We don't spam
Expert advice made easy
28 Apr 2022 by Policybazaar
19254 Views
Group Health Insurance
₹1 Lakh cover starts @₹110/month/employee+
Serving with Pride
- Home
- Commercial Insurance
- Group Insurance
- Group Health Insurance
- Group Health Insurance Refund Policy
Group Health Insurance Refund Policy
As per a survey conducted by ET money, more than 45% of health insurance policyholders are not satisfied with the coverage. A similar scenario is has been observed among the group health insurance policy buyers. It is important for any employer purchasing a group health plan to learn about the coverage and understand if the employees will be satisfied with it or not. However, it becomes equally important to know about the cancellation of the group health insurance plan in case of cancellation of the policy.
Cancellation Of Group Health Insurance By Policyholder
It is suggested to learn about the coverage while purchasing a group health insurance policy. In case you have purchased a group health insurance policy and find that the employees are not satisfied with the coverage then you just have to inform the insurer prior cancellation of the policy. Most of the insurance companies have a notice period of 30 days but it varies from one company to another.
Group Health Insurance Premium Calculator
Who do you want to insure?
- Employees
- Employees & their family
Minimum lives should be 7
Include maternity coverage
What you need to understand here is that your employee will not be able to raise a claim during the notice period. In this case, it is suggested to keep a backup option ready so that any of the employee willing to raise a claim can do so and get proper coverage for the hospital expenses.
Once the notice period is over, the insurer will cancel the group medical insurance and refund the premium amount that was not utilized during the tenure that will exclude service tax. Also, remember that the insurer will only give you the refund when none of your employees has raised a claim during the policy tenure.
The refund of the premium amount also depends on the time passed since the initiation of the group health plan. It means that if the policy duration of your insurance plan is about to end then you may not get any refund. Have a look at the table below to under the percentage of refund you would get after the cancellation of the group health insurance plan.
Percentage of Refund On Cancellation
|
Time Spent (In Days) |
Policy Term One Year (1% Refund Premium) |
Policy Term Two Years (1% Refund Premium) |
|
Up to 90 |
100% |
100% |
|
91 to 365 |
A refund will be provided based on the number of days left. |
A refund is provided based on the number of days left. |
|
366 to 455 |
Not Applied |
25% |
|
456 to 545 |
Not Applied |
12% |
|
Crossing 545 days |
Not Applied |
0% |
Automatic Cancellation of Group Health Insurance Policy
The insurance company automatically cancels the group health insurance plan in case of the sudden demise of the insured. Then the insurer makes the refund on the basis of above mentioned parameters. Also, if the insurer has raised a claim then no refund will be provided.
For instance, Ramesh works under the ABC company. During the course of his employment, he has raised a claim once. Due to his sudden demise, the insurance company cancels the insurance policy. Since he has raised a claim once the insurance company will not provide any refund.
Cancellation of Group Health Insurance By Insurance Company
The insurance company can cancel your group health insurance policy. For that, they too have to provide a 30 days notice period. They will also have to refund the unused premium amount only if no claims have been raised during the policy tenure. The parameters of the refund stay the same.
Dishonest Act By Insured
If any person on behalf of the insured or the insured person himself has acted dishonestly, the insurer can cancel the policy.
Misrepresentation of Material Facts
If the insured has not represented the material facts transparently, the insurer can cancel the group health insurance plan.
Non-Renewal of Insurance Policy
Not renewing the insurance policy on time is one of the reasons why the insurer cancels the group insurance plan. If the insured does not renew the insurance policy before the expiry date, the insurance plan lapses, however, the insured gets a grace period during which he/she can renew the insurance plan to get continuous coverage under the group health insurance policy.
FAQs About Group Health Plan Cancellation
-
Q1: Can the insurer cancel the group health insurance policy?
Ans: Yes, the insurer can cancel the group health insurance policy, in case the insured does not renew the policy even during the grace period, in case of any kind of dishonest act by the insured towards the insurer, in case of misrepresentation of facts while purchasing the policy and the insured finds out about it.
-
Q2: How much premium is refunded if the insured cancels the policy within 90 days of the policy tenure?
Ans: The insurer has to provide a 100% of refund if the insured cancels the group health insurance policy within 90 days of the policy tenure.
-
Q3: What if an employee raised a claim during the policy tenure, will the insured still be eligible to get any kind of refund on the cancellation of the policy?
Ans: No, if any of the employees have raised a claim before the cancellation of the group health insurance policy, the insurance company will not provide any kind of refund.
Group Health Insurers
Disclaimer: Above mentioned insurers are arranged in alphabetical order. Policybazaar.com does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
Group Health Insurance
View more insurers
Disclaimer: Above mentioned insurers are arranged in alphabetical order. Policybazaar.com does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
Other Insurance
Group Health Insurance Articles
GIPSA stands for General Insurance Public Sector Association.It is a group of four General insurance companies...Read more
Under Section 37(1) of the Income Tax Act, 1961, an organization can apply for tax exemption on the premiums paid...Read more
29 Nov 2022 by Policybazaar
10951 Views
Extended work hours or working on holidays and weekends have become common in workplaces. Compensatory leave for...Read more
18 Apr 2024 by Policybazaar
2835 Views
The employer-employee insurance scheme is a valuable benefit for businesses, providing financial support to...Read more
05 Oct 2020 by Policybazaar
23758 Views
GPA (Group Personal Accident) and GMC (Group Medical Coverage) are two popular types of insurance policies often...Read more
01 Jun 2023 by Policybazaar
10494 Views
In today’s fast-paced world, the conversation around mental...Read more
20 Nov 2024 by Policybazaar
37 Views
Postpartum depression is a serious mental health condition...Read more
05 Nov 2024 by Policybazaar
75 Views
In India, mental health issues are on the rise, with studies...Read more
18 Oct 2024 by Policybazaar
123 Views
Mental health issues have become a pressing concern worldwide...Read more
18 Oct 2024 by Policybazaar
103 Views
Startups and tech firms, once symbols of growth, now face...Read more
10 Oct 2024 by Policybazaar
164 Views
Thank you
Our experts will provide you assistance with your
insurance coverage. Be assured, all your questions
will be answered
insurance coverage. Be assured, all your questions
will be answered
Disclaimers+
Insurance
Calculators
Payment Methods
Secured With
Follow us on
