Page 110 - Group Insurance and Retirement Benefit IC 83 E- Book
P. 110
individual health insurance policy when the policy is up for renewal, which it may do if
the person's risk profile changes (though some states limit the insurance company's
ability to non-renew after the person has been under individual coverage with a given
company for a certain number of years).
In Canada group insurance is usually purchased through larger brokerage firms because
brokers receive better rates than individual companies or unions. There may be slight
differences in terms of administration and market related practices world wide, even
though the concept may be the same. For example, In India, broker procured group term
insurance, unlike Canada, does not intrinsically have any price advantage to the buyer i.e.
the Master Policy Holder.
Group Life Insurance covers may be either compulsory - in which case every member has
no say in opting for the cover or voluntary where all eligible members may decide within
an enrolment window to opt for the available Group Insurance. This is irrespective of
who pays the premium.
Since compulsory covers offer no scope for adverse selection they come with far
relaxed underwriting requirements than voluntary covers, Underwriting requirements
even for Voluntary Group Life Covers are far lower than the respective requirements for
individual lives.
Group Health Insurance is also provided in India. It provides healthcare coverage to a
group of people belonging to a common community (typically as employees of a
company). These plans are generally uniform in nature, offering the same benefits to all
employees or members of the group.
Most professionally run companies today provide Group Health Insurance as a part of
their Employee Welfare program. Each company however gets the plan customized based
on the employee demographics.
