Group mediclaim insurance policies or group health insurance plans are the health insurance covers provided to all the eligible members of a group. A group can be an organization, company, or employer. Generally, employers or organizations offer health insurance benefits to their eligible employees or members. And to their dependent family members in order to protect their well-being.
Basically, group health insurance policies are issued by insurance companies on the basis of common risk exposure with respect to the eligible members of the group. As the insurer’s risk spreads across the group among all the members, generally offers insurance plans at a reduced cost.
When companies or organizations purchase group health insurance plans, the cost of the policy is either borne by the employer or by an insured employee, or jointly by both. Whoever pays the cost of the policy, provides coverage to the employee. Or a member of the group against various health contingencies.
There comes the general question – who is the policyholder in the group mediclaim insurance policy?
Well, an insurance contract, involves various parties usually. The insurer (the insurance company, providing the insurance coverage), and the insured (the one who receives the benefits of the policy). And the policyholder (the one who owns the policy). A policy owner or policyholder may be the same as the insured. In a group health insurance contract your employer offered. The policyholder or the policy owner is the organization or the employer. Who offers you the chance to participate in health insurance coverage. Employers or the organization refers to as “master policyholders” in any group mediclaim insurance contract. However, the insured employees eligible to receive the policy benefits refers to as “certificate holders”’.
Group health insurance policies work quite differently from individual health insurance policies. In the case of group health insurance, the master policy is issued to the organization or to the company offering coverage to each and every eligible employee or member registered under the policy for as long as the member or an employee is associated with that organization or the company. That means the policyholder of any group health insurance policy is an employer only with the employee being the beneficiary till the date of his/her employment with the employer.
Written By-
Mayank Sharma
MBA Finance
He is a professional who brings extensive knowledge and expertise to the field of group health insurance. He has dedicated 7years to helping individuals and businesses navigate the complexities of insurance. Having worked closely with numerous clients and insurance providers, he deeply understands the nuances of group health insurance policies. With a reputation for providing insightful and informative content, he leverages his industry experience to educate readers about the importance of group health insurance and its benefits. Through their articles, Mayank Sharma aims to empower individuals and businesses to make informed decisions about their healthcare coverage, ultimately promoting healthier and more secure communities.
