Group Health Insurance - Your Ultimate Guide to Employee Benefits

Picking group mediclaim policy for your team? Our guide can help you understand group medical insurance to choose the right plan for your team.
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Table of contents

Why is group health insurance necessary?
What is group health insurance?
Why buy a group health insurance policy?
Who should buy a group health insurance
Advantages of a group health insurance policy
Difference between group and individual health insurance
Why should you buy group health insurance with Plum?
Things to know before buying a group health insurance policy
Frequently asked questions

Why is group health insurance necessary?

Think about the times you have heard of someone dealing with a health emergency. These situations rip apart our financial savings and cause emotional stress. Recent global health crises like COVID-19 have made the importance of having health insurance coverage even more evident.
Despite such occurrences, health cover penetration in India is poor. Almost 30% of the Indian population has no health scheme. High premiums and complex terms & conditions are the top reasons for this trend.
This is why opting for group health insurance at employee-first companies is a no-brainer. Putting the well-being of your employees at par with organisational goals can create healthier and more productive teams. It gives your leaders an opportunity to lead by example. And by valuing your team’s health, you incentivise them to care about their well-being and bring their best selves to work. 

A bonus benefit of group health insurance: your organisation just took another leap at becoming people-centric and empathetic.

What is group health insurance?

Group health insurance is an umbrella policy offered to a group of individuals.
The most common example is when an employer promotes a corporate insurance plan to their employees, who can roll it out to their spouse, children, parents or parents-in-law. Employer-employee insurance benefits are comprehensive and affordable, depending on the plan your company opts for.
For instance, all your pre-existing conditions are covered from day one without any waiting periods. This extends to common illnesses, maternity benefits, daycare treatments and personal accidents, to name a few. Group insurance is unlike an individual health policy, where the waiting periods cannot be waived, and the premiums are worth a king’s ransom even if they could be. This makes group health insurance a necessity and not just a nice-to-have benefit.

Why buy a group health insurance policy?

Here’s the problem
You already know that building a talented team is a herculean task. But, retaining great talent and keeping them motivated is a hamster-on-wheel assignment. Losing even a single member after all your hard work is a kick in the gut.
It’s more difficult when you know that you could’ve addressed their concerns in hindsight. These include things that improve employee morale and organisational culture, like providing adequate paid time off, flexible work-life balance and a comprehensive group health insurance plan.
Here’s how to fix it
Today’s workplaces are synonymous with human-centric policies. When potential hires imagine their ideal work culture, it involves organisations building a culture of care, inclusivity and innovation. This fosters a team of happy individuals who are not only engaged at work but are also bagging the best outcomes.
Choosing group medical insurance is the first step to showing your employees that you care. The ripple effect is that employees feel happy, and retention is high as they feel prepared for unforeseen events. This also makes them more productive at work, nudging them to build a healthy lifestyle resulting in lower sick leaves.

Who should buy a group health insurance policy?

Group insurance for teams as small as 2
Plum is tailored for young startups from the get-go. We believe there’s no “right team size” for picking a group health insurance policy. The sooner, the better.
Group health insurance for SMBs
Scale your business by offering the best group health insurance policy. Group health insurance policy for employees is a holistic perk that places your workforce’s health in the front and centre, increasing employee satisfaction.
Large organisations
With big business comes big responsibility. Organisational culture and employee benefits play a massive role in talent retention. Prioritise your employees’ needs with corporate health insurance as the onus is on you to take care of the people who look after your business.

Advantages of a group health insurance policy

For employers:
Attract and retain top talent
Employees are less likely to leave the organisation when they are happy, and the work culture is focused on people-centric policies. Offering employee health insurance as a benefit shows your employees that you care for them and gives them a positive outlook on your organisation.
Value for money and tax benefits
A group health insurance allows you to provide coverage to the employee and their family at a much lower cost than an individual health plan. Plus, as a co-founder, you can avail tax deductions for offering group medical insurance to your employees.
Boost focus and job satisfaction
Offering your team great benefits and perks can be a great motivator to make them happier at work, thus, improving their job satisfaction and productivity.
For employees:
Smooth and easy claims
Employees don’t have to bear tedious settlements. With a group health insurance policy, they can simply route their hospital bills through the employer for easy reimbursement.
Family coverage at zero cost
Employees can add their family members, including their parents, depending on the group health insurance plan their organisation selects. Employees can avail these benefits at zero cost, boosting company goodwill.
Preventive health care
Most modern insurers focus on wellness initiatives apart from nudging for regular health check-ups. This could range anywhere from educating employees on different aspects of health to providing them with doctor consultations or exclusive discounts on medicines, health check-ups, gym memberships and more.

How is group medical insurance different from individual health cover?

