Are you self-employed? Do you want to purchase a group health insurance policy?
A group health insurance policy is an agreement between the insurance company and the organization in which the insurance company provides health insurance coverage to the employees of the organization in return for an amount known as a premium that is paid by the employer.
A group health insurance policy can be purchased only if there is an employer-employee relationship in most cases.
Also Read: Top Insurance Stocks in India – Types, Overview & Complete List
Requirements to take group health insurance: Insurance companies give group health insurance to only those who satisfy certain conditions which are mentioned below: –
- Registered company: The main important thing to avail of a group health insurance policy is to have a registered company. The company should be registered in India under the companies act or any other applicable act. It is to be noted that individuals cannot take a group health insurance policy. The registered entity should also submit either the pan card or GST copy in most of the cases while purchasing the group health insurance policy.
- A minimum number of lives: The other requirement to take a group health insurance policy is the minimum number of lives. There should be at least 7 lives to be insured under the group health insurance policy without which one cannot avail of group health insurance policy. The minimum requirement is specified by the Insurance regulatory and development authority of India and is adhered to by all the insurance companies in India.
- Premium payment: The other thing is that the organizations or companies should be able to pay the premium for the group health insurance policy without which the policy would not be issued. The premium under the group health insurance policy is decided by many factors such as the age of the members, the sum insured opted under the policy, the total number of members, coverage opted, etc.
Check Health Insurance for Freelancers & Self-Employed.
Types of Companies: A self-employed person can purchase a group health insurance policy if only the above-mentioned requirements are satisfied. Here are the types of companies that a self-employed person can have: –
- Sole proprietorship: Sole proprietorship company is one in which there would be only one owner who is the sole management of the company. This kind of firm has unlimited liability as the owner of the company absorbs the entire liability. The sole proprietor would be the owner of the company dealing in day-to-day activities. The group insurance can be taken by the sole proprietor if the minimum number of lives requirement is satisfied.
- Partnership companies: The other type is the partnership firm in which more than one person would be engaged and the shares of the firm would be distributed among the owners. All the persons under the firm would be known as partners with unlimited liability. There would be different people in the firm with different weightage in the shares of the company.
- Family business: The other one is the family business which can be a sole proprietorship or partnership firm with family members as partners. In this case, the group health insurance can be availed if the minimum lives are present.
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