Is Group Health Insurance Compulsory For Employees?

Group health insurance is the best way of helping your employees pay their hospital bills without them spending their savings. For this employer have to pay a premium amount annually and the insurance company provides financial aid to the employees insured under the plan. So, technically employee gets insurance coverage for free. Also, a group health plan has been recently made mandatory for the employees.

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Is Group Health Insurance Mandatory In India?

After the outbreak of Covid-19, the whole world has been through the worst of times. Countless lives were lost due to this deadly virus and almost everyone fell sick. The offices were closed and people were sent to work from their homes. The government enforced countrywide lockdown for months.

Insurance companies were ordered to design a covid-19 specific insurance plan by the IRDAI. Once the covid-19 specific insurance plans were out in the market, the group health plans were made mandatory post the Covid-19 lockdown in 2020.

Before getting ahead, here is a quick explanation of a group health plan:

  • When you purchase health insurance just for yourself, it is an individual health plan.
  • When you purchase health insurance for your family, it is a family floater plan.
  • When you as an employer purchase a health insurance plan for your employees, it is a group health insurance plan.

Basic Coverage Provided By Group Plan

The employees of a company can get free medical facilities if the company they work for provides a group health plan. It is because the premium amount is paid by the employer. The insurance plan comes with a limit as per the company’s affordability. The plan provides cover for hospitalization expenses if the employee gets sick or gets injured.

No specified rule mandated group health cover before 2020. After the Covid-19 lockdown, IRDAI introduced new rules and regulations. The updates are as follows:

  • IRDAI on April 1, 2020, issued a circular and made medical insurance mandatory for the employees.
  • Post lockdown the companies were asked to offer an insurance plan that could provide medical coverage so that a healthy workforce can go on.
  • The circular was issued by the IRDAI to the Insurance companies in order to implement the orders of the Ministry of Home Affairs.
  • IRDAI advised the non-life insurance companies to design a simple worded, affordable comprehensive insurance plan.

There are employer-sponsored health plans that are employee-specific. Let us move on to tell you about these plans.

Employee State Insurance & Group Health Insurance

The employees working in an organized sector in India are provided with a medical insurance plan. The medical plan is provided under the Employee State Insurance Act, 1948. The employee who work on a monthly salary of Rs. 21,000 or less can avail of the Employee state insurance. Under this insurance plan, both employer and employee have to contribute to the ESIC. Whenever required the employee can get the benefits provided by the corporation.

Since ESI is provided to the employees working on a monthly wage of Rs. 21,000 or less but the employees with monthly wage above Rs. 21,000 are provided with the group health plan. In case you want to learn more about the insurance plan you can talk to your company’s HR.

What Does A Group Health Plan Provide?

A group health plan provides several benefits to the employees of a company. They are as follows:

Free Coverage For Medical Expenses

Since the group health plan is provided by the employer and the premium amount is also paid by the employer hence the medical expenses coverage comes for free. The group health plan also provides cover for the dependents of the insured employee.

Easy To Monitor

You can easily monitor your health insurance plan’s status. Since everything is done online, you can easily monitor your insurance plan’s status. Also, you can contact your company’s HR for a better understanding.  

Quick Claim Settlement

The group health plan provided by the company offers great coverage and when it comes to claim settlement, the employee does not have to go through much hassle and the claim settlement is done easily since the expense settlement is done between the insurer and the employer.

Conclusion

After the outbreak of Covid-19, the government made it mandatory for all corporate companies to provide group health insurance policy so that employees can work without stressing about unforeseen medical expenses. However, when it comes to purchasing the right insurance plan, it is advised to purchase the plan online because it is cost-effective and you can calculate the premium rates of the desired plan online using the online premium calculator.

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Policybazaar for Business - Group Health Insurance - Customer Reviews
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4.4/5
Based on 189 reviews
4.4
out of 5
Based on 189 reviews
38 users
136 users
15 users
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3.8 April 09, 2023
Mansi
Excellent Support
It was easy to buy insurance from PolicyBazaar website and customer support was also amazing to clear all the doubts.Thankyou. Highly worth it.
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.
Pune