Is Group Health Insurance Mandatory for Employees in India?

  • Author :
  • TATA AIG Team
  • Published on :
  • 14/03/2024

Health insurance has always been an integral part of one’s financial plan. So much so that job seekers look for corporations that offer group health insurance policies as one of the benefits. A group medical insurance can help with added coverage over and above the individual health insurance plan.

When you think about which insurance is mandatory in India, motor insurance comes to your mind. So, is group medical insurance mandatory for employees in India? Let’s discuss this in the article below.

Is Group Medical Insurance for Employees in India Compulsory?

Yes! The group medical insurance for employees in India is a mandate.

The provision of group health coverage by companies to their employees is a mandate in India post-pandemic.

Earlier, there were no such regulations mandated by the government for health insurance or employee group policies. However, when the country was grappling with the pandemic (COVID-19), and it became a serious issue, group health policy was made compulsory!

On 15th April 2020, the Insurance Regulatory and Development Authority of India (IRDAI) issued a circular mentioning the new rule. This new rule mentioned that:

All the corporations in India were supposed to follow a certain set of rules in order to restart the offices. The offices could be restarted only by following a certain Standard Operating Procedure, which was to provide employee group health policies to their employees. The circular mentioned that comprehensive and all-inclusive health insurance for employees was compulsory.

So, the answer to “Is GMC available in India to employees?” is yes!

Basic Coverage For Group Health Insurance Plans

When an employer buys an employee health insurance policy, in most cases the employer sponsors the policy altogether. This allows the employees to avail of the policy benefits free of cost since that is, they do not have to pay any premium.

The basic coverage of a good and reliable group health insurance covers the potential financial burden of the employee at the time of medical emergencies up to a certain limit. This policy primarily covers the employee’s healthcare expenses and may also extend the coverage to the dependent family members as well.

The insured or the employer can add various riders in order to expand the scope of coverage and safeguard their employees. Many useful add-ons available, like preventative healthcare, convalescence expenses, maternity cover, organ transplant, cashless claims, etc., can be added to enhance overall policy coverage.

Advantages Of Buying Group Health Insurance Plan For Employers

The employers can enjoy tax benefits. The policy premium they pay for the policy will be deductible from the company’s taxable income, resulting in a reduced tax amount.

The group health insurance provides a way to attract and retain top-notch talent. Since the company and employer provide the support required in the future, the employees build trust with the employer and stay committed to the organisation. New talent, too, gets attracted by the benefits offered by the employer.

The cost-effective nature of the group health insurance offers even more satisfaction. The policy is designed in a way that keeps the premium affordable and yet offers great coverage.

Apart from all the other advantages, buying an employer-sponsored group health insurance will help the company comply with the mandate ruled by IRDAI and the Ministry of Home Affairs.

Advantages Of Group Health Insurance Plan For Employees

Group health insurance policies provide comprehensive coverage free of cost (if completely sponsored by the employer). It is also a splendid opportunity to safeguard the healthcare finances for their future.

It provides financial security for a long time and hence also provides peace of mind. With a free insurance policy, you can be carefree and live your life with little to no financial burden related to healthcare. With the increasing inflation in the healthcare industry, having adequate health insurance coverage is important. Group health insurance policies are great for bridging the gap between the required and existing health insurance coverage.

The group health policies offer coverage for the employees’ dependent families. This includes their spouses, children, or dependent parents.

Group medical insurance motivates the employees as it offers peace of mind, and improves the satisfaction of working in the workplace. This thus results in enhanced productivity by the employee.

Having health insurance is a necessity in today’s times. Most people, out of ignorance or lack of awareness, tend to avoid investing in such important policies. The group health insurance offers ease in accessibility of the plans.

Complete Care With Tata AIG’s Comprehensive Coverage

Investing in Tata AIG’s company insurance policies or commercial insurance policies offers valuable benefits for your business. One such policy is group medical insurance, which provides group insurance for employees.

It has a comprehensive scope of coverage and offers numerous benefits to the employees working in your company. Buying this group health coverage will help you comply with the new mandate as well as safeguard your employees’ financial future.

Final Words

As employees work towards shaping the future of your company, they deserve the protection from their employers that will ensure support and security! Group health insurance plan is an important step towards employee and company welfare.

FAQS

What does group health coverage usually include?

A typical group health coverage includes hospitalisation, outpatient care, preventative care, vision care, dental care, prescriptions, etc. The coverage will be mentioned in your policy,

How to determine a group health policy’s premium?

The policy premium for group health insurance is determined with the help of factors like the size of the group, demographics, coverage options, add-ons, location, nature of the job, etc.

Does group health policy offer pre-existing illness coverage?

If the group health policy offered by the employer does not cover pre-existing illness and the policy has the option of customisation from the employee’s side, this additional coverage can be added. Additional coverage may be opted for at an added cost. Applicable waiting periods may also be served.

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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