Group insurance cover is a comprehensive health policy, mostly done by companies for their employees. These policies provide health insurance covers for employees and also their spouses, children and at times parents.
According to experts, for an employer, a group health insurance policy is comparatively easier to get since they procure it in bulk for their employees. “Group health benefits for a large number of people also end up in having many things covered simultaneously. It is beneficial for employers to get their employees covered as it creates a protective environment. The employees will have one less thing to worry about and will start to connect well with their workplace/employers,” said Sanchit Malik, co-founder and chief executive officer (CEO), Pazcare, an insuretech firm.
There are key differences between retail health and group health covers that individuals should know about.
First, in the case of retail health cover, the insurance contract is signed with the policyholder, while in the case of group health cover, the employer owns the insurance contract with the insurer. The employer then issues certificates to the employees of the company.
Second, the insured can revoke the retail health cover. On the other hand, the employer can rescind the group health policy for their employees.
Third, buying a retail health policy comes with a waiting period for pre-existing diseases, while group health policy covers don’t have this restriction.
Fourth, all retail health polices get costlier with increasing age. While in the case of group cover, policies don’t get more expensive with the employee’s age.
Fifth, you need to renew your retail health policy every year to make it remain active. In contrast, employment tenure does not affect the insurance term coverage for employees. You are covered as long as you are part of the company.
Additionally, group health policy provides significant benefits to employees. This coverage protects the policyholder (employee) as well as family members. Here are some key benefits.
Extensive coverage: Certain group health insurance policies may cover boarding costs in addition to anaesthetists, surgeons and consultation fees. “Among other expenses covered are those for oxygen, anaesthesia and diagnostic materials, as well as dialysis and X-rays. The policy also includes coverage for domiciliary hospitalization. Besides, maternity-related expenses are covered,” said Mayank Kale, CEO and founder, Loop Health, a group health insurance agency.
Regular health check-ups: Employers can conduct regular health check-ups for their employees. The employees can also start their treatment or medication whenever required.
“Regular check-ups will also help employees make changes in their daily routine and know what is working out for them and what is not. And since the employers will be insuring the whole company, the group health insurance policy will be cost-effective and economical for everybody,” said Malik.
Readily available: The new recruits could be easily insured because of the existing group health policies, simultaneously benefiting the employer and employee. Not only that, additional policies can be added or deleted according to the employee’s needs. One can also modify plans to suit the different needs of every individual and their family members.
Hassle-free claim process: The claims are quickly settled without any intermediaries as the employee only needs to contact their employer with the necessary bills and documents. The time saved from these formalities could be crucial at many points, making a comprehensive group health insurance a better option than having a personal insurance cover. The insurance policy will also cover ambulance costs, more minor surgeries like eye surgery, dental cover, etc.
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