Types of Corporate Insurance
Just like any individual or any family, a business to needs insurance for smooth sailing. Like in the lives of individuals, businesses may also encounter unprecedented setbacks. To cope up with such emergencies, active insurance coverage becomes essential. This is where the issue of corporate insurance comes into the picture.
What is Corporate Insurance?
Corporate insurance is a special type of insurance coverage that is utilized by large business houses or organisations in order to protect the business from several kinds of operational risks like financial damages, theft, losses incurred because of negligent and/or improper business practices, etc. Corporate insurance protects the employees and the business itself. In India, employee health insurance is the most common type of corporate insurance. There are many types of corporate health insurance available here.
Benefits of Corporate Health Insurance:
- Corporate health insurance helps in the enhancement of the business network and clientele base. It attracts numerous potent job seekers to build up a strong team that plays prominent parts in business expansion in the long term. It acts as a major attraction.
- A corporate insurance facility creates a sense of loyalty among the employees. It creates a sense of mutual understanding between the company and its workforce, and they work in tandem mutually to benefit each other.
- It acts as safety coverage for the employees along with their dependents, enhancing the chances of better creativity and productivity.
- By offering group health insurance to their employees, the employer gets tax redemptions under the current IT Act.
- Group health insurance offers reasonable premiums while the insured enjoy access to the best medical treatment and care during emergencies.
Types of Corporate Health Insurance:
Here are the 4 different types of Corporate Health Insurance available in India as mentioned below:-
1. Group Personal Accident Plan
This is a great way to demonstrate that you value your employees as the strongest assets to your organisation. Some big companies of the country offer this facility with the option to customise the terms and conditions according to your requirements under any unfortunate circumstances of the concerned employee.
This plan covers unfortunate accidental death of the employee, dismemberment, permanent total/partial disability, weekly benefits, and reimbursement of accidental medical expenses. Some optional riders include children’s education allowance up to a certain limit, family transportation, modification allowance, funeral expenses. However, there are certain exclusions like pre-existing ailments, AIDS, dangerous sports, war, military services, pregnancy/ childbirth-related issues, bacterial infections, illegal acts, suicide.
2. Group Mediclaim Policy
This plan offers comprehensive protection at reasonable costs for large business organisations, travel companies, credit societies, educational institutions, and other corporate offices. It efficiently balances cost with quality, delivering value to your employees, the biggest assets to your organisation.
These sorts of policies provide low premiums, keep open the option for customizing the policy coverage, it covers at once all the members who are enrolled under the plan, offers cashless claims with network hospitals, begins from the very day of the purchase, offers several kinds of incentives for being a valuable part of the group insurance plan.
3. Maternity Coverage
Some companies provide exclusive maternity coverage for their female employees and the dependent spouse of their male employees. All the related childbirth expenses also come under the domain of this plan. Some companies even include the newborns under this scheme automatically, serving no waiting period. A compulsory six-month paid maternity leave is a common practice in India, which can be extended up to a certain limit on the requirement.
4. Paternity Leave
Some companies are now starting to grant paternity leave for their male employees, to handle the situation of childbirth. This leave spans generally for around a week to two weeks.
Although corporate health insurance plans vary from one company to another, yet there are certain common trends. These plans cover accidental treatment costs and other illnesses that are mentioned under the company’s policy terms. You can avail of domiciliary expenses too. Depending on the organisation’s employee strength, the pricing, and the terms of the plan differ.
Exclusions:
Group health plans consider certain common exclusions:
- Corporate health insurance does not cover pre-existing ailments.
- Mandatory diagnosis or medical tests are not covered here
- Additions and exclusions from the plan are strictly limited to the policy followed by the concerned company
- Ailment or damage caused by any war situation does not come under the scope of a group plan
- Despite the doctor’s recommendation, this plan does not cover the costs of external durables like contact lenses, wheelchairs, and the like.
This is a comprehensive guide to corporate insurance, with a special focus on types of corporate health insurance. This is more contextual under the current circumstances because it has become mandatory for every Indian company to provide employee health insurance after the worldwide outbreak of Covid-19.