Any kind of employee benefit is welcomed by the office staff. A group medical insurance policy is also one such benefit offered by employers to employees. Note that all employers might not offer such insurance. However, it is expected of top companies to do so.
In today’s age where companies are looking at different ways to hire and retain their employees, offering a group medical insurance policy is something that the employees perceive as a productive perquisite.
Is such kind of health policy in India a big deal? Read on to know the answer.
Medical Insurance Plans:
There are different types of medical insurance plans that you can choose from the Indian insurance market. Here’s a handy list:
- Individual Policy (different Add-on covers can be added for enhanced coverage)
- Critical Illness Policy (focuses on major illnesses and offers one-time lump sum benefit)
- Family Floater Policy (group plan at a family level)
- Mediclaim Policy (basic plan for hospitalization)
- Group Plan (any group of people as per terms and conditions)
- Employer-offered group plan (Employee Medical Insurance)
You can have a portfolio of suitable medical insurance plans for optimal coverage.
Employee Medical Insurance:
Probably the biggest advantage of this plan for the employee is that it is free. The employee doesn’t have to pay an insurance premium for it. In most cases, the employer pays the health insurance premium for such a type of health policy in India on the employee’s behalf.
This is a generic policy. All beneficiaries under this plan have the same cover; all employees fall under one cover. Some policies also offer the option of including parents and spouse in the policy. This is seen as a major benefit by the employees, especially during current times where medical costs are always on the rise.
Usually, such a policy lasts for a year. Beyond which the employer can take a call regarding continuing with the same insurer or switching to another. The employer can even decide to change the cover. Moreover, it is something that is not in your control. The employer picks the insurance company, chooses the cover, and pays the premium.
Also, such a cover is only applicable till the time you are associated with the company. The cover will not be active if you leave the company. This is where such a cover isn’t entirely reliable.
Is this a Big Deal?
It won’t be wise to consider an Employee Medical Policy as the only health insurance policy to fall back on. It can be viewed as an added advantage. An extra. Over and above your ‘personal’ health plan. Considering this premise, a group plan is certainly not a big deal. However, it is a benefit that can help you to keep your health cover unused.
For example, instead of raising a maternity claim from a Family Floater plan, one can raise it from an Employee Medical Policy (provided it is being offered and you are eligible for it). This way, your cover can remain intact and you can raise a claim from the group policy, which you haven’t paid for.
So, if you come across a situation where you are looking for a job change and there is very little that can be used to distinguish between two job offers, you can go with the company that is offering Employee Medical Insurance from a reputed insurance company.
Therefore, it will be safe to say that the group insurance offered by your employer is not a big deal. At the same time, one shouldn’t miss out on it as it has its share of benefits.
Also, read: Health Insurance Premium Calculator
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