Group insurance policies are offered by companies and other organizations as a part of the benefits and perquisites which accompany the employee emoluments package. The group in question can be an employer association, other cultural organizations, or non-formal organizations which offer their employees the benefit of group insurance, including group mediclaim policies.
Types of Group Insurance Policies Available Online
Group insurance policies available online encompass different types of coverage, including life insurance, group health insurance plans incorporating a group mediclaim policy, group travel insurance policy, group personal accident insurance policy, and group retirement savings plans.
Typical groups which can avail of group insurance plans:
- Formal Groups: This refers to all employees of an organization or a public limited company. It includes all employees of industrial companies, manufacturing companies, banks, insurance companies, and organizations like partnerships and sole proprietorships.
- Informal Groups: These include people who come together for a collective interest, such as clubs, religious associations, sports clubs, business clubs, and clubs for young Indians.
Benefits to employees and members from group insurance plans include the following:
- Insurance cover is provided as a benefit, perquisite, or incentive by the employers for the employees. Because many people are being covered under a group insurance plan, it becomes a lower cost option; plus, they are not out-of-pocket. It becomes a costless financial benefit. Tailor-made individual plans are expensive and result in an immediate cash flow for the individual. Some group policies even extend to spouses, family members, and parents.
- Group policies have no prerequisites, such as medical screening and medical tests for the employees and their families, up to a certain limit. Under individual plans, pre-existing and chronic medical conditions do not qualify for claims for up to four years.
- Group plans have an easier claim process. The employee merely has to submit certain documents to claim the benefits under the plan. In the case of group insurance policies, the entire treatment process becomes cashless or based on pre-approvals, especially under the insurance group’s network hospitals.
Benefits to employers who purchase group insurance plans for their employees:
- It becomes a cost-effective solution for the employer, as the cost of the risk cover reduces when covering a group of people. Taking individual covers for the same number of employees becomes an expensive proposition.
- It confers a benefit or an incentive to the employees as group insurance plans are included as a part of the emoluments package. It helps reduce attrition and builds loyalty in the employees.
- Group insurance plans can also be claimed as a tax exemption under the relevant sections of the Indian income tax laws.
- Productivity increases as the employees are motivated to perform better.
Eligibility varies from one insurance company to another, but normally, a group of 50 people is deemed optimal to provide group life insurance. Sometimes online group insurance plans are available for even small groups of 7 people. There is no ceiling on the number of members. Coverage continues as long as a person is part of the organization and ends when they leave the group. There is only one policy to cover all members of the group. Policy customization is possible based on distinctions in the hierarchy, position in the company, salary, marital status, etc. The minimum entry age could vary from 18 to 60 or above, as per the insurance company.
Group Life Insurance Schemes
These are often used by employers as a part of their gratuity payment plan. Life insurance or the death benefit provided is once or twice the salary of the group member. It is typically a low-cost plan with the employer retaining the master policy and individual members getting unit certificates.
Group Health Policy or Group Mediclaim Policy
- The employee and all his immediate family members are covered under the aegis of the group mediclaim policy.
- There is a waiver of pre-existing medical conditions no matter the age or health conditions of the employee or his family members up to a certain amount of coverage.
- Pregnant employees can avail cashless treatments under this plan, provided the delivery takes place 9 months after the inception of the plan.
- Cashless treatment and quick processing of claims are available in the insurance company’s network hospitals.
- Treatments covered normally include sickness or accident hospitalization, ambulance procedures, and daycare procedures under the group insurance policy.
Group Personal Accident Cover
This cover is available to the employee and his family members to cover main events, such as death or disablement. The cover can be limited either locally or globally and could be either off-duty or on-duty. This cover not only takes care of medical expenses and transportation of the remains, but it may also extend to children’s education allowance.
Group travel cover may include both local and global cover. This policy provides coverage during the travel period of employees and their families to take care of contingencies and emergencies that occur during travel.
Employee employer insurance works on providing uniform health cover to each member of the organization. Applying for group insurance schemes offer benefits that include electronic mediclaim cards, insurance reminders, and cashless reimbursement through the app. Centralized single point support is also available for all support queries. All formalities, whether applying for group insurance or claims reimbursement application, can easily be done from the comfort of your home.