How Group Health Insurance Works

A single policy covers all employees (and optionally their families). The employer pays the premium — either fully or with employee co-payment. There's no medical check-up required, and pre-existing conditions are covered from day one in most plans.

Group vs Individual Health InsuranceFeatureGroup HealthIndividual HealthPremium40-60% lowerStandard ratesPre-existing coverDay 12-4 year waitingMedical check-upNot requiredRequired (age 45+)PortabilityLost on job changeLifetimeCustomizationLimitedFull choiceSum insured₹3-10 Lakh typical₹3 Lakh - ₹1 CroreTax benefitCompany: business expenseEmployee: tax-freeSection 80DWhat to Look for in a Group PolicyRoom rent limit: Negotiate no room rent capping for better claim experience.Maternity cover: Essential for companies with young workforce. Usually ₹50,000-1 Lakh.Day care procedures: Ensure 400+ procedures covered including dialysis, chemotherapy.Domiciliary hospitalization: Coverage for home treatment when hospital admission isn't possible.Network hospitals: Larger network = more cashless options for employees across cities.Family coverage: Self + spouse + 2 children minimum. Some plans include parents at extra cost.Best Group Health Insurance ProvidersProviderMin EmployeesKey FeaturesAnnual Premium/Employee*ICICI Lombard7+Wide network, maternity cover, OPD₹4,000-8,000HDFC ERGO10+Flexible plans, dental, wellness₹5,000-10,000Star Health20+No sub-limits, day care₹3,500-7,000Bajaj Allianz7+Quick claim settlement, app₹4,500-9,000Care Health10+Customizable add-ons₹3,000-6,000*For ₹5 Lakh cover, ages 25-40. Varies by industry and claim history.Frequently Asked QuestionsShould employees buy separate health insurance despite having group cover?

Absolutely yes. Group insurance ends when you leave the company. It typically offers only ₹3-5 Lakh cover which is insufficient. Buy a personal policy while young (lower premium) + Super Top-Up for high cover.

Can startups get group insurance with just 5 employees?

Yes, several insurers (ICICI Lombard, Bajaj Allianz) offer group policies for as few as 7 members. Some digital-first insurers like Plum and Nova Benefits cater specifically to startups with flexible plans.

Group Health Insurance for Employers: Complete Guide to Employee Medical Cover

By Admin • Feb 23, 2026 • 📖 4 min read • ✅ Updated Feb 23, 2026

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Insurance & financial content specialist at PolicyBaazar. Helping Indians make informed insurance decisions with expert analysis and unbiased reviews.

📅 Published: Feb 23, 2026 🔄 Updated: Feb 23, 2026 📖 830 words ⏱️ 4 min read

Group Health Insurance for Employers: Complete Guide to Employee Medical Cover

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