Need Help / information on Group Medical Insurance

Hi All,

I represent a Mid sized IT (Semiconductor) company. We are in the process of revising the Group medical insurance that we provide to our employees & their dependants.

I would like to understand what kind of coverage do other companies provide to their employees.

Would appreciate if people could give me details of the same. I also do have some specific questions that I have listed below:

Who do you define as your dependants?
Are parents also usually covered under this policy?
Is the coverage given to employees based on the grade at which one is?
If so does company limit the coverage to a certain amount of risk coverage or would it be on a Premium amount?
Do companies have a floater policy?
Does it make sense to have a floater policy?
What if in a floater policy the group coverage amount is utilized by other dependants & when it comes to the employee's illness there is nothing left... in such case what do you do?
Is there a min. for which an employee needs to be insured for?

Looking forward to your inputs.
Thanks
Roopa Reddy
Manager - Human Resources
RMi Technologies India Pvt. ltd.

Hi Roopa,

Who do you define as your dependants?

A: Wife and children. This is an usual practice followed by the insurance company.

Are parents also usually covered under this policy?

A: Normally insurance don’t allow this but if you have large numbers like 25000 + then it may be possible to leverage your bargaining power. Also pre-existing diseases are exempted and also pregnancy( a planned risk) is also covered as well.

Is the coverage given to employees based on the grade at which one is?

A: Yes, based on grades as per your defined limits

If so does company limit the coverage to a certain amount of risk coverage or would it be on a Premium amount?

A: Sorry am not clear what is your point ?

Do companies have a floater policy?
Does it make sense to have a floater policy?
What if in a floater policy the group coverage amount is utilized by other dependants & when it comes to the employee's illness there is nothing left... in such case what do you do?
Is there a min. for which an employee needs to be insured for?

A: Floater policy makes sense in every way.. normally the coverage is for a year hence it is quite unlikely that the limit would be utilized in a year!

The common practice is Rs one lac a minimum floating cover for a family of four at the lowest grade and it can be increased as per the levels defined say 2 – 4 – 6 lacs etc.

Regards,

Rajat

Rajat,

thanks a lot for your response.

Rgds
Roopa