Payal Agarwal
March 10, 2026
8 min read
1922Table of Contents
Group health insurance is a form of coverage that offers comprehensive medical benefits to a group of people, such as employees of an organization. Under this plan, unforeseen medical costs are mitigated, and coverage for pre-existing diseases, as well as pre and post-hospitalisation expenses, is provided.
In India, group health insurance is mandated by the government for all employers, ensuring employees and their families receive necessary healthcare support. Whether you’re a start-up or an established organization, understanding group health insurance can help you take care of your team effectively.
This is one important investment toward nurturing employee well-being and promoting a positive work culture that everyone would appreciate.
Group Health Insurance Benefits for Employees
As an employer, offering a group health insurance policy to your employees demonstrates not only the value you place on their contribution to the company but also emphasizes your concern for their welfare. Let’s delve into what are the benefits of group health insurance plans for employees.
1. Comprehensive coverage
One of the advantages of group health insurance is that it covers a wide array of medical costs. The policy could include hospitalization as well as pre and post-hospitalization expenses. This can help make your team feel assured that they are financially protected.
2. Coverage for dependents
A group health insurance plan often extends coverage to employees’ loved ones. This means not only are employees covered, but their families are too.
3. Additional benefits
Many group health insurance policies include added perks such as maternity benefits, mental health support, preventative care programs, annual health check-ups, and even teleconsultations.
4. No Medical Screening
Usually, no medical check-ups are required to join the group policy.
5. Day-One Coverage (Policy Dependent)
Many group health insurance policies offer reduced waiting periods and may provide coverage for pre-existing diseases from Day 1, depending on the insurer and plan terms. This can be a major advantage over individual plans, which typically have waiting periods of two to four years for chronic conditions. However, coverage details vary by policy and should be reviewed carefully.
Also read: Types of Group Insurance
Drawbacks of Group Health Insurance for Employees
The benefits and advantages of group health insurance plans are clear. However, is group health insurance likely to have drawbacks? Yes, it is. Here are a few to consider:
1. Limited coverage
The coverage offered by a group health insurance plan can be limited. While it provides coverage for pre-existing diseases and hospitalisation expenses, it may not cover specific treatments or health conditions.
2. Lack of personalisation
Group health insurance caters to a wide range of employees. Therefore, what is included in the health insurance plan may not be suitable for everyone. For instance, an employee with a particular chronic condition might require different coverage than what the group health insurance policy offers.
3. Dependent on job status
Group health insurance is tied to employment. In case an employee leaves the company or loses their job, they lose their health insurance coverage as well. It can be particularly concerning for employees who have ongoing medical conditions.
While group health insurance is one of the most common ways to provide health benefits to employees, it does have its limitations. Remember, providing the right kind of group health insurance coverage is not just about meeting a legal requirement; it is also about ensuring that your workforce stays in good health.
An understanding of these drawbacks can help employers make informed decisions about which type of insurance best serves their team’s needs. Many new-age insurtech companies like Onsurity offer customised group health insurance plans that can help cater to the varying needs of your team.
Group Health Insurance Benefits for Employers
Opting for a group health insurance policy provides a host of advantages not just for the employees, but for the employers as well. Let’s discuss some of the top benefits for your enterprise.
1. Employee retention and attraction
A robust group health insurance plan can serve as an effective tool for attracting and retaining the best talent in the industry. Employees value health protection, especially in current uncertain times, making this a compelling part of your compensation package.
2. Improved productivity
Ensuring that employees have access to quality healthcare can result in better overall health and well-being, leading to enhanced productivity and reduced absenteeism, which benefits the organisation as a whole.
3. Economical
Group health insurance plans are less expensive compared to individual health insurance policies. This is due to the risk being spread over a larger group of people.
4. Comprehensive coverage
These policies generally offer broader coverage including pre and post-hospitalisation expenses, making them more comprehensive than individual policies.
5. 100% Tax-Deductible
Under Section 37(1) of the Income Tax Act, the premiums paid for employee group health insurance are considered “business expenses.” This means the entire amount can be deducted from your total taxable income, effectively reducing your company’s corporate tax liability.
Also read: Tax Benefits of Group Health Insurance
Benefits of Onsurity’s Group Health Insurance
In the dynamic realm of growth and competition, it is essential not only to recruit talented professionals, but also to retain them. One way to achieve this is with group health insurance. By choosing Onsurity’s group health insurance policy, you’re not just ensuring your employees’ wellbeing but are also boosting the overall productivity of your organisation.
Let’s explore the unique features of the group health insurance plan that Onsurity has to offer:
1. Accessible and affordable
Onsurity’s group health plan is cost-effective starting from a mere INR 145 per employee per month, making it feasible for micro-to-medium scale enterprises.
2. Comprehensive coverage
Onsurity’s group health insurance policy for employees covers in-patient hospitalisation, daycare treatment, pre- and post-hospitalisation costs, ambulance charges, and regular and ICU room rent.
