Advantages of Group Medical Insurance


The benefits of group medical insurance have been up for debate for a long time now. With it almost becoming a mandatory addition to the list of employee perks, an increasing number of people across industries are enquiring about what it has on offer.

What are the benefits of a group mediclaim policy, and how do you benefit from it? What are its advantages?

While people looking to understand the benefits of group health plans probably already know the benefits of having sizable coverage, we have you covered even if you are new to this world and have little knowledge.

Given that there are two parties involved other than the insurer – employer and employee, we decided to create an article that makes the advantages clear for both.

What is a Group Medical Insurance Policy?

As the name suggests, a group insurance health plan provides coverage to a group of people, usually employees or members of an organization. An individual, usually the employer or the head, purchases these plans. They do so on behalf of the group and require minimum participation to be valid.

These plans are beneficial to both the employers and the employees. The following sections discuss the advantages of group mediclaim plans:

Advantages of Group Mediclaim Policies for Employers

An employer is always worried about employee churn and seeks to provide the best coverage to their workforce across scenarios. When it comes to employees’ health concerns, employers offer group mediclaim plans to act as a financial cushion during emergencies. Here is how these plans are beneficial for the employer.

  • Helps in Employee Retention 

The gradual shift of organizations from being company-centric to being employee-centric means that there have been multiple changes in the way the former operates. Having a group mediclaim plan contributes to the increased tryst of achieving higher employee retention, because it helps keep them motivated. In addition, the sense of security allows them to stay connected for longer.

  • Wider Coverage

One of the most significant benefits of group plans is that they offer broader coverage at the same cover for the employer, allowing them to include more people in their workforce at no additional cost.

  • Tax Benefits

Group health plans also help employers in reducing the company’s tax liability by offering a plethora of tax benefits.

  • Easy Premium Payment

The insurer provides a flexible premium payment option to the employer, allowing them to choose a quarterly or annual mode of payment as per their convenience.

Advantages of Group Medical Insurance for Employees

As for employees, having a health cover is as important as being a part of a group term life insurance plan. Now that we know about group medical vital features and benefits, let us explore its coverage.

  • Free or Subsidized Coverage

In most cases, employers are happy to offer group health plans to their employees free of cost. Even when employees are required to pay the premium, they do so at a subsidized price.

  • No Waiting Period

A waiting period is a time stretch between purchasing a policy and its activation. The idea is especially prevalent for individual health plans, where insured individuals must wait for pre-defined days before being allowed to raise a claim against the policy. With group health plans, the employees do not have the waiting period clause attached to the policy, allowing them coverage from day one.

  • Cashless Treatment

Insurers partner with top hospital chains for a clutter-free claim settling process for the beneficiaries of a group health plan. It allows the employees to enjoy cashless treatment for a wide range of issues.

  • Accidental Hospitalization Coverage

Suppose your employee (i.e., the policyholder) or their dependents meet with an accident. In that case, the policy will compensate for their pre- and post-hospitalization expenses. Coverage includes ambulance charges, daycare procedures, diagnosis, hospital bed charges, and more.

You can also opt for group personal accident insurance to protect some employees in the event of untoward incidents during work hours.

  • Hospitalization Coverage

Under the group medical insurance policy, the insurance provider will bear the pre-and post-hospitalization medical expenses. The benefactor will be covered for up to 30 and 60 days and covers ages 19 to 80 years.

  • OPD Coverage

Group health plans also cover outpatient treatment. It means that if the employee gets treatment in a hospital or other facility without being hospitalized, the insurer is happy to cover the costs subject to the terms and conditions of the policy.

  • Critical Illness Coverage

Nowadays, several cases of acute illnesses are prevalent in society. Therefore, medical insurance is vital for private employees to overcome the same repercussions concerning medical expenses and related monetary requirements.

The group mediclaim policies cover critical illness reimbursement. Employees or dependents can raise a claim if diagnosed with acute illnesses.

  • Maternity and Newborn Coverage

Maternity and related expenses are substantial medical expenses for several working professionals. These plans offer employees a wide range of maternity and newborn coverage.

Under this coverage, the employees and their spouses will benefit from child delivery expenses. This cover will include room charges, delivery charges, examination fees, and other related costs.

The maternity and newborn medical expenses claim percentage may vary from one insurance policy provider to another. Apart from the pregnancy and delivery-related expenses, the policy also covers medical expenses’ reimbursement for infertility treatment or abortions (medically necessary pregnancy terminations).

Key Takeaways

We do not think we need to reiterate your employees’ need for suitable health coverage. In such uncertain times, having group health insurance is one of the most effective ways to provide coverage to your employees against medical emergencies.

While these plans may not be adequate for every individual, they at least offer enough and come with several additional riders to make it meaningful for most employees covered.

If you are looking for a suitable group mediclaim plan for your employees, you can have a look at Plum Insurance. We offer policies specially designed for your workforce’s needs and ensure optimum coverage at the most reasonable rates.

Click here to check out Plum Insurance’s group mediclaim plans.

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