With the Covid 19 nonetheless lurking in your shoulders and closely respiration on our necks, medical insurance is unquestionably one thing that one desires to disregard and even delay. So, should you had been considering a medical insurance plan, you possibly can take into account the group well being plans provided by your financial institution.
Group Insurance coverage isn’t just provided by your employers solely nevertheless even banks can supply a bunch medical insurance plan to all its account holders and most personal and public sector banks do supply the ability of group medical insurance schemes for his or her account holders.
These schemes are often for a selected protection and never as customizable as a person medical insurance plan can be, however the premiums are positively cheaper and infrequently have pre-existing protection from day one. That is what makes a bunch well being plan provided by a financial institution very enticing. There’s additionally a tax profit underneath part 80 D for the premium paid.
For the previous couple of years, banks had been allowed to accomplice with 3 insurance coverage firms within the life, common and medical insurance sectors respectively. So, there are a number of insurance coverage companions for all checking account holders to go for the group medical insurance plan.
Just lately, the Insurance coverage Regulatory and Growth Authority of India (IRDAI) launched the idea of portability in such group medical insurance schemes provided by banks. That is excellent news for account holders as the ability of porting would enable them to decide on between the accessible plans provided by varied insurers partnered with the identical financial institution. However, earlier than delving into the most recent tips issued by IRDAI on this context, let’s take a look at a number of the frequent options of such group medical insurance schemes –
Options of group medical insurance plans provided by banks
The group medical insurance plans provided by private and non-private sector banks have the next salient options –
- The protection is often mounted by the insurance coverage firm. In some circumstances, the shoppers may additionally be allowed the selection of the sum insured from the choices accessible solely
- The premium of the coverage must be paid by you, i.e. the account holder for which you’ll be able to declare an revenue tax deduction underneath part 80D
- The protection is on the market just for the prevailing account holders of the financial institution and you’ll take pleasure in protection for so long as you maintain an energetic account with the financial institution
- The premium charges are fairly low as in comparison with particular person well being plans
- Protection will be prolonged for dependents too at a further premium
- Pre-existing circumstances are, often, lined from the primary day itself with none ready interval. Nonetheless, some plans may need a ready interval which is often low
- There isn’t any pre-policy medical test up, as it’s often primarily based on a declaration of excellent well being
Now, after the brand new change in regulation, what’s in it for the account holders?
The brand new IRDAI regulation
In a round dated seventh October 2020, IRDAI allowed the advantage of portability in group medical insurance schemes provided by banks. In its tips, IRDAI has said that account holders can select to alter the insurance coverage firm of the group medical insurance coverage which they maintain with their financial institution.
This portability profit, nevertheless, is topic to the next phrases and circumstances –
- You may port or change your present medical insurance plan to a different insurer provided that the insurer provides a bunch medical insurance coverage to the shoppers of the identical financial institution.
- Porting is allowed between indemnity oriented medical insurance plans solely.
What are indemnity medical insurance plans?
Indemnity plans are these which cowl the precise medical prices suffered.
So, in case you are lined underneath an indemnity oriented group medical insurance scheme offered by means of your financial institution, you possibly can port to a different indemnity oriented medical insurance scheme with the identical financial institution however with one other insurer.
The porting of the coverage can be voluntary on a part of the account holder. Porting can be allowed provided that the policyholder sends an software to the financial institution and/or the insurance coverage firm to port the prevailing coverage
Porting is allowed solely on the time of renewal. You would need to submit a porting request at the least 30-45 days previous to the renewal date of the coverage.
Since these tips have come into impact instantly and you’ll select to port your present group medical insurance coverage if it comes up for renewal.
Time for excellent news for financial institution group well being clients?
Sure. The brand new tips said by IRDAI have made group well being schemes provided by banks extra enticing for account holders. Now, account holders can select an acceptable insurance coverage plan provided by one other insurer if they’re dissatisfied with their present protection or their service. This porting is freed from value and provides policyholders a alternative within the coverage that they’ll purchase in order that their protection doesn’t stop. Additionally this transformation would possibly give an impetus to the medical insurance penetration in India in order that extra folks can avail the protection with out having to fret about continuity.
By Dhirendra Mahyavanshi, Co-Founder, Turtlemint ( An InsurTech Firm)