Employee retention and satisfaction are not entirely dependent on the salary anymore. Other aspects of compensation provide the employee with a sense of security and trust in the company. Medical insurance is one such benefit.
There has been increased awareness of the importance of health insurance in recent times due to the pandemic. With medical emergencies, employees are more concerned about what is covered under their group health insurance policy.
Generally, group health insurance policies are benefits extended by employers to their employees. However, in some cases, the premium is deducted from the employee’s salary. Corporate health insurance provides extended support to the employees by offering coverage to hospitalisation after an accident, COVID-19 cover, critical illness cover and many other such benefits.
Employees can benefit from group medical cover provided by the employers and avail of the following benefits:
No pre-medical screening:
When you apply for health insurance for yourself and your family, the insurer generally asks for pre-medical tests for analysing the premium and waiting period before issuing your health insurance policy. But when it comes to Group Medical Cover (GMC), it is not required as the employer takes policies in bulk for all the employees, and the policy becomes valid without any declarations.
No waiting period: Any person with pre-existing medical conditions like diabetes or those who have had surgeries in the past will have a waiting period before availing of the insurance benefits. When it comes to group medical cover, this limitation does not exist. When the employer provides the insurance, the employees are eligible for coverage from the first day of the policy.
Family protection included: Though it may depend on the insurance that your employer has chosen, often group health insurance plans cover your immediate family members as well. Typically, a family floater policy to cover oneself, one’s spouse, two children and parents will be expensive. But if the employees have a group cover that can be extended to family cover, they need to worry only about the additional coverage and expense when required.
Simplified claims process: Generally, we have to follow up with the insurance provider for the claims. But when it comes to corporate health insurance, the employer is the primary contact as they have opted for the cover and plan. They will be responsible for the communications. Hence, the process becomes simpler for the employees.
No/low premium: If your employer includes health insurance as a part of the employee benefit, the company pays the premium. It means you can avail of all the benefits of health insurance and get financial protection for your medical expense without paying the premium. Whether the health insurance premium is included in the employee’s annual benefits or is deducted from the salary, the premium for group covers is generally a lot lower than individual health insurance.
Flexible policies: Flexibility in customising policies is an added benefit. Employees can choose from add-on covers offered by the group insurance provider for additional benefits. For instance, a few insurance providers offer maternity benefits with a newborn baby cover, which can be chosen as an add-on to cover for child delivery expenses and any treatments related to infertility.
Similarly, critical illness is on the rise these days. Some group medical plans cover the treatments in case you or any of your dependents are diagnosed with any critical illnesses.
Individual and family health plans are still important to additionally cover for what is generally not covered in group health insurance, like a cap on some coverage features. Don’t forget to check the policy details of your group cover thoroughly so that you are clear on what additional covers are needed when choosing your individual and family health insurance. A combination of the two is ideal for covering you and your family in every situation.
The author, Vivek Chaturvedi, is Chief Marketing Officer at Digit Insurance. The views expressed are personal
First Published: IST