One of the most effective ways to take care of your employees’ health is by offering a Group Mediclaim Policy. Not only does it provide financial protection during medical emergencies, but it also boosts employee satisfaction and retention.
If you're an employer or HR professional exploring group health insurance options, or even an employee curious about how these policies work, this guide will help you understand everything about a Group Mediclaim Policy in 2025.
What is a Group Mediclaim Policy?
A Group Mediclaim Policy is a type of health insurance offered by an employer to a group of individuals — usually the employees of a company. It covers hospitalization expenses, treatments, surgeries, and other medical needs of the insured group members.
Some policies also extend coverage to employees’ family members such as spouses, children, or even parents, depending on the plan.
Key Features of a Group Mediclaim Policy
Here are some common features you can expect:
✅ Cashless Hospitalization
✅ Pre and Post-Hospitalization Expenses
✅ Daycare Procedures Coverage
✅ Maternity Benefits (Optional)
✅ Coverage for Pre-existing Diseases (Usually from Day One)
✅ Add-on Riders for Critical Illness or Top-Up Plans
Why Companies Should Opt for Group Mediclaim Policies
1. Employee Retention and Satisfaction
Offering a Group Mediclaim Policy is a strong incentive for employees. It builds trust, loyalty, and increases job satisfaction, reducing attrition rates.
2. Tax Benefits for Employers
Premiums paid towards group mediclaim policies are eligible for tax deductions under Section 37(1) of the Income Tax Act as a business expense.
3. Affordable Premiums
Since the risk is spread across a group, the premiums are usually lower compared to individual health policies.
4. No Medical Checkups Required
In most cases, employees are covered without the need for pre-policy medical screenings, making it convenient and quick to implement.
Benefits for Employees
Zero or Low Premium Contribution: Some companies fully sponsor the policy.
Coverage for Family Members: Many plans include spouse, kids, or parents.
Cashless Treatment: Access to a wide network of hospitals with cashless claim facilities.
Day-One Coverage: Even pre-existing diseases are often covered from day one.
Mental Peace: Employees feel secure knowing their health expenses are taken care of.
Who is Eligible for Group Mediclaim?
Typically, the following can be included under a Group Mediclaim Policy:
Full-time employees
Spouse and dependent children
In some cases, dependent parents or in-laws
Contractual or temporary staff (optional under some plans)
How Does a Group Mediclaim Policy Work?
Policy Purchase: The employer selects a suitable insurance provider and policy type.
Enrollment: Employees are enrolled, often with minimal documentation.
Claims Process: If an employee needs treatment, they can either opt for cashless service at a network hospital or get reimbursement.
Renewal: The policy is typically renewed annually, with the employer covering the premium.
Things to Consider Before Choosing a Group Mediclaim Policy
✅ Coverage amount per employee or family
✅ Inclusion of maternity and critical illness benefits
✅ Hospital network strength
✅ Claim settlement ratio of the insurer
✅ Premium vs coverage comparison
✅ Flexibility to include add-on covers
Group Mediclaim Policy vs Individual Health Insurance
Feature | Group Mediclaim Policy | Individual Health Insurance |
Premium | Often lower | Higher |
Coverage | Standardized for all members | Customizable |
Portability | Not portable if you leave job | Fully portable |
Pre-existing diseases | Covered from Day One | Usually after 2-4 years |
Flexibility | Limited | High |
Conclusion
A Group Mediclaim Policy is not just a healthcare plan — it's an investment in your employees’ happiness and well-being. With the rising costs of medical care, this policy serves as a safety net, ensuring that your workforce feels secure and valued.
If you're an employer, offering this benefit can make your organization more attractive to top talent. If you're an employee, make sure you understand your coverage and leverage it for your and your family's health needs.
FAQs About Group Mediclaim Policy
Q1. Is a group mediclaim policy mandatory for employers in India?
No, it’s not mandatory for all businesses, but many offer it to attract and retain talent. For companies under the Employees’ State Insurance Act, some form of health benefit is required.
Q2. Can I continue the group mediclaim policy after I leave my job?
Usually no, but some insurers allow conversion to an individual policy.
Q3. Does group mediclaim cover maternity expenses?
Yes, some policies offer maternity coverage either by default or as an add-on.
Q4. Are pre-existing conditions covered in group mediclaim?
Yes, most policies cover pre-existing diseases from day one without a waiting period.
