Do You Think Your Corporate Health Insurance Is Enough?

Often, we only depend on the health insurance policy provided by our employers, but it may not be sufficient to meet our and our family’s needs. Find out why

Read More
Do-you-think-your-corporate-health-insurance-is-enough-1.jpg

Corporate Health Insurance

So, what is corporate health insurance? Put simply; corporate health insurance is nothing but health insurance for an entire corporate entity that offers the same benefits, such as health insurance coverage for accidents, medical conditions, surgeries, procedures, dental procedures, recovery expenses, and so on, for the employees of the company. Corporate health insurance is also referred to as group health insurance, and the insurance policies are referred to as group health insurance policies or group health insurance plans.

The concept of corporate health insurance is extremely beneficial for both the employer and the employee. A prospective employer's benefit of health insurance is considered to be nearly as important as the monetary compensation provided to an employee as a corporate benefit of working for the company. Therefore, offering attractive health insurance benefits in group health insurance policies could be the making force for an exemplary and satisfied workforce.

As more and more corporations are looking to set up their base in India, corporate health insurance will continue to be a top priority in the list of employee benefits and salaries and other perks. It is one factor that can determine whether any qualified individual will want to work with the corporation. Therefore, group health insurance policies and benefits are no longer simply ambitious concepts that sit in the background of considerations when a job offer is made to a candidate. They rather take the mantle in the list of employee benefits that any eligible individual is entitled to.

Salient features of corporate health insurance

The salient features of corporate health insurance policies are listed below for your reference: -

1) A blanket waiver of the standard waiting period.

2) The group, health insurance coverage, extends to the employee and the family, including the spouse, children, and parents that are dependent on the insured person(s).

3) Pre-existing illnesses for any employee are also included in a group health cover by the insurance company.

4) Maternity benefits such as waiver of the standard waiting period, insurance cover for normal and c-section deliveries and insurance cover for the child's vaccinations are included in corporate health insurance policies.

5) Benefits of cashless treatment at hospitals that are part of the health insurance company's network along with monetary compensation in respect to specialized consultations with doctors.

What are the benefits of corporate health insurance?

The benefits of corporate health insurance exist on primarily two levels. It confers certain desirable benefits unto the corporate setups or the employers and multiple benefits, of course, on the target group – the employees. Keep reading to understand how corporate health insurance benefits both employees, as well as the employer.

Benefits for Employees

1) Unlike individual health insurance, corporate health insurance has a relatively wider scope of application regarding the insurance coverage provided for different types of diseases. Generally, group health insurance plans don't restrict the number of diseases covered under the policy.

2) Under corporate health insurance plans, the maternity benefits granted are of extreme importance to the gradually emerging female workforce in the country. It allows female employees to pursue their professional dreams without worrying about their financial situation when they wish to have children. Having health insurance coverage offered by the company can help them take the best care of their child(ren) and not give up on their professional dreams and career goals. Corporate health insurance policies generally provide insurance coverage for regular deliveries and surgically done C-section deliveries. Many plans also pay for the vaccinations and post-hospitalization recovery of the mother as well as the baby!

3) Standard health insurance plans for individuals provide for a minimum waiting period before insurance coverage kicks in for a disease that the health insurance policyholder already had when subscribing to the health insurance policy. However, in group health insurance plans, no such waiting period is prescribed for the insured persons. The commencement of insurance coverage starts from the day that person is hired to the company and will stay in place until the person remains employed at that company.

Benefits for employers

1) Employers' first and foremost advantage is that having a group health insurance plan for employees offers a massive incentive for a quality workforce to join the company. It also allows the employers to enjoy better customer loyalty from employees as most employees would not want to forego a comprehensive health insurance plan. Offering quality corporate health insurance is one of the most attractive offerings for a talented employee.

2) Offering comprehensive group health insurance policies for your employees communicates that the company cares about their health. Hence, they are more motivated to perform better for the company. Ultimately, along with the employees, even the company benefits from this type of motivation.

3) Purchasing group health insurance policies for employees also ensures that the company can offer extensive benefits to employees at a minimal cost.

4) Last but not least, purchasing corporate health insurance policies for the employees will confer certain tax benefits on the company.

There are some features that employers must look for in a given corporate health insurance policy.

1) The health insurance policy must offer around the clock insurance coverage for the employees.

2) Be sure to check and re-check the total insurance amount of any given health insurance policy.

3) The corporate health insurance policy must-have features like options of customization of benefits, cashless treatment at partner hospitals, daily cash benefits in the event of hospitalization etc. This will go a long way in ensuring that your group health insurance policy fulfils its purpose of not only protecting the employees but also keeping them motivated.

