As a business owner, you might wonder whether you qualify for a group health insurance policy or not. Moreover, employees also seek information on whether or not they are protected by health insurance while they are working.
Understanding the group mediclaim eligibility helps all the parties involved stay informed about their rights and responsibilities. Thus protecting them against financial or physical loss.
Who Qualifies the Eligibility For Group Health Insurance?
Small Businesses
Small businesses with 20 to 50 employees can offer their employees group health insurance. Although they might have a limited budget, insurance protection still motivates employees. With leading insurers like TATA AIG, even small businesses can insure their employees for an affordable premium.
Medium-Sized Businesses
Medium-sized businesses have 250 or fewer employees. They are slightly bigger than small businesses and thus have a bigger budget to invest in insurance. Investing in group health insurance policies helps medium-sized businesses enhance employee loyalty and attract the best new talent.
Corporations
Big companies and corporations also meet the eligibility for group health insurance. They have a larger number of employees and great financial power to invest in the best health insurance policy for their employees. It gives them flexibility and extensive coverage without worrying about budget constraints.
Other Groups
Other employee groups, such as cooperative societies, associations, and trade unions, can also opt for group health insurance protection. These groups can afford health insurance by pooling their finances and sharing risks among the group members.
What Is Covered Under IRDAI Group Insurance Guidelines?
Group health insurance provides comprehensive coverage for various risks and losses. Here are some of these.
- Hospitalisations and Medical Surgeries: Group health insurance provides coverage for emergency hospitalisation, surgeries and other treatment options.
- Maternity Cover: Some group health insurance policies provide maternity coverage that includes pre- and postnatal medical care, helping ease employees’ financial stress.
- Post-Hospitalisation Costs: Group health insurance policy also provides coverage for post-hospitalisation costs for a specific period.
- Out-Patient Service: Some group health insurance providers also cover out-patient service charges so employees do not have to stay hospitalised.
- Previous Conditions: Several health insurance plans also include pre-existing conditions, which are normally excluded from individual insurance.
Importance of Group Health Insurance Policy For Employers and Employees
Group health insurance is beneficial for both employees and employers. Here are the benefits both parties can get.
Benefits For Employees
- Comprehensive Protection: Group health insurance provides employees with the assurance that they are covered financially and medically in emergencies. The insurance covers hospitalisation, surgeries, doctor’s visits, etc.
- Maternity Coverage: Welcoming the joy of a baby also comes with financial responsibilities. With group health insurance, employees can rest assured that they will get good medical care during this phase of their lives.
- Preventive Care: Several group health insurance policy companies provide preventive care facilities, such as annual medical tests and doctor’s consultations. These help employees avoid any serious issues in the future.
- No Waiting Period: Group health insurance does not have a waiting period. Thus, employees get coverage instantly after signing documents.
Benefits For Employers
- Tax Benefits: When companies contribute to the group health insurance premium, they can get benefits that are subjected to tax deductions under Section 80D of the Income Tax Act, which helps reduce businesses’ overall tax liability.
- Cost-Effective Coverage: Group health insurance is a cost-effective method for employers to provide employees coverage without any risk. As the financial risk is distributed among large numbers of employees, it is an appealing investment for small and mid-size businesses.
- Attracting Best Talent: Companies that provide employee benefits like group health insurance help attract new talent and retain the old ones. Moreover, when employees feel valued in an organisation, they are more likely to be productive and loyal.
Summing Up
A group health insurance policy is a great investment and benefits both employees and employers. For employees, it provides financial coverage for their medical emergencies, and for employers, it offers the chance to create a better workplace.
The best part is that it covers major categories of organisations. Smaller and mid-size companies can afford group health insurance even with a limited budget and get employee protection. For larger corporations, it is a great investment for better employee satisfaction and performance.
