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Insurance Article

Group Insurance vs. Personal Insurance

July 21 2015

All was well, until one day when Sandeep and his wife met with an accident. He lost his right eye and his wife was hospitalized. He was forced to stay away from his job for a year. During this one year, he realized that the group health insurance cover provided by his company was inadequate, and came with several caveats, for example, a high co-pay percentage and treatment wise limit.

Sandeep bore a considerable amount of the expenses incurred. He could have avoided the financial loss if he would have taken a personal insurance cover for himself and his family.

Listed below are some benefits of individual health insurance over group insurance:

Complete Control

You can exercise complete control while deciding the sum insured. You can independently select the nature of the policy. Apart from this, you also have the flexibility to increase or decrease the cover depending on your need.


Scenario 1
Group Health Insurance

Individual Health Insurance

Coverage amount

Depends on company policy

Depends on your requirement

Flexibility w.r.t. coverage amount



Coverage for dependents



Income tax benefits



Complex documentation and approvals



Availability of add-ons No Yes

No claim bonus



Family Cover

The personal health cover can insure not only you but also your dependents and parents.

Job Change

The transition period between jobs or change of location is marked as a high-risk time, as you might not be eligible for cover under the group insurance plan. It is imperative therefore that your personal insurance cover gives you protection irrespective of your job or location.

Retired Employees

A health insurance is most valuable post the retirement age of 60 years. Most company-provided group insurance covers expire as an employee retires. To avoid this you can avail a personal health insurance plan at a younger age, and opt for lifelong renewability option.

Required Cover and Cover Opted For

You need to assess the amount of health insurance required for your family and yourself on a regular basis. The cost of medical expenditure rises exponentially year on year. A group health insurance does not take into consideration such a high rate of rise. A personal health insurance reassessed regularly can help you to bridge the gap between the required cover and the existing cover.


You have the freedom of moulding your policy as per your requirements. You can purchase specific provisions, in short avail riders or add-ons.

No Claim Bonus

You can avail the benefit of no claim bonus offered by Insurance Companies to their customers.

Deduction under Section 80D

While filing your return to the Income Tax Department, you can claim a deduction for the premium paid, under section 80D. This deduction cannot be claimed in case your company pays for your health cover under group insurance.

To know more about the Health Insurance Plans offered by ICICI Lombard Health Insurance


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