A Corporate Medical Insurance and Family-floater Insurance are both plans for a group of people and serve the same purpose of providing cover for a group – of employees or family members. In a Corporate Medical Insurance, the employer bears all the cost to cover the employees, while in Family-floater Insurance you as an individual can insure your spouse, two children and parents or in-laws under one plan. The cost of such plans depends upon the number of insured members, coverage extent, sum insured and also the age of the insured members. For both the sum insured as well as the benefits are equally divided among insured group members. Though the two group insurance plans sound similar, yet there are certain vivid differences between the Corporate Medical Insurance and Family-floater Insurance. What are they… let’s have a look;
Feature |
Corporate Medical Insurance |
Family-floater Insurance |
Purpose |
Covers employees of organization |
Covers family members |
Extent of coverage |
Employees and dependants |
Immediate family members and in-laws |
Cost |
Any additional coverage is borne by employee |
Full cost is paid by one main individual member taking the policy for his/her family |
Eligibility |
Till the time employee works for the particular organization he shall be covered under the plan |
Any person above age 18 years can buy a Family-floater health insurance plan for self and family |
Tax |
Employee cannot claim tax as health insurance is taken by employer only |
The person who paid the premium for the family cover insurance can avail of a tax benefit under Section 80D of the IT Act in India |
Claim settlement |
Claim settlement is done by Third-party Administrator - TPA appointed by the insurance company |
Claim settlement is done by Third-party Administrator - TPA or by the insurance company itself |
Plan exit |
Leaving the organization by exit, termination or retirement means leaving the insurance plan |
Reaching exit age, non-renewal of policy and death means leaving the family coverage plan |
Major benefit |
Employers pay for the plan |
One health insurance plan for whole family is easier to manage |
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There are multiple factors to consider when buying group health insurance plans like corporate plan or Family floater policy. The significant parameters to look out for include;
Conclusion
You must utilize the different types of plans to match your needs optimally. There are many plans available from you to compare and choose from. Group insurance plans like Corporate or Family floater help get cover easily and manage any financial burden with security intact. So, choose and opt wisely!
FAQs – Frequently asked questions.
Let's take a look at some frequent queries on Corporate Medical Insurance and Family-floater Insurance;
Q1. Is ‘floater’ in Family-floater health insurance, a flexible benefit?
Yes, floater’ refers to the flexible benefit shared by the insured members under the plan. The sum insured and coverages are not fixed for any particular family member.
Q2. Can Individual health insurance policy be converted into a corporate plan?
No, it is not possible as the insurance provider may be different and also the corporate plan cost is borne by the employer only.
Yes, claim against corporate policy can get rejected if you did not disclose correct information while availing policy cover, make a false claim or claim against an event not covered under your health plan or if you do not follow the claim process correctly. Always read the terms before claiming for any plan and understand your policy to know the right coverage and other essential parameters.