Corporate Health Insurance –Find Out If It is Enough

Posted on: Nov 1, 2022 | | Written by:

Corporate Health Insurance –Find Out If It is Enough

Published on October 31, 2022. EST READ TIME: 3 minutes

You would have often heard from salaried employees that they don’t need to buy separate health insurance policiesbecause their company already provides them with one. In fact, a good health cover is one of the biggest perks that help people decide on which job offer to take. But is the coverage enough? That’s the question people ask when a medical emergency arises. A little too late! While providing medical insurance to their employees is a mark of a good organisation, this ‘one plan fits all’ approach may not be the best solution for individuals. Let’s learn more about corporate health insurance and try to debunk some myths.

Myths & Facts about Corporate Health Insurance

• Myth:

Corporate or group health insurance is enough

• Fact:

You should not rely only on corporate health insurance because these group health plans taken by employers have a limited sum insured. If you look at medical inflation, the sum insured may not be enough to meet the expenses in case of a serious illness. Instead of paying the balance amount from your own pocket, it’s better to have a personal insurance cover.

• Myth:

All hospital expenses will get reimbursed

• Fact:

Group medical insurance policies come with room rent capping, co-payment clause, etc. The room rent is pre-defined in a corporate plan and if your room rent exceeds the capped amount, you need to bear the difference in cost. Similarly, in co-pay clause, the insurance company will pay a percentage of the claim amount and the remaining will need to be paid by you.

• Myth:

In corporate health insurance, all family members are covered

• Fact:

Not really. Most of the corporate policies cover only the employee and immediate family members. If your parents are dependent on you, you need to secure them with a separate health insurance or add them in the family floater.

• Myth:

Claiming is difficult

• Fact:

Most insurance providers have gone digital, which means buying/renewing a policy, or claiming has become way easier and seamless. The claims are settled within minutes. If the employee gets admitted to a network hospital, he can avail cashless facility which is quick and hassle free. Even if he goes for reimbursement, the claims are quickly settled after he submits all the necessary documents and bills.

• Myth:

Start-ups and SMEs cannot avail corporate health insurance

• Fact:

All organisations, whether big or small, can buy corporate health insurance for their employees. However, very few SME staff are covered because of the assumption that group health insurance can only be availed by large companies. A small company with as few as six-seven employees can enjoy the same benefits as their counterparts in big companies.

• Myth:

Corporate medical insurance is cheap

• Fact:

Compared to individual health insurance plans, corporate health plans are affordable but not cheap. It is affordable to enable smaller companies to invest in good health insurance plans for their employees based on the company’s financial condition.

• Myth:

Policy is valid as long as you pay the premium

• Fact:

You will be covered by corporate health insurance policiesas long as you are employed with the organisation. The moment you leave the organisation, your policy will get terminated. If you don’t have a personal health insurance, you will be out of insurance cover till you get employed somewhere else.

• Myth:

It doesn’t cover a lot of diseases

• Fact:

One of the biggest advantages of corporate health plan is that it covers pre-existing medical conditions as well, without any waiting period. Many insurers have a waiting period of 2-4 years for pre-existing diseases; any claims raised during this period will not be settled. Also, the policyholders don’t have to undergo any medical check-up as is the case with individual health insurance.

• Myth:

Premium is high in corporate health plan

• Fact:

The employer takes care of the premium, so you don’t need to worry. But if you want to enhance the coverage by increasing the sum insured or topping it up with one more health plan, you need to pay the excess amount.

Conclusion

There are many myths and misconceptions surroundingcorporate medical insurance. If you have any doubts or face any confusion, it’s advisable to check with your employer or insurance company and get everything resolved. Corporate health insurance comes with many benefits such as no waiting periods, no medical screening, no or low premium but it may not be enough to meet your medical needs. Having an individual health plan can give you complete protection.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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