All About Corporate Health Insurance When Changing Jobs

Corporate health insurance is health insurance coverage for employees purchased by an employer. The coverage covers the medical expenses of the employees and their family members listed under the plan.
But what happens to employees' group health insurance coverage after resignation in India? Generally, group health insurance coverage ends on the last working day of a job.

As per the IRDAI guidelines, employees have the option to convert group health insurance plans to individual health insurance policies to get continuous coverage. However, the terms of an insurance coverage are decided by the insurance company. It is important to note that the conversion option is not available with all insurance providers.

Hence, before converting to a group health insurance coverage, it is best to check with the insurance provider beforehand.

Also Read: Employee Health Insurance: Benefits & Coverages

When you switch your job or resign from your job, it ends your group mediclaim policy coverage. Knowing how group health insurance coverage works when you resign from your job will help you make informed decisions. Below are some of the key points to know when you switch your jobs.

Loss of Coverage

Upon leaving or resigning from a job, it is crucial to note that group health insurance coverage from the employer is lost. The coverage is tied to the employer and ends on the last work day for employees.

Portability

In India, employees have the flexibility to convert or port their group health insurance into individual health insurance plans within 30 days of leaving their job with the same insurance company, providing a reassuring safety net during job transitions.

However, as per the IRDAI guidelines, employees should be covered under a group health insurance policy for at least 12 months continuously and should not have made any claims during that period.

Waiting Periods

Suppose employees have decided to port group medical insurance coverage to the individual health insurance policy. In that case, they will be subject to the waiting period based on the employee's medical history or pre-existing condition.

Premium and Coverage

After moving to an individual health insurance plan, employees are requested to pay a premium based on their age, sum insured and various other factors. The premium may be different from the premium employees paid for group health insurance.

Pre-Existing Condition

If an employee has a pre-existing medical condition, such as chronic illness, that may have existed before joining a corporate health insurance company, they might face challenges in getting an individual health insurance policy. That is why it is crucial to assess the impact on medical coverage while switching jobs, especially for those with chronic illnesses.

Also Read: Benefits of Group Health Insurance Policy for Employees

When employees switch jobs upon leaving the current organisation, they need to take certain steps.

Step 1: Review Your Current Policy:

Before leaving their current jobs, the first proactive step for employees is to review the terms and conditions of their existing policy. This includes understanding the end date for group health insurance coverage and how to extend it.

Step 2: Inquire About Portability:

The next step employees need to take is to ensure that the insurance provider that offers group health insurance coverage has portability options. This means that the insurance company allows employees to have health coverage under different plans.

Step 3: Explore Temporary Health Coverage:

Another crucial step employees need to make sure of is to get temporary health coverage. Suppose an employee has already joined a new company, but there is a gap between old job coverage ending and new job coverage beginning. In that case, they should consider purchasing a short-term health insurance plan.

Step 4: Understand New Health Insurance Coverage:

Once an employee starts a new job, they should thoroughly review their new health insurance policy. The employees should familiarise themselves with the coverage details, waiting periods, network hospitals and more.

Step 5: Keep Documentation:

Lastly, employees need to maintain all documentation related to the health insurance plan. This includes policy documents, the claim process, the claim form and more.

Step 1: Inform the Insurance Provider

The first ideal step for employees with corporate health insurance who are changing jobs is to inform insurance companies about the change. The employee should inform the insurance provider well in advance, at least 30-45 days before the last working day.

Step 2: Choose a Health Plan

When you inform an insurance company about your wish to move to other health insurance plans, if they allow portability, they will offer you a different health insurance plan based on your health requirements. Choose a plan based on your needs and depending on the inclusion, exclusion and more.

Step 3: Submit Documents

After selecting a health insurance plan, fill out the insurance provider's portability form. Employees also need to submit various other documents with the form, such as existing policy documents, medical history, claim history, etc.

Step 4: Pay the Health Insurance Premium

The last step is to pay the health insurance plan premium using the preferred method, such as credit card, debit card, etc. Once the payment is processed by the insurance company, the new health insurance policy will be issued in the employee's name.

Also Read: How to Select the Right Group Medical Coverage?

Let us understand corporate health insurance when changing jobs, for example. Rahul, who works for ABC company, has a corporate health insurance plan. He decided to change his job after working for two years in a company.

Since he was aware of the portability norms, he enquired with his employer. The employer was okay with the portability options. Rahul reached out to the insurance provider with which he has group health insurance coverage and discussed switching to other health plans as he is switching jobs.

The insurance company shared the migration process with Rahul and also finalised the terms and conditions of the new health insurance plan. Once everything was finalised, Rahul paid the premium. Once the payment is processed, the new health insurance plan will be issued against Rahul.

Understanding all about the intricacies of group health insurance coverage after resignation in India is crucial for employees. While group health insurance is typically tied to employment, employees should be aware of their options post-resignation, such as converting the group plan to an individual policy.

Timely action is crucial to ensure uninterrupted coverage and avoid potential gaps in protection. Employees should carefully review the terms and conditions of their employer's insurance policy, seek advice on available options and make informed decisions about securing continued health coverage for themselves and their families.

TATA AIG offers various SME insurance plans like group mediclaim policies that are customised based on your unique workforce needs. With group health insurance, employers can offer comprehensive medical coverage to their employees and their families. Secure your workforce now with the TATA AIG group health insurance plan.

Can I claim group health insurance during the notice period?

Yes, you can typically claim group health insurance during your notice period, as the coverage remains active until your official resignation date. However, it is important to check with your employer or HR for specific terms, as some companies may have restrictions or require certain conditions to be met during the notice period.

Can my corporate health insurance cover hospitalisation expenses?

Yes, corporate health insurance covers hospitalisation expenses, including surgery, doctor fees, diagnostic tests and medicines, depending on the policy's terms and conditions. However, coverage may vary based on the plan, so it is important to check the specifics with your employer or the insurance provider.

Can I shift my health insurance to another company?

Yes, you can shift your health insurance to another company in India. The Insurance Regulatory and Development Authority of India or IRDAI allows you to transfer your health insurance plan from one insurance provider to another without losing the benefits you have accumulated, such as waiting periods or no-claim bonuses.