Health is wealth, as the saying goes. Yet, given the rate at which medical costs are growing and the prevalence of chronic illnesses, even a minor illness has the potential to deplete our savings. There is a financial product called health insurance to deal with this challenge. Unfortunately, the number of individuals or families having this coverage is relatively low.
However, a survey conducted a few years ago revealed that barely 10.2% of people in rural areas and just 9.8% of persons in urban areas have health insurance of any kind.
The need for insurance became more alarming when the COVID-19 pandemic hit our country, and many people lost their lives because they were financially unable to deal with their medical expenses as they did not have any medical coverage.
Considering all these facts, the Insurance Regulatory and Development Authority of India (IRDAI) released a circular on April 1st, 2020, making group medical insurance a standard operating procedure to resume work.
Group medical coverage is offered to employees by large or mid-sized organisations, irrespective of their job profile, age, and gender. The employer usually pays the premium, and the employee doesn’t have to pay anything to obtain coverage.
1. Zero Waiting Period
Even if you recently purchased medical insurance, it usually does not provide instant financial assistance if you get admitted to the hospital due to a pre-existing ailment. However, this is not the case for group health insurance. These plans offer a zero waiting time. For example, suppose you have diabetes and develop a severe disease shortly after joining the organisation. You can get immediate treatment without paying a single rupee, subject to the maximum coverage level.
2. Simplified Claims
Whether it is a reimbursement or a cashless claim, under a group accidental insurance policy for employees, the claims are handled much more efficiently because there are not only third-party administrators engaged, but you can also seek assistance from your employer or HR manager if necessary.
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3. Retention
Salaries and job security are the most common reasons individuals switch jobs. They are concerned about whether their salary is sufficient to cover any medical emergencies in their household. However, as an employer, if you alleviate this burden for your employees by providing comprehensive medical coverage, you have a decent chance of retaining your top talent.
4. No Medical Check-up
Most insurers need you to pass a medical screening test before covering you under health insurance. If you have a pre-existing ailment, such as hyperthyroidism or cardiac problems, your coverage application will be denied, or the premium will be unexpectedly high. But with group coverage, you are covered right from the day you start working, with no need for any medical screenings or paying extra premiums.
5. Higher Coverage
Group personal accident insurance typically offers a higher sum insured, ranging from INR 3 lakh to INR 5 lakh per employee. This ensures that the employees and their dependents are adequately covered for most of the medical expenses, including hospitalisation, pre- and post-hospitalisation, maternity coverage, and newborn care.
Group medical coverage is not only mandatory in India but also plays a major role in employee retention. It offers adequate coverage to you as an employee or your dear ones without spending a rupee on a premium. Also, if an emergency strikes, unlike individual plans where you have to wait for a certain duration to redeem insurance coverage, group coverage lets you get treated free of cost.