Page 91 - Ebook health insurance IC27

Sashi Publications

Usually the group insurance cover is granted to employer-employee groups. The
cover may also be granted to groups such as
 Labour union
 Trust and societies
 Multiple employer groups
 Franchise dealers
 Professional associations
 Clubs and other fraternal organisations

Additional considerations for other than employer-employee group
 Size of group as the small size of groups are volatile
 Differential health care cost in different geographical regions
 Risk of adverse selection
 Persistency of members in the group

IRDA has issued group insurance guidelines with a view to rationalise the approach
adopted by insurers in dealing with various groups.

Aim of the guidelines
 Stop formation of groups for the sole purpose of availing group insurance
 See that group is not formed for coverage of benefits not available in individual

policies
 Since the premiums in individual policies are high groups are not formed for saving

the premium.
 Stop any company or intermediary for selling cheap insurance in disguise of group

insurance.

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