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Plans that covers all the Employees, their Spouse and Kids (up to 25 years of age)
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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.
Minimum Number of Employees Needed for Group Insurance and Exceptions
The Insurance Regulatory and Development Authority (IRDAI) mentions that a group with a minimum of seven employees can opt for group insurance. However, insurance providers can decide on the minimum size of the group.
Exceptions
- Even if the group size is less than seven employees, adding family members of the employees can help make the cut and qualify for group insurance
- Contractual or part-time workers do not qualify for group insurance, but if the workforce is primarily contractual or part-time, then group insurance can be issued
- Insurance providers cap the entry age of employees to 65 years, but if a company has an older workforce, that is, above 65 years, group insurance can still be issued
Addition and Deletion of Employee in Group Health Insurance
A group health insurance is provided to the employee when joining the organization. The employee receives coverage from day one of his time on the job. It is to be noted that the insurer has no limit (maximum number of times) in terms of changing the employee list. That means the employer can add or delete the names and details of the employees multiple times throughout the year.
But have you ever wondered how he is covered on an immediate basis? To understand this, we need to understand the function of a ‘cash deposit account’.
Maintaining Cash Deposit Account
The cash deposit account is just like a regular bank account, but for the purpose of group health insurance, it is maintained by the insurance provider for the company. A cash deposit account, unlike a banking account, is non-interest-bearing. That is, the employer does not receive any interest on the amount lying in the account.
The employer must deposit a minimum of 20% of the initial buffer amount in the cash deposit account. Thus, the account maintains a credit balance.
Employees Addition Process in Group Health Insurance
Mostly, a dedicated relationship manager is allotted for group health plans. Any instructions with regards to the addition or deleting of the employee data from the policy can be given to the relationship manager. Alternatively, with an online and app-based service, the employer can himself can submit and track requests for any changes.
As we know, if a new employee joins the group, the insurance policy is purchased by endorsement. This endorsement document is attached to the main insurance contract and amends the policy. Once the endorsement is done, the premium amount is debited from the employer's cash deposit account. The employee is then covered for the mentioned health risks from day one of his joinings.
Employees Deletion Process in Group Health Insurance
Similarly, in case the employee leaves the company, a process to delete the employee data and record needs to be initiated. While deleting the employee from the employee list, the paid premium is reimbursed or refunded to the employer's cash deposit account. The insurer pays this refund to the employer at the end of the insurance tenure.
In other terms, addition and deletion of employees is also known as group health insurance endorsement process.
Conclusion
Adding or deleting employees from group insurance plans is no longer a tedious task. Thanks to technological advancement in the insurance sector, administrative processes like these are now instant and hassle-free. A sufficiently funded cash deposit account ensures that no risk is uncovered.
Written By: PolicyBazaar - Updated: 25 August 2022
