one in your current firm. 

Also Read

5 Things to Consider Before Buying Cancer Insurance Plans

Group Health Cover for Friends? Now Possible!

Takeaway

It is recommended to buy a personal health cover even if you are covered under a group health policy. 

To learn more about the group mediclaim policy for employees or buy an individual insurance policy or a floater policy, give a call on our toll-free 1800-1205-698. 

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