When does a GMC policy expire?
A group mediclaim (GMC) policy is usually valid for one year. After the year is over, the policy needs to be renewed to ensure that the coverage continues. If the policy is not renewed before the expiry date, its coverage would expire once the term i.e. the specified duration of one year is over.
For instance, if a group health insurance plan is bought on 1st January 2019, the coverage would run till midnight of 31st December 2019. If the policy is renewed before this date, the coverage under the policy would continue for another year i.e. till 31st December 2020. However, if renewal is not done on or before 31st December, 2019, the policy would expire with effect from 1st January 2020. Once the policy expires, the insured members lose all the benefits of their affordable group health insurance coverage.
There is no maximum renewal age generally, under health insurance plans. If a policy is always renewed on time, the plan would continue to provide coverage to the individual for his entire lifetime. The same holds true for group health insurance plans too. These plans have no limiting coverage duration. The policy is offered for one year because the composition of the group is expected to change frequently as employees join or depart, hence the policy needs to be updated year on year. So, even if members of the group age in years, the group health insurance policy would continue to offer coverage provided it is renewed on time and the individual remains a member of the group.
Since the group health insurance plan covers multiple members, the policy does not expire when any claim for one member has been paid in full. If any one or more members make a claim for the full sum insured allotted to them, the group health insurance policy would pay the required claims. Thereafter, coverage for the member who has exhausted his coverage level would stop but coverage for the other members of the group would continue. When the policy is renewed the following year, the member (whose coverage was stopped due to having used up the coverage level) would again get coverage in the renewed policy.
For example, suppose in a group health insurance policy for 100 members, one member had coverage of INR 50,000. The member suffered a medical emergency and made a claim of INR 50,000. The group health insurance policy would pay the member’s claim of INR 50,000 and the coverage for that member would stop for the remaining duration of the policy. However, other members can make claims if their sum insured has not been exhausted. Thereafter, when the policy is renewed in the next year, the member whose coverage was exhausted would again be able to avail a fresh coverage in the renewed policy.
So, a group health insurance policy does not expire unless it is not renewed on time. Regular renewals are, therefore, essential for uninterrupted coverage. A group health insurance plan provides a good scope of coverage at affordable rates and so, renewals should not be avoided. Get more information about the wide range of features and benefits of SecureNow’s group health policies at https://securenow.in/group-insurance/group-health-insurance
SecureNow provides a range of outstanding group health benefits from different insurers at significantly better prices than what you can get in the market. The process of getting insurance quotes online is highly simplified and can be completed within seconds. Be sure to click on the link above to learn more!