The group health insurance is the health insurance plan taken for the benefit of the specific group. In India and worldwide, it is most commonly availed by the employer for their employees. It usually covers every employee and his or her dependent family. The group health insurance is no more perk but an important HR tool that offers better Employee Value Proposition(EVP). It has proven a beneficial tool for employees as well as employers.
The group health insurance covers every employee of the organization from the day of his joining to the company. The term of the insurance policy is on a continuous basis, applicable to every employee of the company. The employee can avail the benefit of health insurance without any restriction of the waiting period or exclusions. The maternity benefits are also covered with liberal terms and conditions as compared to individual health policy. In most cases, the infant is also covered from the date of his or her birth. The expenses related to the treatment like diagnostic tests are also covered in the policy.
The ‘employee health insurance scheme’ gives motivation to the employees as their health is taken care of without any additional expenses from their side. Due to the rising cost of health care, even if 3-4 days’ hospitalization is enough to wipe off the monthly salary of the average employee. In many cases, employees do not have enough financial resources to avail quality health services. For such unprivileged employees, health insurance is the boon for them, and they remain loyal to the company. In the long run, it helps to retain quality employees with your company. Motivated and loyal employees enhance the productivity of the company as a whole.
Since a group medical insurance policy is a bulk business for the insurance company, it gives a good discount to the employer as the cost of doing business is much less than issuing several individual health insurance policies. In other words, the employees get better sum assured in lesser premium payment.
Better Access to Hospitals and Doctors
In the case of the individual medical insurance policy, the person has limited access and contacts to the doctors and hospitals. In case of medical emergency or illness, the family is already in the stress, and cannot handle insurance related issues effectively. However, in case of employee group medical insurance policy, the HR or admin department of the company remains in regular touch with the representative of the insurance company, who can coordinate faster with the doctors and hospitals to take key decisions like cashless facility, approval of expenses or other similar insurance related matters.
The premium paid for the group health insurance policy is considered as a deductible expense as per prevailing tax laws. Hence, the effective cost of a health insurance policy as much lower than the actual premium payment to the insurance company.
In a nutshell, the group health insurance policy is the mutual beneficial for the employees and employers both. Nowadays, reputed insurance company Bajaj Finserv also offers an online group medical insurance policy, that can save time and efforts both. Moreover, it scores better regarding premium payment and claims benefits both, when you compare other insurance plans. You can consider buying it online from Bajaj Finserv website.