HR Terminology
Medical Insurance
Medical insurance is a financial safety net that covers the cost of medical and surgical expenses for an individual or their family.
Medical insurance provides access to quality healthcare by mitigating the financial burden associated with illnesses, injuries, or preventive care. Depending on the policy, medical insurance can cover a wide range of services, including doctor visits, hospital stays, diagnostic tests, prescription medications, and even wellness programs.
Employers often offer group medical insurance as part of their benefits package to attract and retain top talent. Beyond its financial advantages, medical insurance fosters a healthier workforce, leading to increased productivity and employee satisfaction.
Key features of medical insurance typically include:
In-patient and outpatient coverage: Covers expenses for hospitalisation and treatments that do not require admission.
Preventive Care: Includes routine check-ups and screenings to detect potential health issues early.
Cashless Treatment: Enables direct settlement of medical bills at network hospitals without upfront payments.
Add-ons and Riders: Offers options like maternity benefits, critical illness cover, and dental care to tailor the policy to individual needs.
FAQ
Group Medical Insurance is typically provided by employers to cover their employees under a single policy, often at a lower premium. Individual Medical Insurance, on the other hand, is purchased by individuals for personal coverage and can be customised to meet specific needs.
Providing medical insurance enhances employee satisfaction and loyalty, reduces absenteeism by promoting timely medical care, and helps organisations build a strong employer brand.
Employees should consider factors like coverage limits, network hospitals, waiting periods, pre-existing condition clauses, and add-on benefits to ensure the policy meets their needs.
Yes, many medical insurance policies allow employees to include their dependents, such as spouses, children, and even parents, under the same plan, offering comprehensive family protection.
Cashless hospitalisation simplifies the treatment process by eliminating the need for upfront payments. Employees can receive treatment at network hospitals without financial stress, as the insurer directly settles the bill with the hospital.
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