{"id":1580,"date":"2021-12-01T18:53:19","date_gmt":"2021-12-01T13:23:19","guid":{"rendered":"https:\/\/www.plancover.com\/insurance\/?p=1580"},"modified":"2021-12-16T14:51:52","modified_gmt":"2021-12-16T09:21:52","slug":"what-is-the-purpose-of-group-health-insurance","status":"publish","type":"post","link":"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/","title":{"rendered":"What is the Purpose of Group Health Insurance?"},"content":{"rendered":"\n<p>A group health insurance policy is a special category of a <em>non-life insurance policy<\/em>. 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.<\/p>\n\n\n\n<p>As per the latest segment-wise business reporting from <strong>GI Council<\/strong>, 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. **<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69fd6a789aba3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69fd6a789aba3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_1_Benefitting_both_employees_and_employers\" title=\"Purpose 1: Benefitting both employees and employers\">Purpose 1: Benefitting both employees and employers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_2_Default_coverage\" title=\"Purpose 2: Default coverage\">Purpose 2: Default coverage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_3_Medical_check-up_is_not_necessary\" title=\"Purpose 3: Medical check-up is not necessary\">Purpose 3: Medical check-up is not necessary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_4_No_need_to_provide_a_medical_report\" title=\"Purpose 4: No need to provide a medical report\">Purpose 4: No need to provide a medical report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_5_Great_value_in_terms_of_expenses\" title=\"Purpose 5: Great value in terms of expenses\">Purpose 5: Great value in terms of expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_6_There_is_no_waiting_period\" title=\"Purpose 6: There is no waiting period\">Purpose 6: There is no waiting period<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_7_Maternity_coverage\" title=\"Purpose 7: Maternity coverage\">Purpose 7: Maternity coverage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_8_Securing_well-being\" title=\"Purpose 8: Securing well-being\">Purpose 8: Securing well-being<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_9_Helping_in_employee_retention\" title=\"Purpose 9: Helping in employee retention&nbsp;\">Purpose 9: Helping in employee retention&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_10_Motivating_the_employees\" title=\"Purpose 10: Motivating the employees\">Purpose 10: Motivating the employees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_11_Providing_tax_benefits\" title=\"Purpose 11: Providing tax benefits&nbsp;\">Purpose 11: Providing tax benefits&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_12_Affordable_premiums\" title=\"Purpose 12: Affordable premiums&nbsp;\">Purpose 12: Affordable premiums&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_13_Easy_payment_options_for_the_premiums\" title=\"Purpose 13: Easy payment options for the premiums\">Purpose 13: Easy payment options for the premiums<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Purpose_14_No_administrative_complication\" title=\"Purpose 14: No administrative complication\">Purpose 14: No administrative complication<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Insurance_policies_may_vary_in_terms_and_conditions\" title=\"Insurance policies may vary in terms and conditions\">Insurance policies may vary in terms and conditions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Ensuring_the_growth_of_the_organization\" title=\"Ensuring the growth of the organization\">Ensuring the growth of the organization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.plancover.com\/insurance\/what-is-the-purpose-of-group-health-insurance\/#Buy_the_policy_from_a_top-rated_broker\" title=\"Buy the policy from a top-rated broker\">Buy the policy from a top-rated broker<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"purpose-1-benefitting-both-employees-and-employers\"><span class=\"ez-toc-section\" id=\"Purpose_1_Benefitting_both_employees_and_employers\"><\/span>Purpose 1: Benefitting both employees and employers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A <em>group health insurance policy<\/em>, 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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-2-default-coverage\"><span class=\"ez-toc-section\" id=\"Purpose_2_Default_coverage\"><\/span>Purpose 2: Default coverage<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The policy covers the health of each of the employees enrolled under the policy. They need to be <em>permanent employees<\/em> of the organisation\/group purchasing the policy. Some insurers also can include <em>contractual employees<\/em> in the same plan. It means when an <strong>individual<\/strong> becomes an employee of a company with an insurance policy, he becomes a <strong>beneficiary<\/strong>. The employer, in this case, automatically offers the facility to its employees.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-3-medical-check-up-is-not-necessary\"><span class=\"ez-toc-section\" id=\"Purpose_3_Medical_check-up_is_not_necessary\"><\/span>Purpose 3: Medical check-up is not necessary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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.