Page 29 - MEDICAL AND HEALTH INSURANCE

MEDICAL AND HEALTH INSURANCE

THE VOLUNTARY GROUP MARKET

Voluntary PMI is usually a group policy, whereby an

association/organisation/club or employer wishes to offer PMI cover but

does not pay for the premium or partly subsidises the premium.

The product benefits may be based on the individual products found in the

market or have some alterations or be exclusively tailor-made for the
group's need. The premium is based on the group' size, claim experience,

and risk exposure. The premium may be 'age-band' or 'level premium'

regardless of age.

The members or employees are responsible for the premium, fully or
partly, depending on the arrangement of sponsorship of the scheme, if

any. The mode of premium payment can be monthly by way of salary

deduction or by quarterly or annual premium, depending on the group size

and the negotiated terms. Similarly, a personal health declaration may be

imposed or waived depending on the group size and terms.

Renewal is on a yearly basis subject to underwriter consideration and the
terms and premium may be altered during renewal, depending on the

experience and changes of the group size.

THE COMPANY AND CORPORATE GROUP MARKET

The company and corporate group market refer to employers providing

group PMI for their employees and can also be a part of the employee
benefits scheme.

In most corporate group policies, the premium is paid by the employer and

coverage may extend to the dependants of the employees.

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