Reasons to Opt for Group Health Insurance Policy


Offering group health insurance is one of the popular ways to enhance employee engagement in the organization. The policy provides benefits for employees as well as employers. The group health insurance plans are highly customized and hence extends the flexibility as per the need of the employer. For example, health needs of the workforce in the factory is different from that of employees working in a BPO. Still, both the groups need health insurance coverage.  Here are some of the reasons to opt for a group health insurance policy.

Healthy Workforce

The group health insurance, popularly known as employee health insurance, aims at making best possible medical treatment accessible to the employees and their family members. The healthy workforce contributes more towards the organization and their family goals.

Value for Money

The group health insurance is the combined policy for the health benefits of every member of the group. It gives collective bargaining power to the employer to get more cover for its employees at a reasonable cost. On the other hand, the individual health insurance policy is much costlier to the individual. Moreover, the insured has little say towards premium payable and coverage in the individual policy.

Flexible Coverage

Most individual health insurance policy comes with a waiting period of one year before you can claim the benefit. There may be more restrictions towards pre-existing diseases in case of the individual health plan. For certain conditions like smoking habit and heredity diseases, the insurance premium is increased. The company may not honor the insurance claim if such facts are not disclosed properly at the time of taking the plan.

On the other hand, the group insurance policy provides much wider and simpler cover. Barring one or two rare exceptions, every disease, including pre-existing diseases, is covered under the group insurance policy. Such a policy is issued on a perpetual basis with yearly premium. The employee is eligible to get policy benefits from his date of joining and continues to get so till the date of his employment in the company.

Ease of Communication

The corporate client provides collective business to the insurance company. In case of claim, the employee can approach the HR or admin department of the company for easy communication with the insurance company officials. In the case of individual policy, the policyholder sometimes finds difficult to approach to the company.

Motivated Workforce

The medical expense is in a way a major and sudden cash outflow for employees. In critical cases, it may involve the outgo of few months’ salaries for them. It could be very stressful for employees, and may ultimately affect their performance at work. Employee health insurance policy acts as a psychological support to the employee to handle a medical emergency with ease.

Quality Medical Treatment

Many times, the employee has to choose the lower quality medical service due to lack of funds. In many remote areas, the authenticity of the hospital and doctors are also questionable. Such a poor choice may also result in fatal health repercussions. On the other hand, the insurance companies have a tie-up with reputed hospitals across the country. You can expect quality medical treatment from the doctors and staff of the hospital. The group health insurance ensures the payment from the insurance company to the hospital. Hence the employee can get the treatment without financial stress.

Tax Benefit

The amount spent on the group medical insurance is considered as a deductible expense under the income-tax law. It means the tax liability of the employer decreases accordingly. Apart from direct benefits mentioned above, the tax benefit is an another small incentive for the companies to opt for group health insurance policy. You may approach any reputed company like Bajaj Finserv for your group health insurance policy requirement.

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