Understanding Group Health Insurance

Updated: Apr 24, 2019

Understanding Group Health Insurance

Health insurance policies come in various sizes and types, with varying terms and conditions, sum assured, benefits, waiting periods, etc. When a health insurance policy provides coverage to all the members of a group, it is known as a group insurance policy. Group health insurance is usually given by employers to employees, and often includes both parties as beneficiaries. There are various insurance amounts and premiums available, and the plans can differ from one individual to another. Organisations may customise the plan based on the requirement of their employees. Sometimes, the families of the insured people are also covered.

What are the advantages and features of a group health insurance plan?

The following are the advantages of group health insurance for employees:

1. The pre-existing disease, which is usually excluded from individual health insurance plans, are covered by a group insurance plan right from the day the employee joins the organisation. Thus, the waiting period is done away with.

2. The coverage is wider and there is no limit on diseases.

3. The maternity coverage given to young employees is an advantage because it does not have to be purchased separately or as an add-on. It also comes without the 90-day limit on the cover for new-born babies.

4. They cover medical benefits for not just the insured but also for his or her family (children, spouse, and dependent parents.)

5. It can cover additional costs such as ambulance charges, and sometimes even consultation fees and check-up charges.

6. Cashless claims are available across network hospitals.

Employers get the following benefits:

1. Providing group health insurance to employees gives tax benefits to the employers.

2. It ensures that employees are satisfied and continue to work for the company.

3. The cost is comparatively lower than that of individual insurance policies.

1. The exclusions under this category are:

1. Some plans do not provide coverage for parents.

2. Non-allopathic treatment (included under AYUSH) such as Ayurveda, Unani, Homeopathy, etc. are not covered.

3. The validity of the group insurance policy ends when the employee exits the company.

4. Congenital diseases, AIDS treatment, conditions arising from drug or alcohol abuse, etc. are not covered.

Companies usually provide group health insurance option so as to ensure employee satisfaction and to retain their employees for a long time. It helps them expand and grow as an organisation, as well. Employees also opt for this because it reduces the premium amount and is customisable according to individual needs. It has several benefits that regular plans do not.

If you’re working for an organisation, it can be very helpful for you to join the group health insurance policy. You can look up this and many more insurance policy options on ManipalCigna’s website here:


ManipalCigna Health Insurance Company Ltd (Formerly known as CignaTTK Health Insurance Company Limited) | CIN U66000MH2012PLC227948 | IRDAI Reg. No. 151 
Reg. Office: 401/402, 4th Floor, Raheja Titanium, off. Western Express Highway, Goregaon (East), Mumbai- 400 063 | Toll free number – 1800-102-4462 | Website address –
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