Losing your job can be overwhelming. Beyond the immediate stress of financial uncertainty, one of the biggest worries for many employees in India is the loss of several other perks. For most working professionals, group mediclaim policy is not just an additional perk; it is the only form of health coverage they have.
This means that a layoff doesn’t just impact your paycheck. It also leaves you and your family vulnerable to high medical expenses. With hospitalisation costs in India rising steadily, being uninsured even for a short period can be financially devastating.
But the situation isn’t hopeless. By acting quickly, understanding your rights and making informed decisions, you can ensure that your family stays protected and your health insurance premiums remain manageable even after a layoff. Here is a guide on managing your group health insurance (GHI) premium after a layoff.
Do You Need to Pay a Premium After a Layoff?
When an employee leaves the company or is laid off, the corporate health insurance policy becomes inactive, meaning no premiums are due and benefits stop. To maintain the policy, employees may migrate the plan into an individual health policy or port it to another insurer, but they must bear the premium costs.
Employers usually inform the insurer about policy discontinuation, and coverage ends automatically. In some cases, especially in small business insurance setups, an employer may continue coverage for a limited time and adjust the premium cost in the full-and-final settlement. Otherwise, the policy lapses and all benefits terminate upon exit.
A Guide to Managing Group Health Insurance Premium After Layoff
Know When Your Coverage Ends
In India, group mediclaim policy typically ends on your last working day, or possibly at the end of your notice period, unless your employer grants an extension or specifies otherwise in your exit terms.
There is no legal obligation for employers to continue coverage post-employment. Some may offer a grace period, usually 15 to 30 days or include insurance in several packages. So, check your HR policy and understand when your coverage ends.
Check for Premium Adjustments
If you have recently paid for a voluntary top-up or contributed to the group mediclaim policy, check if you are eligible for a prorated refund. Some insurers return a portion of the premium for the unused months if no claims have been made. While not always guaranteed, you can always raise this with the HR or the insurer directly.
Port to Individual Health Insurance Policy
One of the best options after a layoff is to port your group health insurance to an individual or family floater plan. According to the IRDAI regulations, you are allowed to migrate your group mediclaim policy into an individual or family floater plan with the same insurer, without losing the waiting period benefits.
Explore Other Options
You can explore other options, like opting for short-term health plans. You might also consider joining a family floater plan or your spouse’s employer-sponsored group mediclaim policy. Government schemes can also be a convenient choice.
Conclusion
Managing health coverage after a layoff may feel overwhelming, but timely action can protect both health and finances. From migrating to individual plans to exploring government schemes, options exist. For long-term stability, consider planning ahead with comprehensive benefits and safeguarding your future with solutions like small business insurance.
