Cash Deposit (CD) Balance in Group Health Insurance

A cash deposit (CD) balance in a group health insurance account is made for the HR/employers with the insurance company to maintain the endorsement and servicing such as adding or deleting an employee as well as used to hold money that is intended to be used to pay for medical expenses incurred by the insured employees.

Read more

Personalised health plans that fit your organization's requirements & dedicated experts to help you choose.

No medical test required
Covers treatment towards illness and accident
Covid-19 cover

App & Website

24X7 Support

Customised Plans

15+ Insurers

Account Manager

Speedy Claims

*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

₹1 lakh cover @ just ₹110/employee*

Select No. of Employees in your organisation

By clicking on "" 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.
Get Updates on WhatsApp

Organization we are trusted by


Top Plans

Plans that covers all the Employees, their Spouse and Kids (up to 25 years of age)
See more plans
Disclaimer: The above plans and premiums are for 1 Lakh sum per life per month covering Health and Wellness needs of 7 Employees, 5 Spouse & 2 Kids below 35 years of age. The premium is inclusive of GST and do not cover PEDs & Maternity. Standard T&C Apply PolicyBazaar does not rate, endorse or recommend any particular insurer or insurance product offered by the insurer.

How Does Cash Deposit Account Function?

Initially, the employer will have to deposit a buffer amount in the CD account so that the insurer will have to bear the credit balance maintained in the account. 

CD Balance Policy

However, these accounts do not bear any interest on the amount lying with the insurer. So, whenever an employee joins, the insurance policy is purchased through endorsement and the amount gets deducted from the CD account. 

Apart from this, when an employee leaves the company, the paid amount gets refunded to the CD account. Hence the objective of a cash deposit account is to hold the buffer amount

Why is it Important to Maintain a Healthy CD Balance?

Group health insurance covers commences only after the premium has been paid for that employee who recently added/Joined. If you maintain a healthy CD balance in insurance, the newly joined employees will be covered from their date of joining. Therefore, it is important for HRs/employers who hold group health insurance policies to ensure that their CD account balances are as high as possible.

Balance to Maintain in CD Account

It is important to keep at least 10% of your total premium in a CD account so that you are prepared for any aggressive hiring plans.

Case Scenario: If the total premium for your group health insurance policy is Rs 1 Lakh then it is recommended to keep Rs 10,000 extra loaded in the CD account.


it is important for group health insurance holders in India to maintain a healthy Cash Deposit Balance. This allows the company to pay out claims quickly and efficiently, while also providing peace of mind to policyholders. By keeping your CD balance above a certain level, you can ensure that your coverage remains active and uninterrupted.

Written By: PolicyBazaar - Updated: 23 September 2022
Couldn't find the right plan?
Let's navigate the complex world of insurance together. It's actually quite simple!

Customizable plans from top insurers

starting @ ₹110/employee*

View Quotes

Group Health insurance articles

Recent Articles
Popular Articles
Section 37(1) of the Income Tax Act Employer-Employee Insurance

29 Nov 2022

Employee welfare is one of the prime responsibilities of an...
Read more
Challenges in Providing Group Health Plan for Employees

29 Nov 2022

With the rapidly changing work environment and needs of the...
Read more
Group Health Insurance for Manufacturing Industry

23 Nov 2022

Group health insurance for manufacturing industry covers medical...
Read more
Defining Room Rent & ICU limits In Group Health Insurance

07 Nov 2022

When buying a group health insurance policy, apart from the sum...
Read more
Annual Medical Check-up in Group Health Insurance

21 Oct 2022

A balanced and nutritious diet, regular exercise, and a routine...
Read more
What Is GIPSA & How Does It Work?
GIPSA stands for General Insurance Public Sector Association.It is a group of four General insurance companies....
Read more
Aspects Related To Termination Of An Employee In India
Every sector in India went through a bad phase after the impact of the Corona Pandemic. Be it the employers or the...
Read more
What is Corporate Buffer in Group Health Insurance?
Group health insurance for employees is one of the most common and favored types of benefits offered by the...
Read more
Bank-Offered Group Health Insurance Policy: Explained!
Adequate health insurance forms an important component in a sound and practical personal financial plan. Its...
Read more
Is Group Health Insurance Compulsory In India?
Group health insurance policy provides coverage to the insured employee in case of a medical emergency. It takes...
Read more