What Is Group Health Insurance? – Complete Guide
Group Health Insurance is a health insurance policy that provides medical coverage to a group of people under a single master policy. It is commonly offered by employers to employees, as well as by associations, societies, trusts, and professional groups to their members.
This policy helps cover hospitalization, medical treatments, and related expenses at a lower premium compared to individual health insurance.
Who Can Buy Group Health Insurance?
Group health insurance can be purchased by:
- Companies and startups
- MSMEs and large enterprises
- Societies and housing associations
- Trusts and NGOs
- Professional associations
A minimum number of members is usually required to form a group.
What Does Group Health Insurance Cover?
Group health insurance policies generally include:
1. Hospitalization Expenses
Covers room rent, ICU charges, doctor fees, and medicines.
2. Pre & Post Hospitalization
Expenses incurred before and after hospitalization.
3. Day Care Procedures
Covers treatments not requiring 24-hour hospitalization.
4. Maternity Benefits
Available in many group plans without long waiting periods.
5. Cashless Treatment
Access to network hospitals across India.
Number of Insurance Companies Offering Group Health Insurance in India
As per IRDAI, group health insurance is offered by 30+ insurance companies in India, including:
Public Sector Insurers
- New India Assurance
- United India Insurance
- Oriental Insurance
- National Insurance
Private General Insurance Companies
- ICICI Lombard
- HDFC ERGO
- Bajaj Allianz
- Tata AIG
- SBI General
Standalone Health Insurers
- Star Health & Allied Insurance
- Niva Bupa Health Insurance
- Care Health Insurance
- ManipalCigna Health Insurance
Tax Benefits of Group Health Insurance
Group health insurance offers tax advantages for both employers and employees.
Tax Benefits for Employers
- Premium paid is allowed as a business expense
- Deductible under the Income Tax Act
- Helps reduce taxable business income
Tax Benefits for Employees
- Employer-paid premium is not taxable as a perquisite
- If employees pay additional premium, they can claim deduction under Section 80D
Why Group Health Insurance Is Important
- Provides medical security to employees or members
- Enhances employee retention and satisfaction
- Lower premium compared to individual plans
- Immediate coverage with minimal waiting periods
- Improves employer brand value
How to Choose the Right Group Health Insurance Policy
- Assess group size and demographics
- Choose adequate sum insured
- Check inclusions, exclusions, and sub-limits
- Review network hospitals
- Compare premium vs coverage
Conclusion
Group Health Insurance is a cost-effective and efficient way to provide healthcare protection to employees and members. With multiple insurers offering flexible group policies and tax benefits available for employers, group health insurance is an essential part of organizational welfare planning.
At Saving Mantra, we help businesses and organizations select the most suitable group health insurance plans with expert guidance and compliance support.
Disclaimer
This blog is for informational purposes only and does not constitute medical, financial, or tax advice. Policy terms, coverage, and tax benefits may vary depending on the insurer and applicable laws. Readers are advised to consult qualified insurance advisors or tax professionals before making decisions.