A group health insurance policy is a special category of a non-life insurance policy. It covers the employees of a company or a specific team of employees. (In July 2021, there was a recorded growth of 19.5% YoY in the segment of non-life insurance policy premiums)*. Many service providers in the market sell group health insurance policies of different types. In several cases, they sell the policies via IRDAI-certified brokers.
As per the latest segment-wise business reporting from GI Council, the group health insurance business has grown by a whopping 32% of the prior year. In fact, the group health insurance market is now bigger than the individual health insurance market in India. **
Purpose 1: Benefitting both employees and employers
A group health insurance policy, is beneficial for both the employees and employers from a practical viewpoint. It creates more value for them. There are generally some distinct purposes of a group health insurance policy. Let us discuss them from the perspective of employees. After that, the blog will discuss the purposes the policy serves for employers.
Purpose 2: Default coverage
The policy covers the health of each of the employees enrolled under the policy. They need to be permanent employees of the organisation/group purchasing the policy. Some insurers also can include contractual employees in the same plan. It means when an individual becomes an employee of a company with an insurance policy, he becomes a beneficiary. The employer, in this case, automatically offers the facility to its employees.
Purpose 3: Medical check-up is not necessary
Medical check-up of each employee falling under the insurance policy is not mandatory. The concerned person does not have to undergo any check-up process to register the name. The same is applicable for the family members of the employee if they are also covered under the group insurance program.
Purpose 4: No need to provide a medical report
There is also no requirement to submit any medical reports to the insurance company. The employees can do away without it. There is no such rule that asks for the medical report of any worker under the group medical insurance.
Purpose 5: Great value in terms of expenses
An employee of an organization would have otherwise not been able to buy medical insurance in some cases due to its annual costs. But, when there is a provision of availing it from the organization where the person works, the individual gets excellent value from the policy. He or she does not have to think about the costs.
Purpose 6: There is no waiting period
The employees do not have to worry about the waiting period of a standard group health insurance policy. There is no such provision attached to the working of the policy. The coverage begins from DAY 1 of the insurance policy. The employee does not have to bother anything about it. The absence of a waiting period makes the policy more advantageous. It creates more value for the employee. There are no hassles in availing it. The process is usually simple.
Purpose 7: Maternity coverage
There are several group insurance health policies that efficiently provide maternity coverage. So, it is especially beneficial not only for the female employees but also for the spouses of the employees, of the organization. The policy, in most cases, gives coverage from DAY 1. As soon as an employee joins the organization, she begins to benefit from the policy. Even the spouses of the employees can get covered from the day they are covered under the group insurance policy.
Purpose 8: Securing well-being
If an employee is serious about cost-effectively securing individual well-being, and when a company wants it, too, a group health insurance policy is the way to go. The insurance policy provides the utility that the employees search for.
Purpose 9: Helping in employee retention
When you are a senior HR of a reputable small business and want to retain employees, it is important to provide them with group health insurance. Employee retention is one of the surest ways to grow a company. Companies that provide group health insurance policies have a higher employee retention rate than companies that do not have such facilities.
Purpose 10: Motivating the employees
The task of an HR manager or an account executive handling HR strategies is to motivate the employees to give their best. When the employees know that a group health insurance policy covers them, they attach themselves more to serving the company. It is also a cost-effective way to motivate the employees of the organization.
Purpose 11: Providing tax benefits
As an employer, you will be delighted to know that providing your employees with a group health insurance policy helps you save corporate taxes. You receive specific tax benefits that help your business to keep more revenue margins. It helps your organization in the long run.
Purpose 12: Affordable premiums
The organization does not have to pay a huge sum of money to pay the premiums for the non-life insurance policy. The group health insurance policy from a renowned service provider generally has very affordable premiums. The costs are reasonable according to the usual market norms.
Purpose 13: Easy payment options for the premiums
As an HR strategist or administrative executive heading the welfare of employees of a growing organization, you will be happy to know that the payment options for the premiums are very simple. It is quite easy to handle the whole process.
Purpose 14: No administrative complication
A group, health insurance policy does not have any type of administrative complication at any stage. Its guidelines are simple to understand. You do not have to waste time interpreting the features of the policy. Everything related to the insurance policy is very transparent.
Insurance policies may vary in terms and conditions
The group’s health insurance policies may vary in conditions, depending on the service provider you purchase. There can be different terms for various policies. It is essential to thoroughly read the terms and conditions before deciding to buy the insurance policy.
Ensuring the growth of the organization
When your objective is to accelerate the organization’s growth, buying a group health insurance policy from a well-known service provider in the competitive market is important. It should have goodwill in the competitive market. You can be more confident about meeting the business goals.
Buy the policy from a top-rated broker
You can purchase a good group health insurance policy from a reputable broker, like PlanCover, certified by IRDAI. The processing is fast and efficient. There are ample benefits (as discussed in this blog) for both the employees and employers. Get in touch with an experienced executive of PlanCover. Ask questions over the phone if you have any doubts.