The Benefits of Group Health Insurance Plans in India

Employee benefits are a win-win for companies. They are a way of rewarding employees and increasing their productivity while saving expenses and improving health outcomes. Employee benefits range from medical insurance coverage to company-funded retirement plans. But when it comes to health insurance coverage, many companies shy away from group insurance plans.

However, group health insurance plans have many benefits that individual health insurance plans do not. In this blog post, we will discuss one of the most important benefits of group health insurance plans – employee medical benefits coverage – and how to start implementing group medical coverage in your organization.

Want a Healthy Workforce? Employee Health Insurance can Help!

Employee health insurance is a valuable benefit an employer can provide its employees. Health insurance ensures employees are financially secure in case of serious illnesses or health conditions. Additionally, group health insurance policies are usually offered at lower prices and with more excellent coverage. This benefits employees as they no longer have to worry about medical expenses. While employees enjoy health insurance benefits, employers can also save money on medical costs for their employees. Employers may be eligible for tax benefits if they provide health insurance to their employees. Finally, employee health insurance creates a sense of inclusion and consideration in the workplace, improving morale and productivity. Overall, employee health insurance is a vital benefit that both employers and employees should consider in today’s world.

What is Group Medical Cover (GMC)?

– Group medical cover (GMC) is a policy that covers a group of people, such as members of a professional association, society, or employees of a company.

– In GMC, group insurance companies offer health insurance coverage to individuals and families enrolled with them. This insurance plan also covers hospitalization and maternity expenses for women insured under the program. These benefits are provided on a pre-defined basis and cannot be extended on an individual basis without the insurance company’s consent.

– The amount allocated by an insurer for the health expenses of an individual member is determinable based on health status, family income, age, and other factors.

– As per IRDAI guidelines, the regulatory authority must approve group medical plans before issuing them. These plans are also subjected to audits for health coverage and claims settlement.

A Group can be Majorly Divided into Two:

A group health insurance plan offers several benefits to insured members. These benefits can include coverage for hospitalization, surgeries, and maternity care. The cost of group health insurance plans can be significantly reduced by spreading the risk among many members. With a group health insurance policy, businesses can insure their employees against medical expenses without worrying about personal expenses. Additionally, employees can stay focused on their job without being weighed down with medical costs.

Group health insurance plans are an essential part of the healthcare landscape in India. Businesses that want to protect their employees’ health should consider getting a group health insurance policy for their employees.

Non-employer-employee Groups

Non-employer-employee groups may include members of registered welfare associations, companies/banks, and customers of a particular business where insurance is offered as an add-on benefit. Group health plans are employer- or group-sponsored plans that provide health coverage for employees and their family members. A single company, organization, or group of companies typically sponsors these plans. Group health insurance is a policy provided to employees or members working for a company or an organization. It provides coverage for expenses related to the medical treatment of employees and family members.

Group health insurance is an umbrella policy that covers group health expenses for employees and their families. It usually covers medical costs, hospitalization expenses, and prescription drugs. This coverage can be costly, so it is essential to compare different insurance plans (s) before deciding which one to choose.

Employer-employee Groups

Group health insurance plans cover employees and their family members under a single policy. The plan may cover medical expenses incurred by the employee and family members, such as medical expenses for hospitalization, medical costs for birth, maternity, etc.

Offering group health insurance benefits to employees can allow them to achieve financial security in medical uncertainty. This is especially true if family members are also insured under the policy. By covering family members, group health insurance plans help reduce health care costs by spreading the risk of expenses among family members.

These benefits make group health insurance a valuable policy for employers who want to provide their employees with benefits beyond basic insurance coverage.

How to Choose the Best Health Insurance for Your Employees?

The best health insurance plan for employees should be an individual health insurance plan with add-ons like a health insurance plan for family policy, hospitalization policy, medical expenses policy etc. This ensures coverage of expenses such as medical expenses, hospitalization expenses and medical expenses while travelling abroad. It also provides tax benefits under the Income-tax Act. Hence, employees can plan better overall health insurance coverage with individual health insurance plans.

The waiting period for pre-existing diseases to be covered depends on employees’ health insurance plans. If a hospitalization policy is selected, it will cover expenses incurred during a hospital stay for a pre-existing medical condition. However, this waiting period varies from insurance plan to insurance plan. It could be anywhere from a few days to a few months. Thus, it is essential to understand the team’s needs and preferences before selecting the right group health insurance plan.


Group medical insurance plans can help employees cover a variety of health-related expenses. If employees of your company plan to cover medical costs with a group health plan, they should compare programs and choose the one that best suits their individual needs. To learn more, read this blog. It further talks about how group medical insurance plans work and the benefits of group health insurance plans.

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