&nbsp;The same is applicable for the family members of the employee if they are also covered under the <strong>group insurance program<\/strong>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-4-no-need-to-provide-a-medical-report\"><span class=\"ez-toc-section\" id=\"Purpose_4_No_need_to_provide_a_medical_report\"><\/span>Purpose 4: No need to provide a medical report<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-5-great-value-in-terms-of-expenses\"><span class=\"ez-toc-section\" id=\"Purpose_5_Great_value_in_terms_of_expenses\"><\/span>Purpose 5: Great value in terms of expenses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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 <strong>policy<\/strong>. He or she does not have to think about the costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-6-there-is-no-waiting-period\"><span class=\"ez-toc-section\" id=\"Purpose_6_There_is_no_waiting_period\"><\/span>Purpose 6: There is no waiting period<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p id=\"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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-7-maternity-coverage\"><span class=\"ez-toc-section\" id=\"Purpose_7_Maternity_coverage\"><\/span>Purpose 7: Maternity coverage<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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 <em>covered under the group insurance polic<\/em>y.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-8-securing-well-being\"><span class=\"ez-toc-section\" id=\"Purpose_8_Securing_well-being\"><\/span>Purpose 8: Securing well-being<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-9-helping-in-employee-retention\"><span class=\"ez-toc-section\" id=\"Purpose_9_Helping_in_employee_retention\"><\/span>Purpose 9: Helping in employee retention&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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 <strong>employee retention<\/strong> rate than companies that do not have such <strong><em>facilities<\/em><\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-10-motivating-the-employees\"><span class=\"ez-toc-section\" id=\"Purpose_10_Motivating_the_employees\"><\/span>Purpose 10: Motivating the employees<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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 <a href=\"https:\/\/www.plancover.com\/business\/group-health-insurance\">group health insurance policy<\/a> covers them, they attach themselves more to serving the company. It is also a cost-effective way to motivate the employees of the organization.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-11-providing-tax-benefits\"><span class=\"ez-toc-section\" id=\"Purpose_11_Providing_tax_benefits\"><\/span>Purpose 11: Providing tax benefits&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As an employer, you will be delighted to know that providing your employees with a group health insurance policy helps you <em>save corporate taxes<\/em>. You receive specific tax benefits that help your business to keep more revenue margins. It helps your organization in the long run.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-12-affordable-premiums\"><span class=\"ez-toc-section\" id=\"Purpose_12_Affordable_premiums\"><\/span>Purpose 12: Affordable premiums&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The organization does not have to pay a huge sum of money to pay the premiums for the non-life insurance policy. The <a href=\"https:\/\/www.plancover.com\/business\/group-health-insurance\">group health insurance policy from a renowned service provider generally has very <strong>affordable premiums<\/strong><\/a>. The costs are reasonable according to the usual market norms.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-13-easy-payment-options-for-the-premiums\"><span class=\"ez-toc-section\" id=\"Purpose_13_Easy_payment_options_for_the_premiums\"><\/span>Purpose 13: Easy payment options for the premiums<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"purpose-14-no-administrative-complication\"><span class=\"ez-toc-section\" id=\"Purpose_14_No_administrative_complication\"><\/span>Purpose 14: No administrative complication<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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 <em>features of the policy<\/em>. Everything related to the insurance policy is very transparent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"insurance-policies-may-vary-in-terms-and-conditions\"><span class=\"ez-toc-section\" id=\"Insurance_policies_may_vary_in_terms_and_conditions\"><\/span>Insurance policies may vary in terms and conditions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The group&#8217;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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ensuring-the-growth-of-the-organization\"><span class=\"ez-toc-section\" id=\"Ensuring_the_growth_of_the_organization\"><\/span>Ensuring the growth of the organization<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When your objective is to accelerate the organization&#8217;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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"buy-the-policy-from-a-top-rated-broker\"><span class=\"ez-toc-section\" id=\"Buy_the_policy_from_a_top-rated_broker\"><\/span>Buy the policy from a top-rated broker<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can purchase a good group health insurance policy from a reputable broker, like&nbsp;<strong>PlanCover<\/strong>, certified by <a href=\"https:\/\/www.irdai.gov.in\/\">IRDAI<\/a>. 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 <a href=\"https:\/\/www.linkedin.com\/company\/plancover\/\">PlanCover<\/a>. Ask questions over the phone if you have any doubts.&nbsp;<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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,&#8230;<\/p>\n","protected":false},"author":2,"featured_media":1870,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":"","footnotes":""},"categories":[17],"tags":[],"_links":{"self":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/1580"}],"collection":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/comments?post=1580"}],"version-history":[{"count":6,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/1580\/revisions"}],"predecessor-version":[{"id":1873,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/1580\/revisions\/1873"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media\/1870"}],"wp:attachment":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media?parent=1580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/categories?post=1580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/tags?post=1580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}