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Things To Consider Before Buying Group Health Insurance

Posted on 10 August, 2023
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The most important resource for the growth of a company is its workforce and so it is important that the employers are mindful towards the health and well-being of their workers/ employees. The most fundamental thing a business can do to support employees' health and assure their financial security in the face of uncertainty is to provide health insurance. A group Health insurance comes as a life saver here as it not only provides financial security to the employees but also earns points for the employers which in turn increases loyalty as well as retention. However, one should keep in mind a few points to ensure the effectiveness of the insurance cover. This article explains 8 crucial factors to take into account when purchasing group health insurance for your employees and their dependents.

There are a number of things to take into account when buying a group health insurance policy if you are the owner of a business. But first, let us explain you why you should give group health insurance a serious thought.

Tips To Consider Before Buying Group Health Insurance

Reasons to Purchase Group Health Insurance

There are various justifications for getting your staff group health insurance. Here are a few:

  • Group policies, when compared to retail policies, have a great advantage as under the former one can waive off all kinds of waiting periods – like pre-existing waiting period, first year diseases period, and 30 days waiting period.

  • As group policies are tailor-made, one can opt for covers like Maternity, Ambulance charges, room rent etc. as per the limit desired.

  • The law of large numbers prevailing under the group health insurance helps one to get affordable premium applicable for the coverages.

  • Employees and their dependents are covered from day 1 under the policy without having to undergo any health checkup which is otherwise a mandatory requirement under the retail plans for age above 45 years.

  • In case employees purchase policy for their dependents on a group platform, not only do they get affordable rates but also are eligible for tax benefit under 80D. Lastly and most importantly, employers who have a group health insurance in place always tends to have an edge over the employers who are not yet conscious enough towards this need of their employees.

Your group health insurance must be employee-centric in order to guarantee that it is advantageous to the employees. When purchasing group health insurance for your employees, keep the following in mind:

  • 1. Knowledge about the terms and conditions

    The coverage of the policy is determined by the conditions basis which a claim can or cannot be made. Hence it is essential for us to understand both the exclusions and the coverage provided by the health insurance policy (inclusions) before finalising the health insurance. Being unaware of the coverage and the conditions can lead to an increase in the out-of-pocket expenses and repudiation of claims.

  • 2. Tailor made cover

    Each employee is provided with terms and conditions under the Group Health Insurance by the insurer. As the product is known to be tailor made one can pick and choose as per the requirements of the staff. For instance, the policy should include personal accident coverage if all of your staff are unmarried and travel frequently. Similar to this, you should think about offering maternity benefits if the majority of your employees are married and the average of employees is less than 35 years. Pre-existing cover can be opted where senior individuals are also being covered under the policy. For example, basis the age demographics, an employer can make suitable choice to purchase best suited plans. So you can purchase insurance coverage based on your age group.

  • 3. The Claim Settlement Ratio

    The ratio of claims settled by the insurer to claims reported in a given year is known as the claim settlement ratio. A claim settlement ratio above hdfc because it indicates a higher likelihood that your claim will be approved. In addition to the claim settlement percentage, you should also see if the insurer's claim settlement procedure is swift and simple so that your employees are not hassled around in their difficult times.

  • 4. Cashless Facility

    Look for insurers who have a wide range of network hospitals empanelled with them to get Cashless treatment option, which guarantees a hassle-free hospitalisation from admission to discharge. Cashless facility not only enables health insurance policyholders to receive cashless services at negotiated prices in empanelled hospitals, it also takes off the stress of insurmountable hospital bills.

  • 5. Wellness Benefits

    Due to heightened awareness of keeping one physically as well as mentally fit during the COVID-19 pandemic, people are focusing on their mental health and wellbeing more than ever. As a result, several insurers try to include various new options which are targeted towards employees having healthier lifestyle in addition to providing financial stability in case of any misfortune. Some of these options include free health examinations, discounts on laboratories, gym memberships, free nutritionist consultations, savings on medications, tele-consultations for mental health, and the provision of free wearable gadgets that can track employees' health etc.

  • 6. Add-on Coverages

    Add-on coverages are the optional coverages which the client can opt for by paying additional premium and the most opted one amongst them is Maternity. This cover relieves the women employee of the stress of the future medical bills and hence helps her to focus on the well-being of herself and the new born baby.

  • 7. Technological Advancement

    Insurers have created various OTC portals where the employers can visit to check and compare the premium vis-a-vis the coverages. This not only saves time but also helps the insured to get everything at the click of a button. The long wait to receive the premium from insurance companies is over, however, for further negotiations and more tailor-made requirements, they may have to come to seek help of the insurance experts.

To sum up the above points to ICICI Lombard’s Group health insurance gives employers a wide range of options to pick and choose as per the need of the hour in terms of Sum insured, coverages, hospital network etc.

  • Employees' productivity rises when they feel they are valued and nothing better than a comprehensive Group Health Insurance Policy, which helps them live stress-free, can do that. Hence it is very essential to keep the above listed points in mind when entering the insurance market to get the best for your team of valued employees. A thorough search through various sources which include existing client feedback/testimonials, claim settlement ratio, customer service, etc. can be of great help.

  • Speak to our experts today to know more about our Group Health Insurance.

  • Group Health Insurance
  • Product Code: 4016
  • Product UIN: ICIHLGP21381V05202

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This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Workman Compensation, 4010 , IRDAN115P0010V01200607)