As a business grows, so does the responsibility of ensuring employee well-being. Offering health coverage is one of the most impactful steps an employer can take, and the right group insurance plan provides financial security, peace of mind and a stronger sense of loyalty among employees.
However, if you are a first-time buyer, navigating the complexities of group health coverage may seem overwhelming. A structured checklist can help you evaluate, compare and select the best options without missing any crucial details.
Here is a detailed checklist that can guide you through the process and ease the selection of the best plan for your employees.
Eligibility Criteria to Buy a Group Insurance Plan
To buy a business insurance policy, employers need to meet certain eligibility criteria.
- Typically, IRDAI requires a minimum of 20 members, though some insurers offer micro-plans for groups with as few as 3–10 members.
- Eligible groups include employer–employee setups or registered associations with a genuine common purpose.
- Businesses must be formally registered, as informal or family-only groups don’t qualify.
- Coverage usually extends to full-time employees and, in many cases, dependents, with some policies including part-time or contract staff.
Factors to Consider When Buying a Group Insurance Plan for the First Time
Assess Employee Needs
Every workspace is unique. For instance, younger employees may prioritise preventive health check-ups, while middle-aged staff may seek higher hospitalisation coverage. As an employer, survey your team to understand their preferences and health requirements. This assessment helps you choose a plan that addresses the majority’s needs while balancing costs effectively.
Compare Insurers and Policies
Don’t settle for the first policy you come across. Compare multiple insurers and their plans against factors like premium costs, benefits offered, network hospitals for cashless treatment, claim settlement ratio, flexibility to customise coverage options and others. A thorough comparison ensures you choose the best group insurance plan.
Look for Flexibility and Add-Ons
Modern insurers provide optional add-ons that enhance employee benefits. Some of the common add-ons are critical illness cover, maternity and newborn coverage, outpatient consultation and dental cover, wellness benefits like yearly check-ups. While add-ons may increase premiums, they also make your organisation’s benefit package more comprehensive.
Read the Exclusions Carefully
Every insurance policy has fine print, and exclusions often hide there. Waiting periods, restrictions on pre-existing illnesses, or caps on certain treatments are common. Do not skim this part. It is better to ask awkward questions now than face rejected claims later.
Check the Claim Process
This is where the real test comes. A plan is as good as its claim process. Can employees access cashless hospitalisation? Is there round-the-clock assistance? How fast are the claims settled? Try to get feedback for an insurer and their plans. You can even read reviews online on various platforms to clear your doubts.
Conclusion
Choosing the right group insurance plan is not just another HR task; it is an investment in your team. When done right, it can help build trust, reduce stress and protect the people who will help you grow your business.
Through comparison and the right approach, you can find the best plan that meets your requirements. Companies like TATA AIG design plans that make this step simpler for employers, much like a dependable business insurance policy protects the organisation itself.
Anantha Nageswaran is the chief editor and writer at TheBusinessBlaze.com. He specialises in business, finance, insurance, loan investment topics. With a strong background in business-finance and a passion for demystifying complex concepts, Anantha brings a unique perspective to his writing.
