Know why employer medical insurance is probably not sufficient

By anshuli IST (Up to date)


Employer-provided medical insurance is an association the place the employer purchases a medical insurance plan and pays premiums for the advantage of the worker. Usually, this is a bonus given however does it actually serve the aim?

The medical insurance protection supplied to you beneath your employer group plan is a good way to maintain your self insured, but it surely is probably not sufficient. With a major rise in medical inflation, a household group cowl of Rs 2-3 lakh might not resolve a lot.

Based on consultants, a minimal sum insured of greater than Rs 5 lakh is required to cowl any essential sickness, which isn’t supplied by most employers.

What’s the present state of affairs?

Based on Venkatesh Naidu, CEO, Bajaj Capital Insurance coverage Broking Restricted, a current media report states that on a median 60 per cent employers present sum insured under Rs 2 lakh, 20 per cent employers present Rs 2-3 lakh sum insured, And 20 p.c present sum insured of Rs 4 lakh and above.

The graph under exhibits this:

A current report by Marsh Insurance coverage Brokers additionally states that now solely 36 p.c of organizations favor to cowl workers beneath worker group medical insurance policies. The variety of insurance policies masking workers has modified drastically from 65 p.c to 54 p.c through the years.

Furthermore, many research recommend that the general public in India are uncovered to some way of life ailments at an early stage together with diabetes, hypertension, coronary heart issues and so on. This will increase the possibilities of folks finally encountering medical contingencies.

“An necessary side to think about is that employer-provided medical insurance is related to quite a lot of restrictions together with sub-limits, capping of room lease, and so on., limits on essential diseases, and so on. All these restrictions are superior and finest well being develop into a hindrance in taking service, Naidu mentioned CNBC-TV18.COM,

He mentioned some employers can not proceed to cowl workers beneath the corporate’s group medical coverage to chop prices and those that wish to transfer firms should see if the brand new agency has ample medical insurance.,

So what must you do?

Contemplating the given state of affairs, in line with Naidu, it will be prudent to purchase a person cowl for you and your loved ones.

“If you happen to or your loved ones members fall sick and require hospitalisation, the majority of the medical bills will likely be met by your particular person medical cowl plan with out burning a gap in your pocket,” Naidu mentioned. Advised.,

“If you happen to really feel that the duvet supplied by your employer is enough, chances are you’ll have to assume once more. The quilt supplied by many of the firms comes with a restricted sum insured, i.e. often round 2-3 lakhs, which is inadequate to offer ample monetary help. In case of a serious sickness. To keep away from getting caught in such a state of affairs, for particular person well being cowl with enhanced sum insured of not less than Rs.10 lakhs. It’s at all times secure to go,” he mentioned.

One other necessary purpose you would possibly take into account shopping for a person well being cowl is that employers often negotiate a number of necessary features with insurance coverage firms such because the variety of essential diseases lined, dependents to be lined, and Minimal and most sum insured.

“Employer-provided well being cowl is usually waived off on main essential diseases and surgical procedures that might be a threat to you or your loved ones, given your medical historical past. However keep in mind, the earlier you get a medical cowl for your self. The extra you purchase, the upper the revenue, and that’s as a result of the premium will likely be decrease,” he mentioned.

Whereas tax deduction shouldn’t be the one purpose that you just put money into medical insurance, it’s equally necessary to know that as per the provisions of the finances, you possibly can avail tax advantage of as much as Rs 25,000 beneath part 80D on medical insurance premium. Huh. Paid for self, partner and youngsters.

As well as, if you happen to pay medical insurance premiums of your mother and father, you can even declare tax advantages as much as Rs 50,000 beneath part 80D.

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