Group Health Insurance Expiry & Renewal: Everything You Need to Know

Learn about Group Health Insurance expiry and renewal, the process, key considerations, and tips to ensure uninterrupted coverage for employees.
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3 min
27-March-2024

Group health insurance is an essential benefit provided by employers to ensure the well-being of their employees. However, this coverage comes with a policy term and must be renewed on time to continue its benefits. If a group health insurance policy expires, employees and their families may lose financial protection against medical emergencies. A lapse in coverage can lead to financial burdens, especially during unexpected hospitalisations. Renewing the policy on time ensures continuous access to healthcare facilities and prevents any break in coverage. Understanding the renewal process, required documents, and common mistakes can help in hassle-free renewal. Employers should carefully assess the plan, compare different policies, and ensure compliance with regulatory norms to secure the best coverage for their workforce. This guide will provide complete details on what happens when group health insurance expires, how to renew it, the documents required, mistakes to avoid, and how to choose the right plan.

What happens when group health insurance expires

When a group health insurance policy expires, employees and their dependents lose the coverage and benefits associated with the policy. This means they will not be able to claim expenses for medical treatments, hospitalisation, or other healthcare-related costs. Without timely renewal, employees may have to bear medical expenses out of pocket, leading to financial strain. Additionally, if an employee develops a medical condition after the policy lapses, they might face difficulties in getting coverage under a new policy or may have to pay higher premiums. Employers must ensure renewal before expiry to maintain uninterrupted coverage. Some insurers provide a grace period, but failure to renew within this time can lead to policy termination. In such cases, reapplying may require fresh underwriting, and past benefits or accumulated advantages may be lost. Ensuring timely renewal safeguards employees’ financial security and provides continuous access to medical care without unexpected expenses.

Pro Tip

A comprehensive health plan not only covers hospitalization but also pre & post-treatment expenses, ensuring complete financial protection against rising medical costs.

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How to renew group health insurance before expiry

Renewing group health insurance before expiry is essential to ensure continuous medical coverage for employees. Here are the steps to renew the policy:

  • Review the existing policy: Check the current coverage, premiums, and benefits to identify any required modifications.
  • Assess employee needs: Evaluate the workforce's healthcare requirements and ensure the policy aligns with their needs.
  • Compare policies: Explore different insurers and plans to find better coverage options or premium rates.
  • Get quotes from insurers: Request premium quotations from various insurance providers and compare them.
  • Submit renewal request: Inform the insurer about the renewal decision and submit the necessary documents.
  • Make the payment: Pay the renewal premium before the due date to avoid policy lapses.
  • Verify policy details: Once renewed, ensure that all details, including sum insured and covered benefits, are correct.

Renewing on time prevents disruptions in coverage and ensures continued access to medical benefits for employees and their families.

Documents required for group health insurance renewal

For a smooth renewal process, employers must provide the following documents:

  • Previous policy documents – Copies of the existing group health insurance policy for reference.
  • Employee details – An updated list of employees covered under the policy, including their dependents.
  • Claim history report – A summary of claims made during the previous policy term, if required by the insurer.
  • Renewal proposal form – A completed renewal application provided by the insurance provider.
  • Payment proof – A copy of the transaction receipt for the renewal premium payment.

Submitting these documents on time ensures a hassle-free renewal process without any delays.

Common mistakes to avoid during renewal

  1. Missing the renewal deadline – Delays can lead to policy lapses, causing employees to lose coverage.
  2. Ignoring policy upgrades – Not reviewing coverage options may result in outdated benefits.
  3. Providing incorrect employee details – Any mismatch in records can lead to claim rejections.
  4. Not comparing different plans – Sticking to the same insurer without reviewing market options might mean missing out on better policies.
  5. Overlooking compliance requirements – Failing to adhere to regulatory guidelines can cause legal issues.

Avoiding these mistakes ensures that employees continue receiving healthcare benefits without any disruptions.

Benefits of timely group health insurance renewal

  1. Continuous medical coverage – Employees and their families remain insured without interruptions.
  2. No waiting period issues – Renewing on time ensures no reset of waiting periods for specific treatments.
  3. Tax benefits for employers – Premiums paid for group health insurance are tax-deductible.
  4. Improved employee satisfaction – Ensuring uninterrupted health coverage boosts morale and retention.
  5. No need for fresh underwriting – Employees avoid medical checkups or increased premiums due to lapses.

Renewing on time maximises benefits for both employers and employees while ensuring financial security.

How to choose the best plan during renewal

  1. Compare multiple insurers – Evaluate different policies for better coverage and premium rates.
  2. Check network hospitals – Ensure the insurer has a wide network of cashless hospitals.
  3. Consider policy add-ons – Look for additional benefits like maternity cover, OPD expenses, and critical illness coverage.
  4. Assess claim settlement ratio – A higher claim settlement ratio ensures smoother claims processing.
  5. Review premium affordability – Choose a plan that balances premium costs with adequate coverage.

Selecting the right plan during renewal helps employers provide the best healthcare support for their workforce.

Conclusion

Renewing group health insurance on time is crucial for maintaining continuous medical coverage for employees and their dependents. A lapse in coverage can lead to financial strain, loss of benefits, and difficulty in obtaining future insurance. Employers should carefully evaluate policy terms, compare options, and ensure compliance with regulatory requirements before renewal. Timely renewal not only secures uninterrupted healthcare access but also provides tax benefits for employers and boosts employee morale. By following a structured renewal process, reviewing policy details, and selecting the best coverage, businesses can safeguard their workforce's well-being while maintaining financial stability. Ensuring a smooth renewal process strengthens employee trust and helps organisations offer comprehensive healthcare protection.For those seeking a convenient and reliable way to explore health insurance plans, consider Bajaj Finance Insurance Mall. We partner with numerous insurers, providing a diverse selection of health plans to cater to varying needs and budgets. Our online platform allows you to effortlessly compare policies, and select the ideal plan to safeguard your health and finances. With Bajaj Finserv, securing the right health insurance coverage is a hassle-free and informed decision.

Frequently asked questions

What is the renewal process for Group Health Insurance?
The renewal process involves reviewing policy terms, updating employee details, and paying the premium before expiry. Employers should compare available options, ensure compliance with regulations, and submit required documents. Timely renewal helps maintain uninterrupted coverage and benefits for employees.

Can a lapsed Group Health Insurance policy be renewed?
Yes, a lapsed Group Health Insurance policy can be renewed within the grace period by paying the pending premium. However, insurers may impose waiting periods, higher premiums, or require fresh underwriting. If the grace period expires, a new policy must be purchased.

What are the penalties for late renewal of Group Health Insurance?
Late renewal can result in coverage lapses, loss of continuity benefits, and waiting periods for pre-existing conditions. Insurers may impose higher premiums or require fresh underwriting. Employees might lose medical expense reimbursements during the gap period.

How to compare different Group Health Insurance plans during renewal?
Compare plans based on coverage, premium costs, network hospitals, claim settlement ratio, and additional benefits like wellness programs. Consider employee needs, policy exclusions, and insurer reliability. A thorough comparison ensures better coverage and cost-effectiveness.

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*T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Life Insurance Corporation of India (LIC), Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Co. Limited , Star Health & Allied Insurance Co. Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limitedunder the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also a distributor of other third party products from Assistance Services providers such as CPP Assistance Services Pvt. Ltd., Bajaj Finserv Health Ltd. etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective Assistance service provider company.



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