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Is it advisable to purchase Group Health Insurance from my Bank or to purchase Retail policies?

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17 Oct, 2020 by  leo pold

Hi , Iam Leo age 39 looking for a floater insurance policy for my family ( 2 adults and 2 kids). Already Iam having my employer's insurance coverage for Rs 9 lacs for my family. Now I am planning for an additional floater for Rs 5 to 10 lacs from my self / individual part. Kindly suggest me whether it's advisable to purchase Group Health Insurance from my Bank or to purchase Retail policies. There is a vast difference in the premium amount when compared to both ( almost 70 to 80% difference in premium). But the features like NCB & Restoration facility is not available with my Banks Group Health Insurance. My Bank is Union Bank of India and they're having Tie up with Religare.

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2 Answer

17 Oct, 2020
We breathe insurance :)

Hello Leopold,

Here's an extract from one of our articles. In our view, you should not depend on a group insurance policy to cover your lifetime healthcare expenses, even if the costs are attractive.

These bank policies are group policies that have a very different structure from a retail policy. Here are some key differences you should understand before taking a call.
  • Group policies may not be renewed for a lifetime. Even if they do, the terms may not be in your control.
  • The benefits and terms of group policies are negotiated by the banks every couple of years. The bank can break ties and move you to a different policy that may have different terms and pricing altogether.
  • From our experience, we know that banks do not intervene in case of a service issue in a group policy. You are required to directly communicate with the insurance company or the TPA.
  • Since the pricing is tightly negotiated, claims are higher for the insurance company - the service in many cases may not be as good as retail policies.

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17 Oct, 2020
Co-founder, SureClaim

Hey Leo,

Only one advice. Never buy insurance from Bank.

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