3. Customized plans
Every organisation is unique, and so are their needs. Onsurity offers customised group health insurance plans to cater to specific organisational needs.
4. Family coverage
The comprehensive coverage isn’t limited to employees; their immediate family members also enjoy the benefits of group health.
5. Zero out-of-pocket expenses
This feature ensures that your employees don’t have to pay for healthcare expenses from their pockets, providing them adequate financial security.
6. Ease of use
The platform is user-friendly, making personalised healthcare accessible to startups, SMEs and major corporations alike.
7. End-to-end claim assistance
Medical emergencies are stressful enough without the burden of complex paperwork. Onsurity’s Good Doctors Team is a dedicated group of real medical professionals providing personal claims concierge services to simplify the process. They guide you through every step from hospital admission to final settlement by handling coordination with hospitals and insurers. This expert medical support ensures a smoother and faster claims experience so you can focus entirely on recovery.
8. Immediate coverage
Unlike individual health insurance, which often comes with a waiting period, Onsurity’s group health insurance plans offer immediate coverage right from day one.
9. Alternative treatments
Treatments such as Ayurveda, Unani, Siddha, and Homeopathy are also covered by Onsurity’s group health insurance plan. However, it’s recommended that you go through the policy terms and conditions closely.
Also read: How to Choose the Right Group Health Insurance?
Conclusion
As an employer, providing health insurance for employees can be incredibly rewarding, with advantages of group health insurance going beyond merely economic benefits. From boosting employee morale to fostering a sense of shared responsibility within the team, group health insurance has it all.
Onsurity’s group health coverage for businesses is more than just insurance; it’s a commitment to your employees’ wellbeing. By providing comprehensive health benefits to your team, you’re not just covering their medical expenses. You’re demonstrating empathy and endorsing a healthy work culture. This, in turn, boosts morale and fosters loyalty among your staff.
FAQs
1. What is Group Health Insurance?
It is a collective healthcare plan that covers a specific group of people, most commonly a company’s workforce under one master policy. Instead of each person having their own separate plan, everyone is protected by a single, comprehensive umbrella.
2. Who can get Group Health Insurance?
Generally, any full-time employee of an organization is eligible. This also extends to members of registered associations, unions, or professional groups. Many modern plans also allow employees to add their spouses, children, and parents to the same cover.
3. Can I continue my group policy after leaving my job?
Yes, you can. According to IRDAI guidelines, you have the option to migrate your group coverage into an individual or family policy with the same insurer. This ensures you do not lose the credit for any waiting periods you have already served. To do this, you should ideally notify the insurance company at least 30 to 45 days before you leave your organization.
4. Does group health insurance cover pre-existing diseases?
Yes, most group health plans cover pre-existing diseases from day one. This is one of the most significant benefits of a group policy, as individual plans often come with a waiting period of 2 to 4 years for conditions like diabetes or hypertension. Under a group plan, you are usually protected the moment your membership is active.
5. Can I increase the coverage amount in a group insurance plan?
While the base coverage is usually fixed by the employer, there are ways to increase it. Onsurity makes this very easy by allowing employees to “top-up” or upgrade their plans directly through the Onsurity app. This feature gives you the freedom to boost your sum insured or add more family members to your plan for a small additional cost, ensuring your protection is tailored to your specific needs.
6. What is covered under a group mediclaim policy?
A group mediclaim policy provides extensive medical protection for employees and their families by covering hospitalization, surgery, and room rent. Most standard plans include pre and post-hospitalization costs for tests and follow-up care, daycare procedures, and modern treatments like robotic surgeries. Onsurity takes this further by offering a holistic health experience that goes beyond hospital bills. Members gain access to a full dashboard of benefits including unlimited teleconsultations, discounted lab tests, and mental wellness support to ensure your team stays healthy every day.
7. Can I claim company health insurance on my taxes?
No, if your employer pays the full premium, you cannot claim it. If you pay any part of the premium (including a personal top-up), you can claim that amount under Section 80D but only under the old tax regime.
8. What is the benefit of a group insurance scheme?
A group insurance scheme provides affordable healthcare coverage to employees, protecting them from unexpected medical expenses while ensuring financial security and access to quality treatment.
9. What are the benefits of a group health insurance policy?
A group health insurance policy provides comprehensive medical coverage to employees under a single plan, typically including hospitalisation and pre- and post-hospitalisation expenses, helping reduce financial burden during medical emergencies.
Senior Executive – Content
Payal specializes in the healthcare, wellness, and insurtech space, with a strong focus on educating businesses about insurance and employee wellbeing. She is passionate about simplifying an industry that is often misunderstood and filled with complex jargon, translating it into clear and practical insights that organizations can easily understand and act on. Through her work, she aims to make the insurance ecosystem more transparent and accessible, helping businesses recognize that prioritizing employee wellbeing is not just a benefit but a responsibility.
