What Is Group Health Insurance Policy? How Does It Benefit?

One of the most interesting questions in this era is "What is group health insurance?" It is all about caring about the health of your employees & their family members. Read more
Team Loop Health
March 1, 2021

Caring about your employees’ health is always on the cards for every type of organization. After all, a healthy employee is a happy employee. And happy employees result in higher productivity & maintaining a better culture within the organization. It sounds so beneficial, isn’t it? Of course, Group coverage health insurance is beneficial for both employers and employees.

Why not explore it more & how it benefits the organizations and employees, various plans, and terms and conditions.

What Is Group Health Insurance Policy?

Quoting from the web, ‘A Group Health Insurance policy is a type of health insurance plan that covers all employees who work under the same organization. This is often offered as a valuable benefit for employees as the premium for the same is borne by the employer. The group medical insurance can be extended to the family members of the employees in some cases. This insurance plan is also referred to as corporate health insurance or employee health insurance.’  

As it is explained in the above quote, group health insurance is all about caring about the health of your employees & their family members. But why is it so necessary to provide one? (apart from the fact that it is now mandatory to provide GHI)

All you need to know about a group health insurance policy
Benefits of Group mediclaim cover

What Are The Benefits Of Group Health Insurance?

To understand the benefits of group health insurance plans, let’s take a real-life incident & then dissect it further. (Names have been changed to respect privacy)

Rohit was working with a multinational company called ACME Pvt. Ltd  (HQ in Germany) as a senior marketing manager. He enjoyed a salary of 9 lakhs per annum & ACME gave its employees & their respective families, group health insurance coverage up to 10 lakh rupees. In his tenure of 4 years, he never used the coverage provided to him.

In the month of January, he got an offer from MAC Pvt. Ltd to head their marketing efforts with a whopping package of 15 LPA. Their health benefits were different as compared to ACME, offering an employee-only coverage of 5 Lakhs. He decided to accept this offer.

Unfortunately, Rohit’s mother got diagnosed with cancer in the month of March. After a rigorous line-of-treatment that went on for 6 months, sadly she passed away. The cost for the treatment went up to 13 lakh rupees. Paid out from Rohit’s savings since MAC didn’t provide a health benefit plan that would cover his family.

Even if they did, their cap of 5 lakhs would’ve still required Rohit to reach deep into his savings & pay the remaining 8 lakh rupees. Today, Rohit regrets leaving ACME & praises their people-centric health policy.

Benefits of group health insurance policy
Group Health Insurance

Learnings

Employees value good health benefits. Sometimes even more than their CTC. It boils down to just how has HR communicated the benefits to them. Stories like these are quite common & employees are well aware of it.

Employees with corporate health insurance can also get various benefits like maternity benefits and no waiting period for covering pre-existing conditions. Good health benefits help retain these valuable talents across departments. 

Some of you might be thinking that ACME really dodged a bullet there. The claim amount must have increased their premium amount in the next year. It’s partially true in this case but not every case is going to be this serious.

On average, more than 60% of the total claims come in from easily preventable sicknesses like cold, cough, fever, etc. If you manage to address these diseases early-on then you can focus on these bigger unpreventable claims. 

Currently, there are players in the market that bundle in these preventive care services for free with the GHI, like Loop Health. Partnering up with players like these will help in providing affordable, engaging & efficient health benefits, medical expenses irrespective of your organizations’ financial situation. 


In the end, it is necessary for organizations to invest in group coverage health insurance. So why not make the best of it & really make your health benefits work in favor of you, your work family & the organization. Companies offering group mediclaim insurance to their employees can also receive tax benefits under several sections of the Income Tax Department. Sign up with us here to avail the tax benefits for group medical insurance.

Interested in learning more about Group Health Insurance? Click here

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