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Understanding the Types of Group Health Insurance

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Health Insurance

Every employer must provide health insurance to employees. Employee group health insurance coverage not only provides financial support to workers during emergencies but also fulfills the employer’s ethical responsibility. Moreover, by providing group health insurance to employees, organisations also comply with legal requirements. 

However, several types of employee health insurance are available on the market and selecting the right one can be tricky. However, if employers understand each of these policies, they can make a conscious decision to choose the right group health insurance.    

What is Group Health Insurance?

Group health insurance is a policy that provides coverage to a specific group of people, typically employees of an organisation or association members. It provides financial assistance to employees, association members and welfare groups during any medical emergency. 

This health insurance is affordable and provides comprehensive protection to employees of various organisations. Moreover, employers can also choose the specific type of group health insurance best suited for their company. 

Types of Group Health Insurance

Group Health Insurance or Mediclaim Cover

Group health insurance or mediclaim cover is the healthcare policy for the employees. It is one of the most common types of group insurance provided by employers to employees. The insurance extends its protection not only to employees but also to their dependent family members. 

Features of Group Health Insurance

  • Covers accidental injuries
  • Provides hospitalisation expenses
  • Insurance provides financial assistance in case of loss of pay
  • The insured employee gets a fixed percentage of the sum insured in case of total temporary disability. 
  • Insurance provides 100% of the sum insured in the event of loss of limbs. 
  • In the event of the insured employee’s death, the nominee will receive the sum insured value. 

Group Personal Accident Policy

This group health insurance works similarly to individual personal accident insurance. The employer provides this insurance to their employees to protect against accidental injuries by bearing the financial strain. It also covers accidental injuries that may lead to hospitalisation, disability or death. 

Features of Group Personal Accident Policy

  • Covers all accidental injuries
  • The policy provides coverage for hospitalisation expenses, even for bone fractures.
  • The insured employee gets a specific sum insured in case of total temporary disablement.
  • The employee will get 50% of the insured value in the event of partial disability.
  • In case of loss of a vital limb, the insured employee will be paid 100% of the sum insured.
  • In the event of the insured employee’s death, the nominee will receive the entire insured sum. 

Group Employee Deposit Linked Insurance (EDLI)

Group employee deposit-linked insurance, or EDLI, is part of the employee provident fund. The benefits of this group health insurance are determined based on the employees’ contribution to their EPF. As per the Employee Provident Fund Organisation, employees are offered benefits of up to 7 lakhs in the event of permanent disability or death. 

Features of Group Employee Deposit-Linked Insurance

  • EDLI is universally applicable, regardless of an employee’s working hours or location of work. 
  • The policy allows the transfer of benefits in case of a change of employment. 

Group Pension or Superannuation Insurance

This type of group health insurance is curated to cater to employees’ retirement needs. The policy is usually provided by the employer and is considered a great alternative to popular retirement plans like the National Pension Scheme (NPS) and the Employee Provident Fund (EPF). 

Features of Group Pension Insurance

  • Provides financial security after retirement
  • Allows the employees to transfer the benefits when they leave the organisation
  • Employees can build a regular monthly income post-retirement with multiple annuity options.
  • Allows tax benefits under Section 80C for individual contributions

Workmen or Employee Compensation Insurance 

Workers’ compensation insurance is a type of policy provided by employers to their employees under the Employee Compensation Act. It provides coverage for employers’ statutory liabilities in the event of an employee’s accident or death during employment. 

  • Features of Workmen Compensation Insurance
  • Provides financial support in case of an accident during employment
  • Covers the lost income during injury or disability 

Group Travel Insurance

This group insurance is a mix of health insurance, liability insurance and accident insurance. Group travel insurance provides coverage to travellers’ groups against medical emergencies, accidents, lost luggage or third-party liabilities.

 It should be noted that group travel insurance is not limited to a group of employees travelling together. Employers can also get this policy for employees who have to travel frequently. That is why the premium of this insurance is calculated based on the number of trips in a year. 

Features of Group Travel Insurance

  • Provides coverage for employees’ travel within the policy duration
  • Does not require a minimum number of employees to buy the policy
  • Allows single window management and trouble-free management of employees’ travel emergencies

Public Liability Insurance

Also known as third-party liability, this group health insurance is purchased by organisations dealing with clients, employees, agents, or the public. It covers the third-party liabilities that arise due to third-party person or property loss. 

Features of Public Liability Insurance

  • Provides coverage for liabilities incurred due to accidents, injury or property damage on your business premises or cases related to your business
  • Coverage is provided for contractual liability and the tenant’s liability
  • Legal liabilities coverage

Summing Up

Public liability insurance, EDLI, group travel insurance, WC insurance, etc., all these group health insurance policies have benefits. However, employers need to choose which insurance is best for their employees’ needs and fits their budget. Knowing the types of group insurance and their features can make the decision-making process easier without compromising employee safety.

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