What Is Corporate Buffer in Group Health Insurance
- Author :
- TATA AIG Team
- ●
- Last Updated On :
- 04/06/2024
The vast majority of organisations recognise the importance of employee well-being and offer group health insurance. It protects the employees' health and offers them financial assistance when any medical emergency occurs.
Organisations opt for group insurance policies based on their financial capacity and requirements to protect their employees. However, the ever-rising cost of healthcare has compelled organisations to offer medical protection to their staff beyond group medical insurance by providing them with corporate buffer mediclaim.
If you are new to this terminology, read on to learn more about the corporate buffer amount meaning, modes of availing corporate buffer, etc., in this article!
What is Corporate Buffer in Health Insurance?
A corporate buffer is an added financial pool maintained at the organisation level to assist employees in case of medical emergencies such as critical illnesses. This assistance is over and above the group insurance that is offered to the employees and can be extended even for non-critical illnesses if the employee has exhausted the sum assured.
In other words, a corporate buffer is an added cover that the employees get (based on approval) when the standard health coverage falls short. It is essential to mention that if an employee wants to use the corporate buffer for himself or his family members, he must have exhausted the family floater coverage.
Benefits of Corporate Buffer
Added Financial Cover: The corporate buffer in a group medical insurance policy provides additional financial assistance to the employees, allowing them to access higher medical coverage beyond the standard health insurance policy amount.
Beneficial for Employee Retention and Recruitment: When an organisation offers a corporate buffer in health insurance, it boosts the employee confidence in the organisation. Old employees continue working and it also helps the company to acquire new talent.
Improves Employee Well-Being: When employees receive added medical coverage, it ensures their good health and well-being and reduces the financial burden related to severe health issues.
How to Avail Corporate Buffer in Group Mediclaim Policy?
Since the company holds the corporate buffer, any employee who wants to utilise it must approach the company. The company has the authority to decide if the buffer amount will be allocated to the employee or his family.
Though there are no specific rules or conditions for releasing the corporate buffer amount, it is at the discretion of the organisation on a case-to-case basis. Employees can apply for the corporate buffer by submitting a few documents to the company, which includes the following:
Medical reports confirming the illness
Doctor’s certificate showing the course of treatment required
Complete medical records
Cost estimate of the treatment required
Documents showing that the family floater plan has been exhausted.
Critical Illness Under Corporate Buffer
Critical illnesses are not covered under standard health insurance policies. Moreover, the cost of treating life-threatening diseases is higher than that of regular diseases, creating an added financial burden on employees.
In such a scenario, the presence of a corporate buffer prevents the employees from spending large sums of money, providing much-needed financial assistance.
What Expenses are Not Covered Under Corporate Buffer?
The following expenses may be out of the scope of a corporate buffer in health insurance:
Maternity Cost: The employer determines whether or not maternity expenses will be covered under the corporate buffer.
Excess Costs: Every organisation sets a limit on the amount available under the corporate buffer. Additionally, every benefit given under the corporate buffer will also have a specified limit.
The employee will bear any expense over and above the limit. For instance, if the amount granted for heart attack treatment under the corporate buffer is ₹1,50,000, but the actual cost incurred is ₹2,00,000, then the excess amount will be borne by the employee.
Conclusion
A corporate buffer in group mediclaim policy acts as a financial cushion for the employer and employee. While it provides the employee with additional financial assistance, it enables the company to be better prepared to handle any unexpected expenses.
Therefore, corporate buffer mediclaim is a strategic tool that fosters a healthy relationship between the employer and employee and proves the company’s care towards its employees. Another way in which organisations can protect their businesses and employees is with the right SME insurance from Tata AIG.
Group medical policies are part of business insurance and offer benefits such as comprehensive coverage, inclusion of pre-existing diseases, affordability, and coverage for the employee's family.
FAQS
Can all employees access Corporate Buffer?
Yes, a corporate buffer is accessible to all employees. When they have exhausted their group insurance, they can apply for the amount from the company.
What are some of the critical illnesses?
Some of the critical illnesses are as follows:
Heart attack
Cancer
Kidney failure
Lung failure
Stroke
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.
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