How is a Group Health Insurance Policy Beneficial?


The global pandemic taught us various lessons, the most important being the value of health. With diagnostic bills, hospitalization expenses, and medicines for family members, savings took a huge hit. Insurance was always recommended as an investment to aid during unfortunate events, but the COVID-19 pandemic made people realize how important it is in reality! Even governments realized that it’s a priority issue. Thus, last April, they made it mandatory for organizations to have a group mediclaim policy in place. It is now a part of the standard operating procedure, which organizations must follow to resume operations post lockdown. Group health insurance benefits employees, but it also offers equal benefits to the employers. We will explain this in detail in this article.

Benefits of a Group Mediclaim Policy

Here is a list of advantages offered by a group mediclaim policy. 

  1. Benefits for the Employers
  • Loyal workforce

The health benefits offered by the organization are a key factor in determining an employee’s job satisfaction. Offering medical policies and other such benefits makes them feel like valued members. This also helps secure their loyalty to your company for the long term and reduces the time and resources spent on hiring new employees.

  • Motivated environment

When employees feel valued, they will be happy and satisfied. A happy workforce is a motivated one, and that motivation leads to the company’s success. It increases their productivity, which leads to higher revenues for the company.

  • Healthy employees

A healthy workforce means fewer sick leaves and absenteeism. Less absenteeism means more productive days for the organization. Periodical checkups will help employees maintain a healthy lifestyle.

  • Attracting the best talent

Every company aims to hire and retain the best employees. As per a survey, quality workers are 400% more productive than average talented employees. Today, quality staff members are not only attracted to salaries, but they also evaluate how invested the organization is in its workforce! Goodwill and market reputation play a significant role in attracting recruits as well. If an employer is known for poor employee satisfaction, then it will be low on the list for many people looking for work. Benefits like these help improve goodwill with your current staff members while boosting your company’s market image.

  • Affordable

Another important benefit of investing in this medical policy is that it is more economical than buying individual insurance. Since it is a bulk purchase, companies will get a discount. Additionally, since it is a business expense, employers can also avail of a tax deduction on the same.

  1. Benefits for the Employees

Now that we have talked about the benefits for the employers, let’s talk about the benefits the policy provides for employees.

  • No premium payments

We all hope to have a secure future and provide for our loved ones, but the problem is that you can’t do that if you don’t make enough money. Group insurance premium costs are solely borne by the employers. Thus, it is a free benefit for them. Moreover, if your employee wants some extra coverage, they have the option to top up their plan at an economical cost. They can also avail of tax deductions under Section 80D of the Income Tax Act,1961.

  • Sense of belonging

An employee may choose a suitable package at the time of employment. However, they also need to feel valued and appreciated to continue working at the organization. Employee benefits boost their morale and make them feel more favorable and satisfied with their jobs.

  • No medical checkups

Before an insurance policy is approved, the individual must undergo a medical exam and disclose information about existing diseases. If these do not comply with your insurer’s requirements, the policy may get rejected. For people covered under a group plan, there is no such requirement. There are no medical checkups, and employees with pre-existing illnesses are covered under the plan.

  • Easy claim settlements

When claiming insurance benefits, no one wants a complicated process or delayed settlements. Under group policies, the responsibility of settling claims falls on the employer. Employees merely need to submit the necessary documents and proof of bills. Some group policies even offer cashless claim options, where the insurance company settles hospital bills directly, while other insurers offer digital claim settlement processes.

  • Waiver of the waiting period

There is a term known as the waiting period or cooling period for insurance policies. This refers to the time period that the insured needs to wait from the date of policy issue to enjoy the insurance benefits. Under a group medical policy, there is no such waiting period. You only need to be an active employee of the organization for the benefits to be available from day one of the issue of the policy.

In a Nutshell

After reading the above article, you will have a good understanding of the benefits of a group mediclaim policy for both employers and employees. With multiple options available in the market, it becomes vital to research carefully before finding your perfect fit. Insurance companies like Plum Insurance offer professional experts who can help customize an insurance plan to suit your employees’ needs.