Buying a group medical insurance policy for employees is a critical task for employers, which they must undertake after careful consideration and research. Several key terms and conditions of the policy must be understood before proceeding.
The free look and grace period in the group mediclaim policy is designed to help policyholders make an informed decision, maximise their benefits, and address any doubts. Here, the article discusses how the free look and grace period work in a group mediclaim policy.
What is the Free Look Period?
The free look period in small business insurance, similar to the one in group health, is a provision that allows policyholders to review policy terms and conditions for a specified duration after receiving the group insurance policy documents.
Typically, the free look period lasts for 15 to 30 days, giving policy buyers an opportunity to review all the policy documents and cancel it without any penalty if they find it unsatisfactory. It is a risk-free opportunity to evaluate whether a policy aligns with their business needs.
How the Free Look Period Works in Group Health Insurance?
The working of the free look period is quite straightforward. After the policy buyer receives the policy documents, the free-look period begins. During this time, policy buyers can review and understand policy details, including premiums, coverage benefits, inclusions, and exclusions.
During the free look period, if employers do not find the policy suitable for their organisation’s needs, then they can return it without any penalty. The premium paid is usually refunded after adjusting for the amount spent on charges such as medical exams or risks covered during this period.
Through the free look period policy, buyers gain an understanding of the importance of consultation and policy review, enabling them to make informed decisions.
What is the Grace Period?
The grace period in group mediclaim insurance is a provision that allows the policyholder an extra 30 days to make their premium payment after the original due date, without incurring a policy lapse.
The grace period ensures that employees have policy coverage during any financial constraints that might occur from the employer’s end.
How the Grace Period Works in Group Health Insurance?
The grace period in small business insurance, like group health insurance, begins after the original due date for the policy premium has passed. Typically, the grace period is around 30 days; however, this may vary from one insurer to another. Therefore, it is essential to verify the grace period with the insurance provider.
It should be noted that during the grace period, the policy is fully functional and provides coverage as it is. However, once the grace period expires without a premium being paid, the policy will lapse, leaving employees without coverage.
Thus, employers must pay the premium before its due date. Even when they face financial difficulties, they must try to pay the premium within the grace period.
Summing Up
Understanding the intricacies of group mediclaim insurance terms, such as free look and grace period, is crucial for businesses that provide coverage to their employees. Using these provisions, they can get enough time to review the policy terms and avoid any payment lapses.
However, it is always wise to confirm with the insurance provider about the provisions they offer and choose a reliable insurer, such as TATA AIG. They provide small business insurance, including a group health policy, which offers benefits such as inpatient treatment, maternity benefits, hospitalisation expenses, and more.
