The insurance sector is dominated by many renowned companies. The market share of these companies accounts to almost ninety percent of the total insurance industry shares. The insurance industry is broken into life and non life insurance industry. The life insurance industry has insurance types including the regular stream of payments made in order to get the final claim payment received at the time the policy is expired. The other type of non life insurance almost has all the remaining insurance types and includes health insurance as well. The insurance type of non life insurance includes insurance of vehicles, furniture, building, health, cash and other similar items.
Life insurance is offered by almost all the large companies. Due to the nature of such insurance it is often seen that this type of insurance is not taken up by small insurance companies or companies that have a low amount of capital at their disposal. The usual tenure of an insurance policy constitutes one year while in case of life insurance policy the insurance policy is of a longer period of time. Health insurance policy is taken in order to cover the risks of getting ill because of several types of diseases.
The insurance cover for health is a good way for companies to provide medical health benefits to its employees. Almost all companies provide medical insurance benefits. These benefits are in the form of reimbursing actual medical expenses while in some companies there is a limit of expense that can be availed by an employee in a year. The limit is different for employees at different levels. However, a cost effective solution has been implemented recently by companies who have the history to act smartly. Such companies always do not come up with a beneficial solution but the thing is that they at least having a thinking cap on while taking decisions. Since there were faults and drawbacks in both sorts of medical benefits the company then took an initiative to get the health insurance done by all of its employees.
The drawback in case of reimbursement is that when employees or their household gets any chronic disease or other sufferings causing larger expenses, the company needs to suffer huge costs in this regards. In case where a limit is fixed for the payment of medical expenses, the same are paid irrespective of the fact whether the employee falls ill or not. So where health insurance is obtained, a fixed amount of premium is paid once in a year. Now the rest is all between the insurance company and the employee and the employing organization is no more to be involved in the matter.
The cost of health insurance to the company is not that high comparing the costs of reimbursing the expenses. Further on the part of the employees, it is also beneficial since they get free health facilities without involving any payments on their personal counter. Payment of medical expenses and later reimbursement means that employee money is involved and stuck till it gets reimbursed. Further, the benefits for employee are to have good medical facilities from good hospitals and medical clinics.