We often get to hear following objection by employees of Public and Pvt Sector :
I have adequate Health Insurance from my employer then why do I need own Health Insurance Policy ?
First and foremost, how many people are aware what cover their employer has offered them :
How much sum insured ?
How many family members are covered ?
What are the sub limits and Co pay in the Health Insurance provided by the employer ?
what are the room rent capping ?
What is corporate Buffer ?
How much is the corporate buffer and in what situation can it be utilized ?
In most of the cases employees aren’t aware about such important things about their health Insurance cover and then its no surprise that at the time of Hospitalization , they tend to suffer , get reactive, repent but then its too late ..
The solution for the above is simple , ask the HR dept and get copy of your insurance policy or details of the coverage and send it to us and we will explain you each and every important aspect of your Health Insurance Cover ..
However, the question remains : Why do I need my Own Health Insurance even if I have been covered adequately by my employer ?
No Guarantee of continuity : Employers provide Health Insurance cover to their employees as welfare measure .
Year on year the premium of that group Cover keeps mounting due to adverse claims ratio as most of time maximum covers are taken viz. : No Room Rent capping, All Pre Existing diseases covered from day one , Maternity cover etc. due to which claims outgo often surpasses the premium paid and then at renewal insurers charge higher premium.
In such a high Incurred claims ratio situation , employers has no option but to continue the cover to avoid employees’ dissatisfaction and unrest , but their budgets are NOT unlimited, hence sometimes they have to take hard call and either avoid providing Health Cover to employees or reduce the coverage or shift insurance to insurers who charge the lowest ( Obviously , whose services are also of the same standard )
In such cases , employer pays employees some amount to buy their own Health Insurance cover but then Health Insurance is NOT like any other commodity which you can buy whenever you want it .. in fact my favorites statement is : When Health Insurance is sold it is avoided and when customer wants to buy it, insurer avoids to sell it..
In Nutshell :
1. Own Health Insurance is needed because Employer provided Health insurance is NOT guaranteed to continue
2. Most of the employer provided Group Health Insurance cover is inadequate
3. Once employee leaves the organization , his Health Insurance cover is NIL and if he is above 50 years , suffering from Diabetes, Hypertension, Asthama or Heart Problem or any adverse Health Condition, Health Insurance can be denied , premium can be loaded and even if accepted there will be restrictions on sum insured and all the waiting periods will apply afresh .
4. Most of the time , an employee tends to forget buying his own health insurance cover after leaving the organization and then gets the shock of his life if he or his family members get hospitalized and then there is NO cover.. He has no other option but to liquidate his Fixed deposits kept for rainy days for important events like Children’s marriage, Higher Education , emergency funds etc.
As a prudent investor, would you NOW depend on Employee provided Health Insurance Cover or Buy adequate cover Immediately . ?
If you agree with my views in this article and wish to get detailed guidance for yourself or your employees , pls. don’t hesitate to contact us ..
My mail id is : founder@mpathymediclaim.com