There can be multiple reasons to cancel a Group Health Insurance Policy. Sometimes employers are not satisfied with the features that were promised while other times, the company has been acquired because of which the Group Mediclaim Insurance Policy is no longer required.
This article details the different ways in which a Group Health Insurance Policy can be cancelled.
3 Ways to Cancel a Group Health Insurance Policy
Cancellation by Policyholder/Employer
Sometimes, an Employer might want to cancel his Group Health Insurance Policy because he is not satisfied with his Policy Features. In that case, the Insured can cancel the GMC Policy by giving a written notice of 15 Days or 30 Days. The Group Health Insurance Company will refund the premium on short term rates for the unexpired Policy Period as per the rates detailed below:
|
Short Period Rates for Group Health Insurance Policy Cancellation |
|
|
Covered Upto Days |
% Refund |
|
7 |
Up to 90% |
|
30 |
Up to 75% |
|
60 |
Up to 65% |
|
90 |
Up to 50% |
|
120 |
Up to 40% |
|
180 |
Up to 25% |
|
240 |
Up to 15% |
|
Exceeding 240 |
Up to 0% |
An important point to note is that the Group Health Insurance Premium won’t be refunded for Policy Cancellation if any Claim has been lodged or admitted or paid to the Insured Employee.
Additionally, the Insurance Company will also not accept any claims after the written notice for Policy Cancellation is submitted by the Insured. As a result, the employee stands to lose out on Health Insurance Coverage after the cancellation request. Hence, it is very important that the Employer arranges a replacement Policy for employees to ensure steady health insurance coverage before sending a request for Policy Cancellation.
Automatic Cancellation
A Group Health Insurance Policy will be automatically cancelled in case of the death of the Policyholder. The Premium will be refunded as per the short period rates in case the Policyholder has not taken any claims against the GMC Policy.
Cancellation by the Group Health Insurance Company
The Group Health Insurance Company also has a right to cancel the GMC Policy by giving a 15 Days – 30 Days written notice to the Insured. However, the Insurance Company can only cancel the Policy on grounds of misrepresentation, non-disclosure of material facts or fraud.
If the Insurance Company cancels the GMC Policy on grounds of misrepresentation, non-disclosure of material facts or fraud, then there will be no refund of premium by the company.
Conclusion
This article detailed how to cancel a Group Health Insurance Policy and the refund policy in case of Policy Cancellation.
Qian is an experienced Group Health Insurance Broker and if you wish to purchase a Group Health Insurance Policy for employees, you can reach out to us at insurance@qian.co.in or call us on 022-22044989.
We would be glad to assist you.