What are the main differences between corporate health insurance policies and regular health insurance policies?

Knowing the differences between corporate or group health insurance plans and regular health insurance plans can play a crucial role in determining the policy that is more beneficial in the long term. One of the biggest differences between corporate health insurance and regular health insurance is that corporate health insurance plans are exclusively available for individuals working at a given company. It is this corporation that has made these health insurance plans available for the employees. On the other hand, regular health insurance plans are the health insurance policies that an individual must purchase for individual coverage or family floater coverage.

There are some technical differences between the two types of health insurance plans too. A group health insurance policy, is essentially a bulk purchase of health insurance for the employees. Hence, health insurance companies often provide a waiver of the standard waiting period, which would be mandatory in a regular policy. Additionally, one of the biggest benefits for both employers and employees is that the net premium that needs to be paid toward the health insurance, on an individual level, is substantially cheaper than regular health insurance plans for individuals.

What are the disadvantages of corporate health insurance?

There is no doubt that having corporate health insurance can be a boon for both employers and employees. However, that does not mean that corporate health insurance is all sun and no rain. No matter how comprehensive they are, corporate health insurance policies do have some caveats that require thorough consideration.

1) A corporate health insurance policy is only active during the employment tenure. For any reason, if tomorrow you are forced to leave the job, your entire financial, mental and medical security is gone with that job. You must then subscribe to an individual health insurance plan that kicks in after the standard waiting period. This can also be generalized to a situation where a person does not have individual health insurance and is about to retire. In such a situation, the person will be left medically unprotected for the foreseeable future since corporate health insurance lapses after retirement.

2) When you decide to get an individual health insurance plan later in life, the premium is bound to be substantially higher as the insurance company must factor in the risk associated with old age!

3) Additionally, group health insurance policies, since they are bought in bulk, even with customization options, offer standardized coverage. As a policyholder in a group health insurance setup, adding your family as beneficiaries is difficult, unlike individual health insurance policies. Moreover, a large amount of control over the details and technicalities of that policy will be handled by the employer.

4) Another major challenge with group health insurance policies is that even though they are substantially cheaper than individual health insurance plans, group health insurance policies do not offer any accumulated benefits. Therefore, even if you don't use the total insurance amount each year or during your employment tenure, you are not rewarded.

When compared with the benefits offered by group health insurance plans, these caveats do not hold much ground. Most of the challenges here are technical and can very well be dealt with without any hassles.

FAQS:

  • What is corporate health policy?

    Corporate health policy is also commonly known as corporate health insurance policy or group health insurance policy. In a corporate health insurance policy, an employer or a company purchases health insurance policies for all the company members. These policies provide health and monetary cover such as insurance coverage for medical emergencies, accidents, and so on.

  • Which is the best corporate health insurance?

    The best corporate health insurance is selected based on multiple factors. First and foremost, these factors are the benefits offered to the insured persons or the policyholders. Along with this, the types and varieties of health insurance policies available and the procedure to claiming insurance relief in any given insured situation play an extremely important role in determining the quality of that health insurance. Moreover, additional advantages such as cashless treatment options at network hospitals, the number of hospitals in an insurance company's network, the customer support service on offer and the figures for the claim settlement ratio all contribute toward making any health insurance policy the best one, in a corporate set up.

  • Which expenses does corporate medical insurance cover?

    According to the individual policies, corporate medical insurance covers family health and individual health insurance plans that grant insurance cover as and when necessary. Moreover, pre-existing diseases are covered for employees under corporate health and medical insurance policies and comprehensive maternity coverage that extends to the vaccination of the newborn child. Additionally, emergency financial support is included in the health insurance policy in a corporate set up to safeguard an employee's financial condition while also preserving his or her health and promoting recovery.

  • What is the minimum entry age for corporate health insurance?

    The employee must be 18 years or more of age to be eligible for coverage under corporate health insurance. Simply put, you are eligible for coverage under a corporate health insurance policy only if you are old enough to be legally able to work with an employer.

  • How do I pay the premium for a corporate health insurance plan?

    In the case of a corporate health insurance plan, the employee pays the premium to the insurance company. Suppose there is any employee contribution towards the premium. In that case, the same will be deducted from the salary and then paid to the insurance company by the employer after paying the employer's share of the premium.


Share This page


From Our Blog

Navi General Insurance Limited
IRDAI Registration No: 155 | CIN: U66000KA2016PLC148551