Group medical insurance policies are specially designed to provide financial coverage to a particular group of people or employees working with an organisation. A group health insurance plan or corporate health insurance policy typically covers critical illnesses, Covid treatment, maternity benefits, daily hospital benefits, accidents, etc.
These plans are usually available against a low premium and may cover the employee and his/her entire family under their umbrella of benefits.
A group medical insurance policy offers financial coverage against diseases and medical emergencies that often put an emotional toll on the employees. Many companies offer these insurance policies to their employees to promote goodwill and, in turn, receive several benefits.
Usually, dependents such as an employee’s spouse, children and even parents can be included under this policy. Following is a look at how a group health insurance policy can benefit both employers and employees working in an organisation.
Employee benefits create a sense of belonging among the employees. A corporate group health insurance covers the expenses of insured employees and their dependents during medical treatment. Thus, it creates a positive image of the company, which helps it to retain employees.
Employers can avail of tax benefits under the Income Tax Act, 1961, by offering group mediclaim to their employees. For example – A company purchases a group health plan from Navi to cover its employees. It will then mention the premium paid for the insurance as business expenses and secure tax benefits accordingly.
Keeps employees motivated
As mentioned earlier, a group medical insurance plan creates a positive image of the company among its employees. This keeps them motivated.
Better health benefits at a low cost
Group health insurance plans provide better benefits at a lower cost.
The plans under this health insurance variant are customisable. For example – an employer can choose a policy that provides maternity benefits, as per his/her immediate requirement.
Pre-existing disease coverage
Compared to individual health plans, group medical insurance provides financial coverage against pre-existing diseases. This benefit is available to employees right from their joining date in a company. It means that there is no waiting period.
Covers a wide range of diseases
There is no limit to the number of diseases covered under this health insurance plan. A group health policy offers financial coverage against diseases, including coronavirus (by some insurers).
Higher maternity coverage
This is one of the special benefits of a group health policy for young employees. Most plans provide coverage for both normal and C-section deliveries. However, with some plans, you will find coverage for newborn infants.
Employees can also avail of tax benefits under Section 80D as per the Income Tax Act of India if they bear a certain part of the premium. You can get tax benefits between Rs. 25,000 – Rs. 50,000 (for senior citizens).
Nonetheless, there are limitations to group health insurance plans. The policies offered are often not comprehensive in nature and may fail to meet the policyholder’s requirements. In such cases, one can opt for a health insurance policy from companies such as Navi.
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Group medical insurance coverage usually entails the following:
Check the exclusions below:
Find the list of best group health plans below:
If the coverage offered under these policies is inadequate, individuals can avail the benefits of the Navi general insurance policy.
The Navi Health Insurance is available in just 90 seconds. There is a range of other benefits offered under Navi’s Group Health Insurance Plan:
There are various slabs of the sum insured as per the benefits covered. The sum insured ranges from Rs. 100 – Rs. 20,00,000 (for group critical illness benefits). This actually varies with the severity of the illness and type of benefits.
Download the Navi App for more information on the plans available! Buying a plan through the app is completely paperless and takes only a few minutes of your precious time.
Group medical insurance is beneficial for employers and employees. The health plan is quite flexible and is customisable based on needs and requirements. Besides financial cover against expenses related to illness or hospitalisation, the group health plan also reduces the tax liability for both employers and employees. In short, group medical insurance creates a sense of belonging among the insured employees of a particular company.
Ans: The premium amount depends on employee strength, employee age, location and the number of dependents of the employees working for the company.
Ans: Hospital costs depend on the type of room used. Costs are higher if you stay in AC rooms. Hence, insurers put a cap on the room rent.
Ans: It means that your insurer will provide a free health check-up facility at least once a year. Generally, this service is available once every 4 years.
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