Benefits of Group Health Insurance Policy for Employees

  • Author :
  • TATA AIG Team
  • Published on :
  • 15/07/2022

With rising health costs, individuals resort to a health insurance plan to cover the expenses of a medical emergency. Many of you might not consider buying an individual health insurance plan. But with easy procurement and claim processes, group health insurance plans at the workplace might change your views. The employee benefit plan has several benefits that you can’t miss. Find out what a group health insurance plan is and its advantages.

What is Group Health Insurance?

As the name suggests, a group health insurance plan is a policy that covers all employees under a single plan. The employer of the organisation has the responsibility of providing the benefit. The plan is cost-effective as the risk spreads over many individuals. The insurance plan is also known as the group Mediclaim insurance policy for employees. The deducted amount from the CTC of the employees acts as the premium. But some organisations provide group health insurance to their employees free of cost.

A group medical insurance plan is mandated by the Ministry of Home Affairs. Every organisation, private or government, has to offer health insurance benefits to its employees. But, the coverage and network of hospitals may vary.

A group Mediclaim policy may cover expenses related to:

  • Hospitalisation in case of an accident

The plan covers pre-hospitalisation and post-hospitalisation expenses in case you or your loved one meets with an accident. The expenses are related to ambulance fares, diagnosis, room rent, etc.

  • Hospitalisation due to illness

A group health insurance covers you and your family member in case of illness. The insurance company pays for the treatment and hospitalisation costs.

  • Psychiatric illness

A group health insurance also provides support in case of a mental disorder. After all, mental well-being is as essential as physical well-being.

  • Critical illness

Any critical illness might take a toll on your pockets. A group health insurance plan gives you the benefit of critical illness insurance. The plan ensures you or your loved one gets the best healthcare in case of a critical illness diagnosis.

  • Maternity benefit and newborn baby cover

A group insurance plan may provide you with maternity benefits. The policy ensures that you or your spouse deliver the baby without worrying about costs. The newborn is also covered under the plan for the first 90 days. Apart from this, it also covers infertility treatments and other kinds of expenses.

  • Annual health check-ups

The costs for any medical health check-up that you or your loved one undergoes are reimbursed under group health insurance.

Group Health Insurance Benefits

A group mediclaim insurance policy for employees has several benefits over an individual health insurance plan. They are summed up below:

  • Cost-effective

The premium and coverage of group health insurance are shared among all the employees. It leads to lower premiums making the plan more cost-effective than an individual or family floater plan.

  • Protection of your loved ones

One of the best advantages of a group Mediclaim insurance plan is that it provides health protection to your loved ones too. Instead of buying different health insurance plans for every family member, you can include them under a group plan. Usually, a maximum of five dependents are covered without any extra premium.

  • Provide flexibility

A group health insurance is quite flexible in terms of additional benefits and adding more members. The plan also covers pre-existing illnesses and OPD expenses. You can also get other benefits like annual health check-ups and wellness sessions.

  • Hassle-free claim process

By making a call to the HR team, you can ensure the insurance company settles all the hospital claims. A group health insurance policy helps you access a cashless hospitalisation facility during a health emergency. This saves time and effort making the process hassle-free.

  • Helps in motivation

A group health insurance plan makes the employees feel appreciated and valued. They feel motivated, which leads to increased productivity and job satisfaction.

  • No waiting period for pre-existing diseases

Before filing a claim in case of pre-existing diseases like diabetes, hypertension, and high BP, individual health plans involve a waiting period. The disadvantage is overcome with a group health insurance plan. You can file a claim from day one of your group health policy without a waiting period.

  • No need for a health check-up to get the benefit

Under a regular health insurance policy, an individual needs to undergo a health check-up before the policy is issued. But, health check-ups of employees are not done under a group insurance policy.

Is a Group Health Insurance Plan Enough?

A group Mediclaim policy benefits are well known to the employees. It has enormous advantages for an employer too. With a group health insurance plan in place, the employer enjoys tax benefits and also retains talent in the company. The employee feels motivated and works more dedicatedly for the organisation. But a group health insurance plan has certain drawbacks. In most cases, a group health insurance plan stands terminated if you leave the organisation or reach retirement. So, you should buy a regular health insurance policy to ensure financial security in times of health emergency.


COVID-19 has helped realise the importance of a good health insurance policy. Due to the increased cost of medical care, many people lost their loved ones due to financial constraints. Group mediclaim policy for employees definitely has its benefits, but having a regular health insurance plan alongside ensures that you do not lose a loved one because of a lack of funds. With frequent COVID-19 waves, you can also buy COVID-19 insurance. It helps cover the hospitalisation expenses incurred in the treatment of the deadly infection.

Choosing a suitable health insurance plan is essential to meet unexpected health costs. At Tata AIG, you can find several health insurance plans, including group health plans to ensure your well-being and your loved ones’. While purchasing a health insurance plan, we suggest you opt for critical illness insurance cover. So, buy the right health insurance at the earliest.

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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