All an employee needs to know about the organization offered health insurance; its benefits, coverage and the costs associated with it.
Offering health Insurance benefit has become an inevitable part of every organization. The premium is deducted from the CTC which is informed to the employees well in advance, often at the time of joining the organization. In layman’s words, it is the deduction that doesn’t pinch the pockets as it covers for all the expenses that come due to hospitalization in case of any health emergency. There is a lot more to learn about it. We can compare both company offered health insurance and individual health insurance one on one so as to explore the differences in detail
what does organization provided health insurance mean?
It is a master policy that covers all the employees of an organization. It is an obligation that every employee has to abide by for which a standard sum of money is subtracted from the salary because of the policy. Policy comes to use in case of hospitalization where employee realizes the merits of possessing employee health insurance. In absence of any health adversity, the employee gets no benefit.
Corporate health insurance policies are anyways economical than individual ones. The small premium is explained by the large chunk of employees that are earned as customers by the insurer due to the employer. The premium also has to do with the number of employees in the organization. Large number of employees means the policy premium is shared among more people. Therefore, the premium is smaller for that company’s employees.
It is mandatory for every employee to understand the advantages offered under corporate health insurance on the day of joining itself. Sum assured will be communicated to you. However, you in no case will be allowed to choose from a variety of options. Few options will be provided to make choices. Benefits and limits are of high importance when it comes to availing the policy. Company offered policies without any conditions cover all the maternity costs and pre-existing diseases right after employees sign up for them.
Individual policies, on the other hand, ask policyholders to surpass the waiting period to cover such conditions.
The economic slowdown has taken over the insurance companies as well. Companies are eliminating costs as slowdown has hit them too. Cost cutting is being done by lessening room rent limits, suggesting a clause wherein the employee may have to bear part of the costs related to hospitalization.
Private vs Government
Both Private and Government companies offer these policies. But Government offered policies such as CGHS (Central Government Health Scheme) are better in terms of extensibility and specificity. Sum assured is not bound by limits. It is the full hospitalization that is covered. Network hospitals and cashless benefit may or may not be exclusively offered by government of private organization.
What you are expected to do?
Nobody works for the same organization for eternity. So at the time of job switching, there is no certainty as to whether or not the employee will get the similar benefits in the next company. Facilities may get changed with respect to the headcount of company, its financial status and many other guidelines. Sticking with the same organization may not guarantee one long term benefits.
It is therefore advisable to consider these two options. You can either purchase a stand-alone policy that covers whole of your family or go for a top up that backs up your current policy. Opting for either one of these can offer you a sense of protection even if you leave your organization at any stage.