Key points to keep in mind when choosing group health insurance

  • postauthorRaj
  • postdateMarch 2, 2023
  • postreadtime3 min read
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Employees today no longer look only at receiving monetary benefits but also are more inclined towards joining a company that promises to offer them great benefits in terms of wellness discounts, health coverage, etc. Offering group health insurance coverage to employees is one of the best ways to boost their morale, keep them happy, increase their productivity and retain them. A group health policy provides coverage to employees and their families in case of a medical emergency. However, when buying a group health insurance plan, it is important that you keep it in mind when buying group health insurance.  

Key points to consider while choosing Group Health Insurance for your employees:

Check on your employee healthcare requirements:

When it comes to group health insurance there is no one size that fits all. Every organization has varying requirements including the number of employees employed and employees belonging to different age groups too. If your company has a high number of young people, then purchasing a plan covering maternity and newborn expenses is the right choice. Simultaneously, people in senior management would need a critical illness cover. It is important to know that different customer segments have varying needs and the group health coverage should be chosen accordingly.  

Sum Insured:

Sum insured is the maximum coverage that an employee can receive in the event of hospitalization. Opting for a higher sum insured in today’s times is important as medical inflation is on the rise and so are lifestyle diseases.  

Network hospitals:

Employees can receive cashless coverage at network hospitals that have partnered with group health insurance providers. This means that at the time of hospital admission, employees don’t have to worry about hospital charges as the bills are directly settled with the group health insurer. This way, the employees don’t have to bother about managing funds in times of distress and can easily rely on the coverage offered. Therefore, when buying group health coverage, it is necessary for employers to check the list of hospitals that the insurance company has partnered with.  

Claim settlement ratio:

This ratio is the number of claims settled by the insurance company out of the total claims received. Any ratio above 90 is considered to be a good ratio. The ratio determines the effectiveness of the company in resolving claims. Hence, checking on this ratio before making the purchase is imperative.  

Room rent limit:

This is nothing but the cost of occupying a room or bed in a hospital for 24 hours per day. Group health policies generally come with a room rent limit defined as % of the sum insured or a specific amount which can be Rs.3,000- Rs.5,000 per day depending on the policy sum insured.  In case any employee opts for a room that costs higher than the room rent mentioned in the policy then he will have to bear the remaining costs out of his pocket.  


When choosing group health coverage, it is imperative that you check on co-payment. With the co-payment clause, the employee must pay out a part of the claim out of his pocket. For instance, if the hospital bill is Rs. 1 lakh and the copayment mentioned in the policy is 10% then the employee has to pay Rs. 10,000 out of his pocket and the remaining amount of Rs. 90,000 will be paid by the insurance company. 

Digital first:

With the advent of technology, many insurers have started offering policies online. To save on time and effort, opt for a digital insurer that offers you a paperless process. Modern-day healthcare companies offer a digital dashboard using which you can easily add, and remove employees, pay invoices, etc. 

Wellness benefits:

Offer your employees more than just health insurance benefits. This way, they will feel valued, happy and healthy. You can choose health insurance plans with wellness benefits including discounts on diagnostics, pharmacy, teleconsultation service etc. These added services will make your employees feel valued and cared for. 

You can choose an Onsurity group health membership starting at just Rs. 145/month to take care of your employee health 

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