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  1. Choosing group insurance cover: Things to keep in mind

Choosing group insurance cover: Things to keep in mind

Less than 20 per cent of the population currently have health insurance cover. There is need to get a cover in view of the rising healthcare costs.

By: | Published: April 16, 2016 3:36 PM
insurance industry A group insurance policy is designed to provide health insurance cover to a group of individuals or entities. Group insurance is generally referred to health insurance cover provided by employers to their employee.

Indian health insurance market is underpentrated. This is because a large section of people are living in poverty, and health insurance does not figure in their check list. Less than 20 per cent of the population currently have health insurance cover. There is need to get a cover in view of the rising healthcare costs. This is where the role of group insurance health policy is so critical and useful.

A group insurance policy is designed to provide health insurance cover to a group of individuals or entities. Group insurance is generally referred to health insurance cover provided by employers to their employee. However, group insurance is not just limited to that, as group insurance cover can also be extended groups such as college students, co-operative societies etc.

Selecting the right kind of group insurance policy for the employee of your company or organisation requires careful thought and consideration. After all, employees are an asset of your company and their well-being is linked to the prosperity of your business and organisation. So, whether you are purchasing a group insurance policy for the first time, or looking for an affordable and alternative plan, the well-being of your workforce should be your top priority.
Here is how you should go ahead with choosing a group insurance policy:

Select a group cover that is widely accepted
An insurance policy that is realistically beneficial to your employee is the one you must opt for. In India, not many people take up individual health plans and rely on the employer for it. Refrain from taking up a plan that is also accepted by select healthcare providers. Insurance policies with low premiums may look advantageous, but will exclude a number of important features.

Select a group plan that covers maternity benefits
As more and more women are joining the workforce in the country, it is only fair to include maternity benefits as part of the group insurance plan. A good maternity plan under group insurance should cover pre- and post-natal expenses, set a sub-limit for both normal and C-section delivery. A good maternity plan goes a long way in building a positive image of your company as a women-friendly organization.

Select a group insurance policy that covers pre-existing diseases
Some group insurance policy covers pre- existing diseases with a payment of extra premium. Inclusion of a policy with varied premium and benefits levels can make the policy flexible. You may also provide a policy that covers a wide range of diseases and ailments. A Critical illness cover will be an added advantage.

Select a group medi-claim policy that provides health cover to immediate family members
Certain group insurance plans also provide health cover to spouse, children and parents. Providing such a plan that extends health benefits to family members of your employee can be critical for employee satisfaction and retention.

Select a group insurance policy that covers general diagnosis
A health insurance policy that covers general diagnosis can play a big role in prevention and management of life-threatening diseases. Simple, inexpensive diagnostics tests can encourage your employees to take up routine health-check that can be beneficial in the long run. Even though, providing group insurance cover to employees is not mandatory, several companies offer one because there is link between health insurance policy and employee satisfaction.

In several cases, group health insurance plans are as good as individual plans. They provide health coverage at a lower premium rate. Health insurance companies have now begun offering group insurance policies that may be customized as per the requirement of the targeted group. The group insurance covers all entities, irrespective of their age, gender, income or socio-economic background as long as they are part of the cluster; the group insurance is applicable to.

The author is a content strategist and likes to contribute tech and finance insights. Views expressed here are personal.

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