Insurance activity, be it Personal or Corporate, generally tend to take a back seat. How ever, we all know that it is necessary for Financial Security and Peace of Mind. Yes! Your Insurance Costs, if managed well, can get your fantastic savings … If you want your business insurance costs to go down with minimum hassles, try the following five key things
The requirement of Insurance: Understand what your main requirement is and what do you want to achieve by taking Group Health Insurance. If your requirement is to cover your employees in case of the accident only then a basic or standard health Insurance shall suffice your need. On the other side you want the employee and family to get best of the benefits in case of any medical emergency, then choose a policy with comprehensive features like Pre-existing cover, Maternity Cover, no room rent capping…etc
Zeroing on Adequate Sum Insured: After finalising the Insurance requirement next step should be concluding on adequate Sum Insured. Mediclaim requirement of a Vice President may be different from the medical requirements of a fresher because of the different lifestyles they cater to. However, few companies prefer the standard cover to keep away the feeling of differentiation between employees despite their grades.
Benefit Extension to Dependants: Insurance can become an expensive proposition if the claims are not controlled properly. Claims for parents tend to make the entire policy very expensive in long run. Benefit once given and later withdrawn may also not go very well with all the employees. So design the policy keeping future in mind.
Co-Pay or Employee’s Contribution: If you cannot reduce the coverage or limit the benefits extension to employee only, then co-pay may give you some breather. Co-pay will enforce employee to bear some share of the total claim amount. In such cases, employee may also negotiate better with Hospitals for lower medical bills to ensure that hit on his pocket is less.
Budget your Insurance: There two ways of taking the policies
(a) You take the best features and pay the best-negotiated premium. It can be over and above your desired budget or may be steep rise only or premium as per market standards
(b) You design the policy to fit your budget but at the same time covers the fundamental and critical emergencies for your employees.
Hope this fine tips will help you to design your Health Insurance policy and make it more effective.