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Insurance Analyser Series – Episode 5 – Corporate Health Insurance

In today’s corporate world, many employees are offered a comforting safety net: a corporate health insurance plan.

With a coverage limit of ₹5 lakh from your employer, you might wonder, “Is personal health insurance really necessary?”

It’s a valid question, especially when your job seemingly provides ample protection against medical emergencies.

However, delving deeper into the intricacies of health coverage reveals that relying solely on a corporate health insurance plan may leave you exposed to unforeseen risks and expenses.

In this blog, we will explore the features of corporate health insurance, its limitations, and why having a personal health insurance policy might be a prudent decision for comprehensive financial security.

Join us as we unravel the details of corporate health coverage and help you decide whether you should solely rely on your employer’s insurance or consider bolstering your safety net with personal health insurance.

What is a Corporate Cover?

A Corporate Health Insurance Policy is a type of group health insurance that covers professionals working for an organization.

It protects against illnesses, accidents, and other health issues, offering comprehensive coverage tailored to the needs of employees.

It ensures that employees can access comprehensive healthcare services without financial strain, promoting their well-being and productivity within the workplace.

Who is Covered Under a Corporate Plan?

Corporate health insurance plans usually cover the employee, their spouse, and children.

In some cases, coverage may extend to the employee’s parents for an additional premium, providing broader familial protection under the company’s healthcare policy.

This comprehensive coverage ensures that employees can secure healthcare benefits not only for themselves and their immediate family but also for their parents, reflecting a commitment to supporting the well-being of extended family members.

Benefits of a Corporate Cover

Senior Citizens Can Be Enrolled

Senior citizens often struggle to obtain health insurance due to pre-existing conditions.

Corporate health insurance policies usually make it easier for senior citizens to get covered.

No Waiting Periods

Corporate policies generally do not have waiting periods.

This means that employees with pre-existing conditions can enrol and make claims immediately.

Waiver of Medical Checks

These policies often waive the need for medical checks, which is particularly beneficial for senior citizens.

No Premium Payment

The employer pays the premium for corporate health insurance.

Employees only need to pay extra if they want to increase the sum assured or add another health plan.

Problems with a Corporate Cover

Caps on Room Rent, Co-pay, and Other Details

Group insurance policies typically have limitations such as:

  • Room rent caps
  • Co-pay requirements
  • Sub-limits on the treatment of specific diseases

Individual comprehensive policies usually do not have these limitations.

Changing Terms and Conditions

In a group policy, the employer can change the terms and conditions, including coverage, at any time.

In contrast, individual policies typically have more stable terms.

Coverage Amount

While a 5 lakh cover might seem adequate today, it may be insufficient in the future as healthcare costs rise.

Low coverage limits are a common issue with corporate policies.

Policy Tenure

Corporate health insurance is valid only while you are employed with the organization.

If your employment ends, so does your coverage, leaving you without insurance until you find a new job.

Should You Buy a Personal Health Insurance Policy?

Yes, you should have a personal health insurance policy in addition to your corporate cover. Here’s why:👇

  • Employment Termination: If your employment ends, your corporate policy lapses, leaving you without health insurance.
  • Future Health Issues: If you develop a serious disease after leaving your job, obtaining new insurance can be challenging. Insurers may be reluctant to cover you, especially as you age.
  • Comprehensive Coverage: Personal policies can provide higher coverage limits and more flexible terms, ensuring you are adequately protected in all circumstances.


While corporate health insurance offers several benefits, it also comes with limitations that could leave you underinsured.

Having a personal health insurance policy provides an additional safety net, ensuring continuous and comprehensive coverage regardless of your employment status.

*Disclaimer – This is for information purposes only and not investment advice. Data credit to the rightful source.