Group Health Insurance

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How is a GMC policy renewed?

A group mediclaim policy is a health insurance policy which covers a group of individuals under a single plan. A master policy is issued which contains the name of the insured members and their sum insured. Contrary to individual health insurance plans which can be taken for a consecutive period of 2 or 3 years, a group health insurance plan is available on an annual basis only. Once the year comes to an end, the policy is required to be renewed by the group to continue the coverage. 

Renewal of group health insurance policies are done with utmost care. There might be some changes in the composition of the group or the coverage requirements. Moreover, since the age of all covered members would increase by a year, the premiums would increase. Both of these and other relevant aspects are reviewed at the time of renewal by the insurance company. 

At the time of renewal of a group mediclaim policy, the group would have to inform the insurance company of the following aspects –

  • Request for renewal – firstly, the group would have to request the insurance company to renew the policy for ensuring continuous coverage for its members.
  • Addition or deletion of members – if new members are added to the group, they need to be included in the coverage. Similarly, if any existing member is no longer a part of the group, his coverage should terminate. The group would, therefore, have to inform the insurance company about the entry or exit of members.
  • Increase in sum insured if required – if the group wants to increase the coverage of the policy, it can make a request to the insurance company for the same
  • Adding add-ons – riders are available with group mediclaim policies. If the group wants to opt for the available riders, the intention should be communicated to the insurance company.

Once the group informs the insurance company of the above-mentioned aspects, the insurer makes any required changes in the existing plan. The insurance company also checks the following –

  • The total claims made in the year. If the claims are low, the company would usually offer a premium discount on renewal premiums
  • Whether the increase in sum insured can be allowed to the group based on the company’s underwriting principles
  • The additional premium payable for the chosen riders and for enhanced sum insured (if any)
  • The new list of members to be covered under the policy

Once these aspects are checked, the insurance company prepares a fresh list of members with their latest age. The coverage is also decided by the company for each member. Thereafter the premium is calculated considering the members covered, their age, the sum insured, riders selected and discounts, if any.

The insurance company would then offer the revised group mediclaim policy to the group. If the group approves of the policy, the premiums would have to be paid. Once the premium is paid, the policy would be renewed.

A group health insurance plan provides group members with good coverage at affordable premium rates. The policy should, therefore, be renewed in time for continuous coverage. 

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