What is Group Health Insurance Plan?

What is Group Health Insurance Plan

As the name suggests, a group insurance plan offers a health insurance cover to a specified group of people. This group may be a co-operative society, employees of an organisation, members of a professional organisation/ club, etc.

In India, different health insurance providers offer various group insurance plans, many of which are highly customisable according to your needs.

How Does it Work?

Also known as a group indemnity cover, a group insurance plan is usually provided by an employer/ organisation as a prerequisite for its employees, and may also provide coverage to the employee's dependants such as their spouse, children and parents. The cost of the premium here is borne by the employer, and the insurance continues to stay valid until the time that the employee is employed with the organisation.

Here are some  other benefits of group insurance plans that you should know about

1. Cost-effective

The cost of insurance on a per-person basis is significantly lower when it comes to a group insurance plan when compared to an individual health insurance plan. Furthermore, larger organisations may easily be able to negotiate even lower premiums basis the volume of employees, making it a lot more cost-effective to secure the well-being of the employees.

2. Easy to Manage

Imagine a mid to large size business with thousands of employees. Every now and then, you would have so many new recruitments happening. Managing an individual policy for each employee would end up being extremely tiresome. However, with a group health insurance plan, you can automatically onboard all new employees within one group insurance policy.

3. Additional Benefits

As with any health insurance plan, group plans also offer multiple benefits apart from the coverage. For example- with a group insurance plan, you don't need to go through any pre-medical screening  before availing the insurance coverage. Additionally, for most of these coverage member’s do not have to serve any waiting periods and the coverage would start from Day 1.

4. Why you Need to Pick the Right Insurance Partner?

When looking for the right insurer, don't base your judgement solely on affordability. There are various other parameters to gauge such as the network of hospitals, claims servicing, after sales servicing and other administrative/operational ease .

With Niva Bupa's group health insurance plans, you get even more than all of the above benefits. You can not only structure the insurance coverage but also create sub-limits or provide additional benefits for various employees/ members in the group.

A group health insurance plan is a great way to bring in a large number of people under the insurance gamut and improve the overall quality of life and healthcare in India.