Select companies across the country offer group health insurance coverage to employees. The entire premiums towards these policies are paid by the employer. While that makes it one of the most popular option, employees may wonder if the benefit of the group cover can be transferred to an individual policy in case of a job loss/switch?
As per Insurance Regulatory Development Authority of India (IRDAI), an employee can migrate to an individual health insurance policy with the same insurer by completing the required formalities in case of job loss/switch. This also helps the employee in transferring the benefits of any waiting period availed as a member of the group insurance policy.
The acceptance of the conversion, however, is dependent on the insurer.
The insurer has the full right to decide on the terms and conditions of the new scheme along with the premium amount, according to experts.
In case of job loss, the policyholder can reach to the human resource or admin department of the company to know the process in detail.
Generally, to initiate the process, policyholders have to first inform the existing group insurance company.
"The desire to port from the group health insurance plan to the individual health insurance policy shall apply at least 30 days prior to the last employment date,” explains Naval Goel, chief executive officer and founder, PolicyX.com.
"According to the rules, the insured employee must inform insurance company prior to leaving the employer or within 5 days of the date of cessation of group membership, to issue a new retail policy to cover up the sum insured under the policy, on payment of premium in full for the new policy," he added.
The issue of the new retail policy is also dependent on the insurer's underwriting requirements, as prevailing at the time of issuance of the retail policy.
Before conversion, some insurers may also ask for a pre-medical checkup to check the person’s medical condition.
First Published: IST