Premium cost
Pre-existing diseases
Policy structuring
Waiting periods
Added benefits
Group medical insurance
Recommended
The premiums are lower for group medical health insurance plan, and the employees bear no out-of-pocket expenses.
A group health insurance plan can cover people with pre-existing diseases.
The company taking the cover will structure a standard policy for all the employees.
Group health insurance plans can be claimed from day one.
The company chooses the benefits. Certain benefits, such as maternity and pre-existing diseases, are available only on a group insurance policy.
Individual healthcare plan
Relatively higher premiums since only one individual and their dependents are covered. The premiums must also be paid periodically.
Pre-existing diseases have a waiting period of 1-4 years (depending on the disease) under a personal health insurance plan.
You can structure a policy according to your preferences with personal health insurance.
There is usually a 30-day initial waiting period associated with personal insurance plans.
With personal health insurance, you can choose the benefits best suited for you and your dependents.
Group
Retail
Premium cost
Pre-existing diseases
Policy structuring
Waiting periods
Added benefits
Group insurance
Recommended
Lower premiums since the risk is spread across the group.
A group health insurance plan can cover people with pre-existing diseases.
Here, the company taking the cover will structure a common policy for all the employees.
Group health insurance plans can be claimed from day 1.
Here, the benefits are chosen by the company. However, certain benefits such as maternity cover, pre-existing diseases are exclusively available only on a group health insurance policy.
Premium cost
Pre-existing diseases
Policy structuring
Waiting periods
Added benefits
Retail insurance
Relatively higher premiums since only one individual and their dependents are covered. This means the risk is high.
You will not be able to purchase personal health insurance at an affordable price if you have pre-existing diseases.
With personal health insurance, you can structure a policy according to your preferences.
There is usually a 30 day waiting period associated with personal insurance plans
With personal health insurance, you can choose the benefits best suited for you and your dependants.

Features of group health insurance plans

Cashless process
Cashless process enables the insured to get treated at any network hospital without any upfront payment. This helps your employees get treated for ailments without any financial burden.
Pre and post-hospitalisation
Many medical expenses could be incurred before hospitalisation and even post-discharge. All these expenses are also covered under a group health insurance plan.
Added health benefits
Health benefits are preventive measures that can be opted for by an organisation for its employees. These could range from OPD consultations, routine health check-ups and mental wellness support. This encourages employees to take better care of themselves proactively.
Super top-up
Offer your employees an additional layer of security on top of their existing group health insurance policy. A super top-up is more cost-effective than paying costlier premiums to increase health coverage.
Comprehensive coverage
Group health insurance plans can be easily enhanced through additional benefits. You can add benefits such as maternity, pre-existing disease, and accidental cover to the base polic
No pre-medical screening
Personal health insurance requires you to undergo a medical examination to determine your health status. This information is helpful for insurers to determine your premium and waiting period for specific diseases. However, this step is forgone under group mediclaim cover as the risk is spread across the group, resulting in lower premiums.

Why should you buy group health insurance with Plum?

Easily manage your group health benefits
You can add and remove employees from your group health policy at any time, invite an employee to add their own details, and modify employee details at your convinience.
Easy employee experience for accessing their group health insurance
Insurance is no longer a hassle. Easily access your employee dashboard at any time. From the Plum employee dashboard, you can check your policy details, start a claim, and check the status of your claims.
India's quickest claims process
Traditionally, claiming your insurance plan has always been a tedious process. With Plum, your employees can claim their group health insurance cover from WhatsApp.
Your responsibility to care for your team increases when your team grows. This is when you start looking for a group health insurance plan. Instead, you get stuck figuring out the right corporate health insurance policy for your team and then take a few weeks to understand the pricing. 
Then comes the nerve-wracking negotiation before you make the final payment, and oh — lastly, a two-week waiting period before you can roll out the policy to your team members. At the very least, you will catch your patience flying out the window. At worst, you won't even get a policy if you’re a smaller team (we’re speaking of less than ten members).
Here’s where Plum enters the picture
At Plum, we understand how overwhelming the process can be for founders and HRs. Our human-led digital experience enables organisations to pick a tailored plan to suit their needs. This includes constructing the right group health policy, choosing a top insurer, selecting the right health benefits and even negotiating with the insurer on your behalf.
This support extends once the policy is placed as well – with our admin dashboard allowing you to enrol employees efficiently and our claims team helping them navigate any medical emergencies.
One-stop admin dashboard
Say goodbye to employee management on spreadsheets & emails
With our admin dashboard, you can add and remove employees from your group health policy at any time, invite an employee to add their details and modify them at your convenience. No frills, just easy functionality. Can’t beat that.
Simplified employee experience
All your information in one profile
Insurance is no longer a hassle. Access your Plum employee dashboard on the go. Know your group health insurance cover and health benefits. Learn what’s covered and uncovered in your policy. Start a claim, and check the status of your claims with a click.
Make claims seamless
Say hello to Plum’s WhatsApp integration, your new buddy for everything insurance-related
With Plum, your employees can file, track and manage claims from WhatsApp. You can also check your policy details and download your health card, all from the comfort of WhatsApp.

