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The Benefits of Choosing Group Medical Insurance

We live in a post-pandemic world where health has become a significant concern for a majority of people. Whether it is the growing health risks or rising medical inflation, individuals worry about its impact on themselves and their loved ones. This is where individuals can opt for the right health insurance plan for their needs to mitigate these risks. 

Group Medical Insurance

However, as only some have the financial capacity to invest in safeguarding their health, the Government of India, realising this gap, have made it mandatory for all professional organisations to provide health insurance to their employees. This is where group health insurance benefits both employees and the organisation providing it, but what is it, why is it important, how is it beneficial for employees and the organisation, and how can you get one for your organisation? Keep reading to find out. 

What is group medical insurance, and why is it important?

Group medical insurance policy is a valuable employee benefit offered by employers to provide healthcare coverage for their employees and sometimes their dependents. It is a policy that covers the healthcare costs of a group of individuals, typically employees or members of an organisation. These policies are preferable due to their simplicity, convenience, cost-effectiveness, and customisability. 

As the government has mandated providing health insurance to employees, if your company has more than seven employees and you also wish to provide coverage for their dependents such as wife and children, then it is a good idea to purchase a company group health insurance policy as opposed to providing individual health insurance to each employee.

What are some benefits of group medical insurance?

  • Comprehensive healthcare coverage

One of the significant advantages of group medical insurance is that it provides comprehensive coverage for a wide range of medical expenses. This includes hospitalisation costs, doctor's fees, ambulance services, medicines, etc.

  • Financial security

A group medical insurance policy also includes individual coverages providing financial security of up to the sum insured. For example, if a policy is insured for ₹5,00,000, then the employee and their dependents can avail of health insurance benefits of up to that sum.

  • Access to a vast network of healthcare providers

Similarly to individual plans, a group insurance policy enables employees to access a vast network of healthcare providers. For example, Niva Bupa, one of India's leading health insurance companies, has over 10,000 hospitals in its network, providing instant cashless claims.

  • Pre-existing disease coverage

Depending on the policy opted for, group health insurance also provides 100% pre-existing disease coverage for employees, allowing them to 

  • No pre-policy check-up

Group policies require no pre-policy check-up, making it a convenient experience for the employees. 

  • Coverage for dependents

Depending on the policy, group insurance plans also cover dependents, including spouses, children, and ageing parents. 

  • Tax benefits

The premium for group health insurance is usually wholly or partially sponsored by the employer and is tax deductible, providing tax benefits to the organisation.

  • High employee retention

Providing group insurance plans to employees helps create a positive work environment and boosts employee morale. This is a significant factor in employee retention and highly benefits the employer.

Where to buy group medical insurance for employees?

Employers can choose one of three ways to buy group medical insurance for their employees. The first is directly contacting a health insurance provider like Niva Bupa and consulting their insurance advisors. They can offer a simple, convenient, customised, cost-effective plan for your needs. If you are unaware of what you need, you can still contact an insurance provider who can assist you. 

If you do not know what insurance provider you should approach, consider contacting an insurance broker who can help you determine an insurance provider and a specific plan you can choose for your policy. Additionally, if you do not care which insurance provider you get your policy from, you can purchase a group policy from a bank using the bancassurance model. 


In conclusion, there are numerous benefits to providing the right group medical insurance to your employees. Whether it is direct or indirect, these benefits are advantageous to both employees and the employer. Whether it is lowering attrition rates and employee turnover or creating a safe and productive work environment, group medical insurance is critical to unlocking a positive work culture in your organisation. 

So secure your employees' financial and medical well-being today with the right group medical insurance policy for their needs. 

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