The employer-employee relationship is one of mutual benefit. While employees work for the benefit of the organisation, the organisation is expected to benefit the employees financially and non-financially. Group insurance plans are part of the financial benefits that ensure the financial safety of employees and their families in case of contingencies. Though not a necessity, these indirect financial benefits give employers an edge in the talent acquisition and retention space.
One important and sought-after group insurance benefit is group mediclaim insurance. Group mediclaim insurance offers multiple benefits to both employees and employers. Here’s how:
- Default Medical Insurance Policy
The day an employee joins an organisation, he/she will be covered under group medical policy by default if the company already has the insurance. All employees of the organisation will get basic coverage simply by being a part of the organisation.
- Pre-existing Disease Coverage
Employee Health Insurance provided by employers covers pre-existing diseases from the first day of an employee joining an organisation. Pre-existing diseases such as diabetes or hypertension are all covered under the policy. There is no waiting period, unlike in individual health insurance policies.
- No Need for a Medical Check-up
Usually, when you go to buy an individual health insurance policy, you have to undergo a “pre-medical screening” or “pre-policy screening.” Medical tests completed in this screening determine your current medical conditions and affect your premium rates. However, in a group medical insurance policy, you don’t have to go through a medical check-up or submit medical reports to get enrolled under this plan.
- Maternity Benefits
Some group health insurance policies offer maternity benefits while others don’t. When covered, employees get cover from day one of joining the office, which means you will get maternity benefits on an immediate basis. Also, the policy has set separate limits for normal, cesarean or ectopic pregnancies. A new-born baby can also be covered under the policy without the standard 90 days of a waiting period.
- No Waiting Period
There is no such thing as a waiting period in this insurance. Illnesses like heart issues, diabetes, etc. are covered from day one. As already mentioned, in an individual health insurance policy you may have to wait for 3-4 years for maternity benefits, but a group health insurance provides you maternity benefit from the first day.
- Cashless Hospitalization
Many group health insurance providers have a set of network hospitals where you can avail of the cashless treatment, once it is approved. That means you don’t have to go through the headache of submitting papers and various other documents after your hospitalisation. Just show the TPA your health insurance card and avail of the cashless facility in any of the hospitals within the insurer’s network – so you can focus on your complete health recovery!
- High Retention Rate
Your workforce determines whether your organisation will make great strides or not. The best way to increase your workforce’s productivity is by improving your employee retention rates. Providing your employees with an employee health plan which not only covers the employees but their family members as well will help to help them get more emotionally attached or engaged with your organisation. This helps to increase retention rates and attract new talent.
- Motivated Employees
Flexible working hours and a good paycheque are not enough to boost your employee’s morale. A group mediclaim policy works as an excellent add-on benefit. As you would have noticed, medical expenses are today touching new heights, but by insuring employees under this insurance, you are taking the burden of treatment expenses off them. This will motivate them to work harder.
- Low Premium Rates
The premium rates of this policy depend upon:
- The number of employees
- Average age
- Type of occupation
- Type of coverage and benefits opted for
- Your (i.e. the employer’s) claim history
However the group mediclaim premium is much lower as it operated on risk pooling phenomenon.
- Premium Payment Convenience
You can choose how you want to pay the premium based on your convenience:
- Tax Benefits
Under section 80D of Income Tax Act 1961, the premium paid for group health insurance provides a tax benefit. But remember only the employer can claim tax benefits. An employee is not entitled to any tax deduction as this insurance is offered by an employer. Employees can get tax benefits only when they have bought individual health insurance or to the extent that they have contributed to a Group Health Insurance.
Compare & Generate Quotes Online
You can generate group health insurance quotes from multiple insurers online using our online calculator. Our calculator will help you generate multiple quotes with benefits customised as per your requirement as available from different insurance companies offering this policy.