Things to know before buying an online group health insurance plan

Family coverage
Group health insurance allows you to cover your employees and their family members. Understanding your workforce dynamics and budget helps you pick the right kind of cover for your team members.
Sum insured (SI)
This is the monetary cap the insurer can pay for a particular year if you’re hospitalised. Typically, you can choose SI from 50K to 10L. But, selecting the suitable SI depends on your team’s average salary and whether or not you opt for family coverage. High salaries and family coverage require high SI.
Claims experience and settlement ratio
The crux of a group health insurance plan is its feasibility. Always check the insurer’s claims experience, process and support. Verify the claim settlement ratio. Higher settlement ratios are always better!
Added benefits
Pick additional features that complement your group health insurance plan. For example, maternity benefits are suitable for employees planning to start a family.
Policy waiting period
Avoid any waiting periods on your insurance plans. Always select a plan which provides insurance cover from day one. This ensures that all your new and old employees are covered as soon as they join your organisation.
Customisable plans
Always go for a plan that offers complete and seamless customisation. This will help you manage new/old employees and their dependants easily.
Note: Employees can only avail of a cashless claim at one of the insurer's network hospitals. It is crucial to ensure that the insurer has network hospitals across the country.

Frequently asked 
questions

Is COVID-19/Coronavirus covered in a group health insurance policy?

Yes. All group health insurance policies cover COVID-19 and related illnesses.

Is it mandatory to provide health insurance to employees in India?

Yes. As part of order No-40–3/2020-DM-I (A), the government of India has declared that all employers must provide corporate medical insurance to employees.

How many employees are required for a group health insurance policy?

Teams as small as seven can be covered using a group health insurance policy. For example, you can also take a group health insurance policy if you're in a five-member team (and two spouses).

What is the benefit of group medical insurance for employees?

Buying a comprehensive group cover scheme for young startups and small companies is a great way for founders to retain and attract good talent. Employees often prefer organisations with good health benefits and wellness programs.

How does group health insurance policy work?

An employer purchases a group healthcare coverage plan for their respective employees based on the number of workers. The employer entirely bears the cost of group healthcare. In return, the employees can avail medical insurance as per the sum insured.

Is group health insurance cheaper than individual health insurance?

Yes. A group health insurance policy is five to ten times cheaper than an individual policy.

Are group health insurance premiums tax-deductible?

Yes, you can avail of certain tax benefits through group health insurance.

How to buy group health insurance as an individual person?

A group health insurance can only cover individuals who belong to the same organisation. You cannot buy group health insurance as an individual.

Who is eligible for group health insurance?

Any company registered with the MCA and has greater than seven lives (including dependents) qualifies to buy a group health insurance policy.

How much does group health insurance cost?

Group health insurance costs vary based on the number of employees, sum insured, and benefits opted for. Get a group health insurance estimate using our premium calculator.

How many people can be in a group health insurance?

The minimum number of people that can be covered in a group health insurance policy is seven. There is no such fixed upper limit on the total number of employees covered.

Can small businesses take employee medical insurance?

Yes. Companies of any size can take employee medical insurance. You can generate an estimate for your company using our premium calculator.

How to check room rent limits in group mediclaim insurance for employees?

Every group cover comes with a specific room rent limit or no room rent limit. You can check the policy document. The upper limit is around 1% of the sum insured.

How much is the premium for group health insurance?

The cost of the premium amount depends on the number of employees and their family members that you want to cover.

Are health check-ups included in group mediclaim policy?

Most of the group plans provide annual health check-ups for free. This depends on your employer's type of group plan and benefits.

Reviews and Testimonials

(4.5/5)
Gautham Prakash

One of the best in the industry. The entire onboarding process was seamless and quick. Good customer service team.

Madu Patil

Really appreciate the effort of the plum team members. The product demo was really good and self-explanatory.

Ankit Agarwal

Purchased a comprehensive group medical cover for my employees. The plum app experience is fast and time-saving.

Bhanu Teja

Plum offers the best group health insurance quotes in the industry for corporates of all sizes and scales. Great work!

Rajesh Raje

Great support from customer success. The team was highly responsive and resolved all of our claim queries point by point.

Vaibhav Widhwani

The cool part about Plum is its state-of-the-art employer-employee dashboard. As an admin of a company, it is the best thing!

Mohan Kapoor

Buying a group health insurance plan has never been better. Kudos to team Plum for such a good claims experience.

Jasspreet Singh

With Plum's WhatsApp claims service; I was able to download my health card within seconds. Good and quick process here.

