What are the Benefits of Group Medical Insurance Policy for Employees?

3 min read

What are the Benefits of Group Medical Insurance Policy for Employees?

Group health insurance policies cover a certain number of people together under a large health insurance umbrella. A group plan is commonly taken by an employer for all their employees. There are many benefits of group health insurance. Read on to know more.

Understanding group health insurance

Let us begin by understanding how an employee health insurance policy works. All the employees of a certain organisation are covered under a single health insurance plan. Each employee is given a fixed amount of cover which usually extends to him as well as his immediate family members. The premium, which is considerably lower than an individual health plan, is deducted from the employee’s salary. Every single employee is provided with the group cover and it continues till the time he is on the company’s rolls.

Benefits of group medical insurance for employees

Now let us take a look at the many advantages of group medical insurance for employees :

Default health cover

This is the biggest advantage an employee gets when he starts working in a firm that of a group health cover. He automatically gets a health cover not just for himself, but in most cases, for his entire family as well. This keeps him safe and brings quality healthcare within his reach.

Immediate cover

There is no waiting period associated with the group health insurance plans. An employee can make a claim as soon as he gets enrolled under the group health insurance plan. This is a huge advantage as most of the individual health plans have waiting periods for the various illnesses.

No health check

An employee is not asked to undergo any health check before getting the group cover. This is another huge benefit of getting an employee health insurance policy. Many a time people can’t buy a health insurance plan simply because they have certain pre-existing medical conditions. But with a group plan, they get the required cover and can stay under the health insurance umbrella at all times.

Maternity cover

Very few individual health insurance plans have provisions for maternity expenses. Even the ones that do, have significant waiting periods associated with the cover. But the maternity charges are covered under a group plan from day one. This is an unpatrolled advantage of the group health insurance plans.

Motivation for the employees

A good health insurance cover is one of the biggest necessities these days. With healthcare becoming more and more expensive with every passing day, it is rather difficult to afford the best healthcare facilities without insurance. So when an employee has the insurance cushion with him, he becomes more motivated to work for the employer who provides the cushion. There is more output at work and it points towards the betterment of the employer as well as the employee.

Beneficial for the employer

Since the group health cover goes away if an employee leaves the job, there is a higher scope for employee retention with the employee health insurance policies. This is beneficial for the employers as they get to retain their employees for a longer time.

Inexpensive cover

A group health plan is quite inexpensive as compared to an individual plan. This is because the insurance provider sells the plan in bulk and offers a hefty discount to the employer. The cost of the plan, as well as the regular premiums, therefore become lower and the employees enjoy a high health cover at a low rate.

In a nutshell

So as you can clearly see from the points mentioned above, there are many advantages of the group health insurance plans. These plans are designed by keeping the theory of balance in mind. The insurance providers know that while some of the group members will make claims on the plan, some won’t. This balances out the risks and even reduces the costs considerably. The plans therefore are highly beneficial for everyone – the employees, the employers as well as the insurance providers. However, the cover is limited and valid only till the time a person works at the organisation and he loses it as soon as he leaves the job. It is therefore advisable for everyone to maintain an individual health plan along with the group health cover.

Choose wisely!

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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