It has been four years since the world grappled with the impact of the Covid-19 global pandemic. However, in addition to this, there have also been rising costs of treatment and growing health risks. Realising this, the government has mandated all professional organisations to provide health insurance to their employees.
However, as anyone who has purchased insurance knows, certain eligibility requirements must be considered when purchasing a policy. Keep reading to find out what group policies are, why it is beneficial to get group health insurance, the eligibility criteria required to get a group policy, and how to buy a group insurance policy.
What is group health insurance?
Group health insurance Policy is an extension of health insurance that offers coverage for a group of individuals in a single plan. Group policies are specially designed policies that build upon individual and family-related policies, adding benefits like customisability, cost-effectiveness, and additional coverages. These policies are usually partially or entirely employer-sponsored and provide coverages for any number of individuals in a single plan regardless of age, gender, or socio-economic status.
What are the benefits of group health insurance for employees and employers?
Many companies often feel that providing group health insurance to their employees is an additional expense or adds unnecessary steps to the functioning of the business. However, companies must realise that there are many direct and indirect benefits for both employees and the organisation.
Here are a few common group health insurance benefits to consider when purchasing insurance for your employees.
1. Coverage for all members in a single policy
Under group insurance policies, all group members, regardless of age, gender, and socio-economic status, are covered under the same policy.
2. Additional coverage options
As a part of group insurance, there are several additional options like coverage for pre-existing diseases, maternity, etc.
3. Cost-effectiveness
Group policies are a lot more cost-effective when compared to purchasing individual policies for each member.
4. No pre-policy checkup
Employees can also benefit from insurers requiring no pre-policy checkup, making the purchase policy much more convenient.
5. High customisability
Group policies are highly customisable, and it is possible to build a policy specific to the group’s needs depending on the insurer.
6. Boosts morale and productivity
Health insurance helps boost morale and foster a safe and productive work environment.
7. Ensures financial security for employees
Group policies ensure financial security for the employees and can reduce their out-of-pocket expenses, thus highly beneficial to them.
8. Coverage for dependents
Depending on the policy opted for, group plans also offer coverage for aging parents, spouses, and children of the employee.
9. Tax benefits for the employer
Providing group employee insurance to your employees also offers tax benefits for the employer as the premium is tax deductible.
10. Better talent attraction and retention
Providing health insurance as a benefit is often regarded as one of the most significant decisions when choosing an organisation. Thus, it acts to attract new talent and retain existing employees.
What are the eligibility criteria for group health insurance?
Organisations and groups must meet certain criteria to qualify for group insurance plans. These criteria are set up by the regulatory authority for insurance in India, the IRDAI; however, there might be certain additional requirements depending on the insurer and the specific policy.
The IRDAI defines a group as a set of individuals having common interests. Groups can be divided into formal and informal. While a professional organisation like corporates falls under formal, groups that form from cultural or social associations, credit card holders, or bank account holders of a specific bank are called informal groups.
A group must typically have at least seven employees to avail of group policies. However, certain insurers offer group plans for less than five members, depending on certain circumstances. Consult with an insurance advisor for more information.
How do you buy a group insurance policy?
You can purchase a group insurance policy for your organisation in several ways. Here are three of the most common ways you can choose to do so:
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Directly from an insurer
Companies can purchase a corporate insurance policy for employees directly from an insurer. This can be beneficial in terms of both customisability and cost and can be possible to negotiate the needs and get a more specialised plan for the group’s requirements.
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Insurance broker
It is also possible for groups to purchase policies by consulting with an insurance broker and help narrow choices and choose the best policy based on the organisation’s requirements.
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Bancassurance
Organisations can also purchase policies using the bancassurance model. Under this model, insurers tie up with banks to provide comprehensive insurance policies to the bank’s customers, leading to a one-stop destination for financial needs.
Conclusion
In conclusion, organisations need to provide health insurance to their employees, and group health insurance is a cost-effective and convenient way for companies to do so for their employees. However, it is essential to note that to be eligible for group health insurance, an organisation needs to have at least 20 employees. However, companies can get microinsurance policies for at least five employees in certain circumstances.
So, ensure your employees’ financial security and medical well-being, all while building a safe and productive working environment, attracting better talent, and retaining valued employees, all with the right group insurance policy.
Also Read: Top 10 Super Top-up Health Insurance Plans