Jassi Anand Kaur

I got the best quote and suitable premium for the complete batch (GMC + GPA + GTL + Covid 19 cover + Top-up). Really happy.

Dhruv Mishra

Apart from the group mediclaim plan, my employees and their dependents benefited from covid-19 vaccination by Plum.

Veerta Mishra

Along with group insurance cover, we also subscribed to the Plum Wellness program. Employee motivation at its peak.

Aaakash Pawar

High coverage at the best premium rates. Plum helped me purchase the best insurance plan for my SME. Thanks a lot!

Ravi Sahitya

I'm entirely convinced and happy with the services provided by Plum Insurance. Truly digital experience and onboarding.

Raju Krishnan

I bought the entire mediclaim policy online. I simply filled in all the details and got assisted by the sales team immediately.

Raje Birje

Gone are the days when you have to wait in line at the bank to book a group plan. With Plum Insurance, just do it online. Thanks!

Neeta Chakraborty

Our employees got a good number of benefits along with a medical cover. Plum doctor's consultations are really good.

Komal Pandey

I never thought that I would be able to cover my small group of employees. Thanks to Plum Insurance for the GHI plan.

Disha Seth

With GHI cover, all of my employees and their family members got the proper covid-19 treatment possible. Thanks!

Jason D'Souza

The plans offered by Plum is good and cover most of the pre-existing diseases from day one. I did it all on the Plum App!

Clewyn Mascarenhas

With group health insurance, you can claim tax benefits as an employer, and so can the employees. Thanks to Plum!

Gautham Prakash

One of the best in the industry. The entire onboarding process was seamless and quick. Good customer service team.

Madu Patil

Really appreciate the effort of the plum team members. The product demo was really good and self-explanatory.

Bhanu Teja

Plum offers the best group health insurance quotes in the industry for corporates of all sizes and scales. Great work!

Rajesh Raje

Great support from customer success. The team was highly responsive and resolved all of our claim queries point by point.

Mohan Kapoor

Buying a group health insurance plan has never been better. Kudos to team Plum for such a good claims experience.

Jasspreet Singh

With Plum's WhatsApp claims service; I was able to download my health card within seconds. Good and quick process here.

Dhruv Mishra

Apart from the group mediclaim plan, my employees and their dependents benefited from covid-19 vaccination by Plum.

Veerta Mishra

Along with group insurance cover, we also subscribed to the Plum Wellness program. Employee motivation at its peak.

Ravi Sahitya

I'm entirely convinced and happy with the services provided by Plum Insurance. Truly digital experience and onboarding.

Raju Krishnan

I bought the entire mediclaim policy online. I simply filled in all the details and got assisted by the sales team immediately.

Neeta Chakraborty

Our employees got a good number of benefits along with a medical cover. Plum doctor's consultations are really good.

Komal Pandey

I never thought that I would be able to cover my small group of employees. Thanks to Plum Insurance for the GHI plan.

Jason D'Souza

The plans offered by Plum is good and cover most of the pre-existing diseases from day one. I did it all on the Plum App!

Clewyn Mascarenhas

With group health insurance, you can claim tax benefits as an employer, and so can the employees. Thanks to Plum!

Madu Patil

Really appreciate the effort of the plum team members. The product demo was really good and self-explanatory.

Gautham Prakash

One of the best in the industry. The entire onboarding process was seamless and quick. Good customer service team.

Bhanu Teja

Plum offers the best group health insurance quotes in the industry for corporates of all sizes and scales. Great work!

Rajesh Raje

Great support from customer success. The team was highly responsive and resolved all of our claim queries point by point.

Jasspreet Singh

With Plum's WhatsApp claims service; I was able to download my health card within seconds. Good and quick process here.

Mohan Kapoor

Buying a group health insurance plan has never been better. Kudos to team Plum for such a good claims experience.

Veerta Mishra

Along with group insurance cover, we also subscribed to the Plum Wellness program. Employee motivation at its peak.

Dhruv Mishra

Apart from the group mediclaim plan, my employees and their dependents benefited from covid-19 vaccination by Plum.

Raju Krishnan

I bought the entire mediclaim policy online. I simply filled in all the details and got assisted by the sales team immediately.

Ravi Sahitya

I'm entirely convinced and happy with the services provided by Plum Insurance. Truly digital experience and onboarding.

Komal Pandey

I never thought that I would be able to cover my small group of employees. Thanks to Plum Insurance for the GHI plan.

Neeta Chakraborty

Our employees got a good number of benefits along with a medical cover. Plum doctor's consultations are really good.

Clewyn Mascarenhas

With group health insurance, you can claim tax benefits as an employer, and so can the employees. Thanks to Plum!

Jason D'Souza

The plans offered by Plum is good and cover most of the pre-existing diseases from day one. I did it all on the Plum App!