What is Corporate Health Insurance?

What is Corporate Health Insurance: Corporate health insurance policy refers to the type of insurance policy that is designed for the employees of an organization. The policy provides coverage for expenses in case of health emergency, accidents, financial loss and more.

 Considering the rising numbers of start-ups or SMEs in India, it is becoming increasingly important for employers to restore talent within the organization. Here comes corporate health insurance, which protects the basic needs of employees in which employers can maintain their best resources.

From an employee’s point of view, a corporate health insurance policy is viewed as the second best thing after monetary compensation and it values ​​the employee and respects the organization.

 Types of Corporate Health Insurance Plans:

A corporate or group health insurance plan covers a group of professionals for medical emergencies. These plans are of two types:

1. Contributory Scheme

2. Non-Contributory Scheme

 1. Contributory Scheme

Contributory plan as the name suggests, where the group members/employees need to pay a portion of the premium along with the employer to be insured under this policy.

 2. Non-Contributory Scheme

Non-contributory plan, as the name suggests, where the employer pays the full premium without any contribution from its employees.

How much does corporate health insurance cost?

Depending on the type of corporate health insurance plan whether it is a contributory or non-contributory plan, its cost can be fixed. It varies from one condition to another or from one insurer to another.

 Advantages of Corporate Health Insurance:

Corporate health insurance comes with many benefits. They are as follows:

 1. No Medical Check-up

This policy is also provided for senior citizens without pre-medical check-up. Whereas in other health plans, pre-medical testing may be required based on age or pre-existing medical conditions.

 2. No waiting period

In the case of a regular health plan, pre-existing diseases will be covered after a waiting period of 2 to 4 years. Even certain medical conditions and maternity benefits are subject to a waiting period. But being the biggest advantage of a group health plan, the covered members get insurance coverage from day one.

 3. Pre-existing Diseases

Pre-existing diseases refers to diseases that you may have had before you were insured. With corporate health insurance, one can claim irrespective of having a pre-existing disease.

 4. No contribution to premium

The premium is mostly paid by the employer. However, if you plan to increase the sum insured or increase it with another health plan, you will have to pay an additional premium.

 Disadvantages of the Corporate Health Insurance:

There are also some disadvantages to corporate health insurance. They are as follows:

 1. Policy Tenure

Corporate health insurance provides coverage as long as you are not employed with the organization. The policy terminates when you leave the organization.

2. Not all plans provide coverage for extended family

Not all corporate health insurance plans provide coverage to the employee’s family. This is one of the major cons of this policy. If you are married and have children and dependent parents, corporate health insurance may not be suitable for you. You may have to opt for an individual health insurance policy as the coverage under corporate health insurance may seem inadequate for you.

 3. Predetermined Rooms

Rent Limit In a corporate health insurance plan, the allowable room rent limit is predetermined. So, if you opt for the higher fee hospital room, you will have to pay the additional charges.

4. Coverage Amount

The coverage amount limit in a corporate health insurance policy is up to Rs 4-5 lakh. In case of critical illness or accident, this amount will cover only 20%-30% of the total expenses.

 Since most of the organizations are providing corporate health insurance plans, the insurance company evaluates the risk potential of each member involved in the plan. After that, the risk factors are combined and the premium is fixed on the average risk factor of the group.

Keeping the facts in mind, it is better to opt for a separate family floater health insurance plan, which gives you better coverage, which will cover your family and parents for all health related emergencies.