Should You Consider Only Premium While Buying GHI?

There are two ways to offer group health insurance to your employees. One is by keeping a balance between the coverage and the premium amount and another is going beyond the first approach and seeking value for money where the employee gets enough coverage.

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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

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Impact of Covid-19

Organizations around the world have suffered the consequences caused by covid-19 as it made them change their work culture and approach towards meeting their everyday goals. They have to send their employees to work from home due to lockdown in the entire country. After this, a lot of things changed. These steps were taken not only for the safety of the employers and employees but also for their family members due to the easy communicability of the virus.

After the outbreak of covid-19, the second approach has become more important. It was made mandatory by the Insurance Regulatory & Development Authority of India for all the employers to provide Group health insurance to their employees along with coverage for covid-19. Since Covid-19 has shown us the uncertainty of life and how much we should be careful about our health and be ready for any unforeseen expenses, it becomes important to get covered with a health insurance plan and be ready for any unforeseen expenses.

So, while looking for the right group health insurance policy, employers should take the second approach. They should always go for the insurance company that is flexible with their insurance policy and provide plans that are customizable, easy to renew and have the best in class customer service available.

Should Employers Consider Only Premium While Purchasing GHI?

In order to purchase the right insurance policy that your employees would appreciate and offer them great value then you must go beyond the perspective of purchasing the insurance plan on the basis of a premium only. It is advised to purchase a GHI plan that provides coverage according to the employees and their dependent needs.

Yes, the premium amount is one of the biggest factors to consider while purchasing the insurance plan but if it does not fulfill the requirement of the employees then it is nothing but a waste of money. you should make sure that the insurance company provides best-in-class service, quick claim settlement, easy renewal along with online services.

Factors to Consider While Purchasing GHI

It is right that the premium amount is a vital part while purchasing the insurance plan as it depends on how much the company can afford to purchase the policy. However, there are several other factors that you need to look after while purchasing the group medical insurance.

1. Coverage of the Plan

While selecting the group health plan for your employees, make sure that the coverage provided under the group health plan is enough for all the employees. Look for the insurance plan with no waiting period as well as covers pre-existing diseases as well. The insurance plan should also provide maternity coverage as well as coverage for the dependents in the family along with parents. It is advised not to compromise on coverage by purchasing a low-cost policy.

If the insurance plan will not solve the purpose of the employees then it would be of no use and the employees will start losing faith in you. It is because when you make sure that the employees get enough coverage without worrying about the cost of the policy, it generates a sense of trust and importance towards you (employer). It reflects goodwill and increases the loyalty of the employee towards the company.

2. Flexibility to Modify

As an employer, you should opt for an insurance company that is flexible and let you modify the insurance plan according to your requirements. Whenever you find the need of increasing the sum insured amount or enhance the coverage, increase or decrease the number of employees, etc.

It is because employees come and go every other day and this could become an extra burden to spend more of the time required to get these things done. Hence it is advised to go for the insurance company that offers great service when it comes to enhancing the coverage and increasing the sum insured amount whenever they require.

3. Customizable

Flexibility to modification is at the policy level and a job of employer however, customization takes place at an individual level. Since you cannot understand the requirement of each employee in your company, you should purchase the group health insurance plan from a company that lets the employee make customization in the plan according to their requirement.

Also, if the employee chose to enhance the coverage of their insurance plan then they will have to pay the extra amount added to the premium of the insurance policy according to the terms and conditions. This kind of customization makes the employees feel that they are an important part of the company.

4. Quick & Smooth Claim Settlement

The purpose of purchasing the insurance plan is to get the claim settlement whenever required. Since there are many insurance companies out there selling group health insurance policies, you should always check their after-sale services and whether they provide a smooth claim settlement or not.

You can check over this factor by learning about the network of hospitals they are registered with and whether they provide cashless claim settlements or not. Companies with a lower number of network hospitals have a history of slow claim settlement that can become a heavy task for the employee.

5. Online Services

Everything is done online nowadays hence look for an insurance company that provides services online. From purchasing the insurance plan to selecting, comparing, and raising claims online. Look for a website of your desired company and check whether the website works perfectly or not.

Also, look for the application on the app store on your mobile phone as many insurers have launched their mobile application. This would make it easier for the employees to do anything related to the insurance policy easily.

How Is GHI Premium Calculated?

Here are some of the factors on which the premium calculation of group health insurance depends.

  • Type of job (High risk equals to high premium)
  • The average age of employees (High age equals to high premium)
  • Number of employees along with their family members covered under the policy (More number people means higher premium amount)
  • A higher sum insured means a higher premium
  • Add-ons included (Add-ons included mean higher premium amount)
  • Number of claims raised by the company (Higher number of claims raised means a higher premium)

Employee-Friendly GHI

You as an employer should always put your employees at the center while purchasing the group health insurance plan. There should be a balance between the features and services provided under the policy and the premium amount charged but you should make sure that the insurance plan provides value to the employees instead of making their financial condition worse by paying hefty hospital bills.


While purchasing the insurance policy for your employees make sure that you take all the necessary factors into consideration instead of just looking for a standard insurance policy with a low premium amount. When you take care of your employees and their family members, they make sure to take care of your company and work harder to contribute to the growth of the company.

Written By: PolicyBazaar - Updated: 22 April 2022
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