The Corporate Cover Trap: Why Your Office Mediclaim is Not the Safety Net You Think It Is
We often meet clients who tell us, “I don’t need health insurance right now; my company covers me and my family.”
It feels like a safe position to be in. After all, corporate health plans are a fantastic perk—they are usually free for you, cover pre-existing diseases from day one, and often include parents.
But relying only on your employer’s coverage is a financial risk that most people don’t see until it is too late. Here is why having your own personal health insurance policy is not just an “extra expense,” but a necessary safety net.
1. Your Insurance is Tied to Your Job
This is the biggest risk. Your corporate cover exists only as long as you are an employee of that specific company.
- Job Loss: If you are laid off or lose your job, you lose your insurance overnight.
- Job Switch: If you move to a new company, there might be a waiting period, or the new company might offer a lower coverage amount.
- Career Breaks: If you decide to take a break to study or start a business, you will be uninsured.
The Reality: Illnesses don’t wait for you to find a new job. A personal policy stays with you no matter where you work.
2. The Sum Insured is Often Too Low
Most office policies offer a coverage of ₹3 Lakh to ₹5 Lakh. Ten years ago, this might have been enough. Today, with rising medical inflation in India, a single major surgery or a week in a private hospital ICU can easily cost more than ₹5 Lakh.
If your bill is ₹8 Lakh and your office pays ₹5 Lakh, you will have to pay the remaining ₹3 Lakh from your own savings. A personal policy acts as a top-up to ensure your savings remain safe.
3. Retirement is the Real Challenge
One day, you will retire. When you leave the workforce at age 58 or 60, you leave your corporate insurance behind.
- Buying a new policy at age 60 is extremely expensive.
- Worse, if you have developed health issues (like diabetes, BP, or heart conditions) by then, insurance companies may reject your application entirely.
Buying a personal policy while you are young and healthy locks in your insurability for life.
4. You Miss Out on “No Claim Bonus” (NCB)
In a personal health policy, for every year you don’t make a claim, the insurance company usually increases your coverage amount for free (No Claim Bonus).
- Corporate Policy: Even if you don’t claim for 10 years, your coverage remains the same.
- Personal Policy: If you don’t claim, your ₹5 Lakh cover could eventually double to ₹10 Lakh without you paying extra premium.
5. Your Employer Can Change the Rules
Corporate policies are designed to save the company money. Next year, your employer might decide to:
- Stop covering parents.
- Introduce a “Co-pay” (where you have to pay 20% of the bill).
- Reduce the room rent limit.
With a personal policy, you make the rules, and the terms are locked in as per your contract.
Recommendation :
Don’t cancel your office insurance—use it! It is great for small claims. But, treat your office insurance as a “Bonus” and your personal insurance as your “Foundation.”
We suggest buying a personal base policy or a super top-up plan (which is very cheap) to cover you over and above your office limit.
Would you like us to review your current office policy and suggest a low-cost Top-up plan to keep you fully protected?