group health insurance

What needs to be checked while buying group insurance for company employees?

As an employer, it is often an effort to motivate your employees. Whether it is through food or perks and benefits, a happy workforce is necessary for a long-lasting and successful business. Out of all kinds of employee benefits, offering health insurance is one of the most significant. Not only is offering health insurance a factor in high talent retention and workplace satisfaction, but it also provides other benefits, such as tax relief. This makes group health insurance an excellent choice for most employers who want to foster a great work environment while ensuring the well-being of their employees. 

In this article, we will explore what group health insurance is, what factors to consider when purchasing a policy, and where you can buy the best policy for your employees. 

What is group health insurance?

Group health insurance is a type of insurance policy offered to businesses or groups of individuals with common interests. There are typically two kinds of groups that are provided insurance:

1) Formal 

A formal group will typically be a professional scenario where an employer offers insurance to their employees. 

 2) Informal

An informal group, on the other hand, is a group of individuals with shared objectives, such as people travelling together or being part of the theatre club, etc. 

What are some things to consider when purchasing a policy for your employees?

  1. Understand the coverage requirements

As the policy aims to provide insurance to your employees, asking them about their requirements is beneficial. For example- pre-existing disease coverage

  1. Claim settlement ratio

This metric helps judge an insurer’s reliability and understand if a claim will likely be settled. 

  1. Network hospitals

As an employer, it may be essential to check if your employee’s preferred/nearby hospitals are a part of the insurer’s network. 

  1. Diagnostics and wellness coverage

In 2023, diagnostic systems have become so advanced that they can detect the beginning stages of illnesses, which helps prevent them right from the onset. 

  1. Legal requirements

Specific legal requirements might need to be considered when buying insurance for your employees. Such as for any occupational hazards, etc.

What is the Eligibility Criteria for a Group Health Insurance Policy?

In India, the regulatory authority for insurance, the IRDAI, has set the minimum requirements for availing insurance for a group. While these are common requirements, checking the requirements for your specific insurance provider is also recommended.

  1. There is a minimum number of members required in the group. This number is typically 20 but might be higher depending on the insurance provider. There are, however, some provisions to offer the policy if the employee’s family members are covered. 
  1. The group must not be formed for the sole reason of buying insurance at a preferable rate.
  1. Students, sole entrepreneurs, and family businesses are typically not eligible for group insurance. They need to consult with their specific insurance provider for further details. 

Availing insurance for your group is a streamlined process. One can do their research, shortlist several providers, and request them for their offerings. Once they have understood the pricing and offerings, they can understand any specific requirements of their employees and go ahead with the contract. 

Where to get the best group health insurance policy?

If you are considering getting insurance for your company, consider Niva Bupa. Niva Bupa is one of India’s leading and reputed insurance providers. They offer the best plans for my specific needs, and you can also check them out. You can also use the factors mentioned in the “things to consider” section to compare insurers for your specific needs and requirements.

Conclusion

Group health insurance is an excellent gift for your employees to ensure their well-being and foster a healthy work environment. Not only does it promote talent loyalty, but it also makes the workplace a healthier, better, and more productive place. So get the right corporate health insurance for your employees today and ensure the safety and well-being of your workforce.

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