I want to know how the basic health insurance plans from general insurance companies differ from the group insurance plans offered by banks? Also compare bank Mediclaim policies.
- Venkat
You can buy a basic health insurance policy directly from a general insurance company. If required by the insurer, you will have to undergo a medical check up before buying a plan. The premiums would be based on your age and health condition.
Banks usually tie up with an insurance company (mostly public sector insurers) to offer a group health insurance cover to a specific group of people like its employees, and /or ex-employees, or its customers. The group insurance policy is issued in name of the bank. Such plans usually do not need any pre-policy medical check up. However, an applicant has to provide full details of the condition of his health to the prospective insurer.
These plans are economical, as they get a discount because of the bulk deal. These plans are also useful for people who are otherwise denied a cover by insurers, as such people might get an insurance cover through this channel. It has its limitations, too. One of the major drawbacks is that bank and insurer may part ways and the bank may tie up with a new insurer. The new insurer always need not offer the same benefits and coverage. The new insurer may also charge a higher premium. It is also crucial to check whether the policy provides life-long policy renewal as it becomes very difficult to buy a new policy with advancing age.
A comparison of all the group plans available would not be useful as they are are available only to people who have some link with a particular bank. You can buy a group plan from the bank only if you have a relationship with it.
This article was originally published on November 06, 2015.
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