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Is Your Medical Insurance from the Employer Enough for your Medical Needs?

Community Manager

Given how medical cost is shooting it’s vital for an individual to have a medical insurance with adequate coverage. Today it’s more of a necessity than a choice. Not having a medical insurance policy can invite series of unwanted problems. Along with emotional uproar, medical and financial burden can easily leave one helpless and in a vulnerable condition. However, getting an insurance policy is not the sole criteria after all it should be a well-researched, appropriate and a seamless combination of some of the finest policies available in the market.




Increasing cost of living, medical expenditures, and a constant fear of catching diseases has made medical insurance inevitable. The penetration of health insurance in India is very low. As per the Insurance Information Bureau of India, with 1.25 billion populations, less than a fifth is covered under any kind of insurance company. Surprisingly, even those who are covered have a minimal coverage of below Rs 2 lakhs.


Many people those who are employed live under the misconception that the coverage provided by the employer is going to be enough.


However a group policy comes with its own restrictions…….lets look at some of these..


  • It is not a mandate that one may be always secured with a cover as an employee
  • One does not have a choice to select coverage, sum insured, members example including family or dependant parents
  • During changes in jobs, one loses coverage continuity and hence may require to serve the waiting periods all over again for having a full blown cover

And there are many reasons supporting the need for additional medical cover along with employer’s medical insurance. Let’s read through some of the reasons for it.


In India, there’s no compulsion on employers to provide employees a medical insurance policy. It’s up to the employer to provide for it or leave it.


The health insurance coverage provided by the Indian employer is not enough for the entire family or might not have the benefits one is looking for. Thus, there are increased chances of spending from savings in case of an emergency. Also, the insurance cover provided by the employer is only effective till the time one is employed in the same company. Imagine a situation, where one joins a new job and the employer doesn’t provide an insurance policy, or the company decides to give pink slips; in such situations a person without any medical plan can easily experience both emotional and financial blow.


Most insurance policies have a waiting of up to 4 years on pre-existing illnesses/ailments. In case one changes employment then for a health insurance policy with the new employer the waiting period will start again. It is always advisable to have an individual policy for self and family to cover risks on all pre-existing and other illnesses.


In India, family plays a very important role. Family bond is one thing that makes our country so close yet different. Many a times, the employer’s policy might not cover your entire family. The basic intent behind buying a medical insurance is to safeguard an individual along with wife, children and parents. Else in case of an emergency, all the savings can get finished. 


Compared to western countries where employers take onus to provide medical benefits to its employee  In India, an employer provides medical insurance primarily to retain the employees as well to maintain a cordial relationship. At any given point, an employer can refrain from paying premium amount as per his needs and without much worry about legal implications.


As discussed above, an employee gets medical benefits till the time he or she is apart of a particular organization. Thus, Medical relief after retirement becomes an area of concern. Along with medical benefits from the employer it’s essential to have a medical policy to cover old age related health disorders. It’s been observed that most of the old age health problems occur due to pre-existing health disorders/conditions. Buying a new policy after age of 50/60 can double the problems and make the medical condition even worst from bad. A new policy won’t even cover the “pre-existing diseases” and to top it the insurance company won’t be liable or take charge of any mishap.It’s advisable to get a medical insurance policy at a much younger age so that it automatically covers old-age related ailments.


A medical insurance policy cover provided by the employer is not enough, financially. With all inclusions and exclusions, mostly the covers varies from Rs 1 lakhs to 2 lakhs. In case of critical illnesses hospitalization, this won’t suffice and only double your financial burden.


In such circumstances, a standalone health policy of your own can actually act as a blessing in disguise.