What Are Group Insurance Policies? Why Should You Consider That?

Health Insurance

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.

Why Should You Buy Group Medical Insurance?

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.

Corporate Group Health Insurance Benefits for Employers

Employee retention

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. 

Tax relief

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. 

Customisable plans

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.

Also Read – https://navi.com/blog/employer-provided-health-insurance/ 

Group Health Insurance Plans – Benefits for Employees

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.

Tax benefits

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.

Download the Navi App today to access benefits such as paperless claims, 10,000+ network hospitals and more!

Group Medical Insurance Coverage

Group medical insurance coverage usually entails the following:

• You will find all pre-existing diseases covered under this plan.
• This plan covers maternity benefits. Some plans have a waiting period of 9 months, and some do not.
• The newborn baby gets covered right from day 1.
• Some group health insurance plans cover ambulance charges.
• The plans include pre and post-hospitalisation charges.
• Domiciliary expenses get covered under the group policy.
• The plan covers daycare expenses.
• The health plan covers medical practitioner fees.
• This policy also covers room rent, nursing charges, OT charges, diagnostic costs, anaesthesia, oxygen, blood, and others.
• Few policies will also include chemotherapy, radiotherapy, pacemaker cost, etc.

Corporate Group Health Insurance Exclusions

Check the exclusions below:

• Your parents may not get covered under this plan.
• Homoeopathy and Ayurveda treatments do not get covered.
• The group health policy is valid till the cessation of employment.
• Congenital diseases get excluded under this plan.
• The plan does not cover any ailments caused due to drugs or alcohol.

List of Best Group Health Insurance Plans

Find the list of best group health plans below:

• Aditya Birla Group Health Insurance
• Bharti Axa Group Health Insurance
• Cholamandalam MS Group Health Insurance
• Bajaj Allianz Group Health Insurance
• Edelweiss Group Health Insurance
• Future Generali Group Health Insurance
• Reliance Group Health Insurance
• SBI Group Health Insurance

If the coverage offered under these policies is inadequate, individuals can avail the benefits of the Navi general insurance policy.

Also Read – https://navi.com/blog/medical-insurance-for-family/ 

Why Should You Consider Navi?

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: 

• Comprehensive health insurance coverage
• Claim settlement ratio of up to 97%
• Entirely paperless process
• Raise cashless claims in less than 20 minutes
• Subscription-based model

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. 

Final Word

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.

Frequently Asked Questions

Before you go…

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.