Assigning Insurance Group Numbers

Introduction

The current times have depicted how important it is to maintain good health. It is not every day that individuals have the privilege to research and choose the right insurance for themselves. In the current market, there are a variety of insurance agencies that provide individuals with a group mediclaim policy. The organisations offer the group insurance to attract and retain talented employees. The safety and well-being of the workforce is a crucial factor that needs to be taken care of by the organisation. 💯

Most leading organisations ensure that they have the right mix of policies in place for employees’ well-being. Policies are specifically designed and can be customised, keeping in mind the needs and requirements of the majority workforce at large. Given the rising medical costs, organisations have realised that covering maximum employees in the group plan will help them save costs. Other than the cost, the wide coverage provided by the insurance agencies in the plan proves to be of great advantage. The premium cost is also quite competitive if a group plan is taken. ✔

The guidelines given by the IRDA define two types of group insurance plans, and these are- employer-employee and non-employer-employee. In which case either of the following can be included under the plan-individuals of the same social or cultural group or joint holders of a credit card or bank account. 💡

Points To Be Kept In Mind When The Individual Decides To Make A Choice To Be A Part Of A Group Mediclaim Policy: 💭

• The policy will be issued in the name of the group or association that the individuals are a part of the contract.📃
• The policy will be issued to the Manager of the group.
• If an individual participates in a non-employer-employee group policy, then they are entitled to receive a certificate of insurance as a record.
• The certificate of insurance consists of the following information-details of benefits of insurance available to the holder, premium cost levied, and terms and conditions to be followed.
• One of the crucial points to note in case of a group plan is that once the employee leaves the group, the cover can cease to exist.
• There is a high probability that the insurer can offer the holder an individual cover which can be in continuation of the group policy.
• It is the responsibility of the manager of the association to make all the members aware of their rights and contributions.
• The manager as per the role is supposed to pass on the information regarding the premium rate, discount offered, terms and conditions of the plan.
• The manager has to ensure that the discount offered is availed by all members of the group and there should be no lapses.
• If the manager is collecting any sort of administrative charge other than the premium cost levied by the agency, then that needs to be duly disclosed.

How Are The Insurance Numbers Assigned In A Group Mediclaim Policy? ✍🏻

• There are several factors which are taken into consideration before assigning the insurance numbers in a group plan.
• Some of the factors are as follows-the type of insurance plan, company size, the type of clients, the client size, the company’s computer technology and how advanced it is.
• Most of the organisations have their numbering conventions in place which is based on the employee ID card number sequence.
• Several companies have various numbering conventions defined in their system, which helps to allocate the group plan numbers to every member joining the group.
• It is preferred that the numbers follow a defined sequence and are given serially to the employees.
• Employees on their part can inquire about the existing system of the organisation from the administrative department or the functional heads. Proper information can be given to the employees upon their joining. 😁
• Employees are required to submit their documents for verification and for record purposes. The database department stores all the necessary information after it has been duly evaluated and verified, and then assigns the number to the next employee in line.
• Generally there are main groups which have either 4 digit group numbers or more. In case the company size and employee strength is large, then +/- 00 numbers can be added as per need.
• Since the entire process is computerised the changes for additions are incorporated directly into the system first. The system later assigns the group numbers to the employees.
• There are situations wherein if two entities get into a merger, either a default computer system of the larger entity is continued and another entity gets merged into it, or else, a new system is developed keeping in mind the various groups such as dental insurance, life insurance, etc.
• Since the evolution in technology, it has become easier to upgrade the system to suit growing requirements and keep it updated.

Conclusion

Group mediclaim policy is considered one of the significant factors that attract a quality set of employees and help them to grow. Employees are required to keep an eye on the terms and conditions and have an alert mind for attention to detail. Group Insurance is therefore termed to be employer-employee insurance as it proves to be beneficial to both parties.