As per a survey conducted by ET money, more than 45% of health insurance policyholders are not satisfied with the coverage. A similar scenario is has been observed among the group health insurance policy buyers. It is important for any employer purchasing a group health plan to learn about the coverage and understand if the employees will be satisfied with it or not. However, it becomes equally important to know about the cancellation of the group health insurance plan in case of cancellation of the policy.
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Cancellation Of Group Health Insurance By Policyholder
It is suggested to learn about the coverage while purchasing a group health insurance policy. In case you have purchased a group health insurance policy and find that the employees are not satisfied with the coverage then you just have to inform the insurer prior cancellation of the policy. Most of the insurance companies have a notice period of 30 days but it varies from one company to another.
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What you need to understand here is that your employee will not be able to raise a claim during the notice period. In this case, it is suggested to keep a backup option ready so that any of the employee willing to raise a claim can do so and get proper coverage for the hospital expenses.
Once the notice period is over, the insurer will cancel the group health plan and refund the premium amount that was not utilized during the tenure that will exclude service tax. Also, remember that the insurer will only give you the refund when none of your employees has raised a claim during the policy tenure.
The refund of the premium amount also depends on the time passed since the initiation of the group health plan. It means that if the policy duration of your insurance plan is about to end then you may not get any refund. Have a look at the table below to under the percentage of refund you would get after the cancellation of the group health insurance plan.
A refund will be provided based on the number of days left.
A refund is provided based on the number of days left.
366 to 455
Not Applied
25%
456 to 545
Not Applied
12%
Crossing 545 days
Not Applied
0%
Automatic Cancellation of Group Health Insurance Policy
The insurance company automatically cancels the group health insurance plan in case of the sudden demise of the insured. Then the insurer makes the refund on the basis of above mentioned parameters. Also, if the insurer has raised a claim then no refund will be provided.
For instance, Ramesh works under the ABC company. During the course of his employment, he has raised a claim once. Due to his sudden demise, the insurance company cancels the insurance policy. Since he has raised a claim once the insurance company will not provide any refund.
Cancellation of Group Health Insurance By Insurance Company
The insurance company can cancel your group health insurance policy. For that, they too have to provide a 30 days notice period. They will also have to refund the unused premium amount only if no claims have been raised during the policy tenure. The parameters of the refund stay the same.
Dishonest Act By Insured
If any person on behalf of the insured or the insured person himself has acted dishonestly, the insurer can cancel the policy.
Misrepresentation of Material Facts
If the insured has not represented the material facts transparently, the insurer can cancel the group health insurance plan.
Non-Renewal of Insurance Policy
Not renewing the insurance policy on time is one of the reasons why the insurer cancels the group insurance plan. If the insured does not renew the insurance policy before the expiry date, the insurance plan lapses, however, the insured gets a grace period during which he/she can renew the insurance plan to get continuous coverage under the group health insurance policy.
Ans: Yes, the insurer can cancel the group health insurance policy, in case the insured does not renew the policy even during the grace period, in case of any kind of dishonest act by the insured towards the insurer, in case of misrepresentation of facts while purchasing the policy and the insured finds out about it.
Ans: No, if any of the employees have raised a claim before the cancellation of the group health insurance policy, the insurance company will not provide any kind of refund.
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Dehradun
4.3 April 01, 2023
Mahesh
Necessary Investment
It is a good and necessary investment. Thanks PB.
Lucknow
4.3 March 24, 2023
Surya
Provides Satisfactory Results
I purchased Group health insurance at policybazaar recently and i am so much satisfied with the plan. The application process was smooth and efficient, making the typically tedious task of getting insurance surprisingly hassle-free.Thanks PB.
Bareilly
3.8 March 16, 2023
Naveen
Helpful In Making Decisions
When it came to selcting the right Group Health Insurance, Policybazaar offered an impressive range of options from reputable insurers. I appreciated the comprehensive details avalable for each policy which helped me to take the better decisions. Thankyou.
Delhi
4.3 March 15, 2023
Rajesh
Increases Clients Expectations
I recently had the pleasure of securing a Group Health Insurance policy throug PolicyBazaar and I must say the Entire process exceeded my expectations! From start to finish, their service werw great. Thankyou.
Delhi
3.8 March 02, 2023
Ravi
Great Experience
I got great deals on PolicyBazaar website. Highly recommend.
Pune
4.3 February 17, 2023
Diljeet
Excellent Purchase
It was a excellent purchase at PolicyBazaaar. Thankyou team.
Coimbatore
4.3 February 04, 2023
Satya
Prompt Services
Policybazaar's efficient claims process was impressive. In case of any medical emergencies, my employees were able to get their claims settled swiftly, allowing them to focus on their health and recovery without worrying about financial aspects.Thankyou
Chennai
4.3 January 22, 2023
Abhishek
Budget Friendly Purchase
Thankyou PolicyBazaar for providing such a great plan at affordable premium rates. It was a budget-freindly purchase.
Delhi
4.3 January 09, 2023
Abhash
Multiple Range Of Benefits
I purchased Group health Insurance which offered me plans with affordable rates Thankyou PB.
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+Premium starting from ₹110/Employee/Month for ₹1 Lac Sum Insured covering Health & Wellness Needs (excluding GST), Premium may vary on the basis of coverage type & add-ons, All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply By clicking on "Next" you agree to our Privacy Policy and Terms Of Use and also provide us a formal mandate to represent you to the insurer and communicate to you the grant of a cover. The details of insurance coverage, inclusions and exclusions are subject to change as per solutions offered by insurance providers. The content has been curated based on the general practices in the industry. Policybazaar is not responsible for the factual correctness of these details.