How To Add Or Delete Employees In Group Health Insurance?

Understand the process of adding or removing employees from a group health insurance plan, ensuring smooth policy management for businesses.
Explore Plans
Check Health Insurance Plans
Get Quote
3 min
05-May-2025
Group health insurance is a policy that provides medical coverage to employees of an organisation. It ensures financial security by covering hospitalisation, treatments, and medical expenses. This type of insurance is beneficial for both employers and employees, offering cost-effective healthcare solutions and enhancing workplace satisfaction.

For businesses, group health insurance improves employee retention, boosts productivity, and fulfils regulatory requirements. Employees benefit from comprehensive coverage at lower premiums compared to individual policies. Moreover, it includes pre-existing disease coverage and maternity benefits, making it a crucial workplace benefit.

Managing group health insurance involves regularly updating employee records. Employers need to add new employees and remove those who leave the organisation. This process requires timely updates to ensure uninterrupted coverage and compliance with policy terms. Understanding the procedures for adding or removing employees from the plan is essential for smooth administration.

What is group health insurance and why is it important

Group health insurance is a collective medical policy provided by employers to their employees. It covers medical expenses, including hospitalisation, treatments, and pre-existing diseases. The coverage extends to employees and, in some cases, their dependents.

This insurance is important because it ensures financial protection against high medical costs. Employees receive healthcare benefits at significantly lower premiums than individual policies. Employers benefit by enhancing job satisfaction, reducing attrition, and fostering a positive work environment.

Additionally, group health insurance meets legal and regulatory requirements. Many organisations provide this as part of their employee welfare benefits. It also improves employee well-being, leading to increased productivity.

For businesses, group health insurance is a cost-effective way to provide medical security. It strengthens the employer-employee relationship by demonstrating corporate responsibility. With rising healthcare costs, this coverage is crucial for ensuring access to quality medical care.

When should employees be added or removed from group health insurance

Employees should be added to a group health insurance policy as soon as they join the organisation. Typically, insurers allow a grace period for enrolment, ensuring new employees receive timely coverage. Delay in adding employees can result in a lack of coverage during medical emergencies.

Similarly, employees should be removed from the policy immediately after they resign, retire, or are terminated. Employers must update the insurer to avoid unnecessary premium charges for ex-employees. Some policies provide an exit coverage period, ensuring coverage for a limited time after leaving the organisation.

Timely updates prevent disputes and ensure accurate policy administration. Employers should maintain proper records and inform the insurer about employee status changes. Non-compliance can lead to policy lapses or financial liabilities. Keeping track of employee additions and removals ensures seamless health insurance management and compliance with company policies.

Steps to add employees in group health insurance

1. Verify eligibility
Ensure the new employee meets the eligibility criteria set by the insurer and company policy.

2. Collect employee details
Gather required information, including name, date of birth, contact details, and dependent details (if applicable).

3. Submit documents
Provide necessary documents such as ID proof, appointment letter, and KYC documents to the insurer.

4. Enrol the employee
Submit the details through the insurer’s online portal or via email. The insurer will process the request and add the employee to the policy.

5. Receive confirmation
Once approved, the employee will receive a health insurance ID or e-card. Ensure the employee understands the policy terms and benefits.

6. Update records
Maintain accurate records of the newly added employees to avoid discrepancies in the policy.

Adding employees on time ensures they receive medical benefits without delays.

Process to remove employees from group health insurance

1. Identify employees for removal
List employees who have resigned, retired, or been terminated from the organisation.

2. Inform the insurer
Send a request to the insurance provider with employee details for removal.

3. Submit necessary documents
Provide resignation letters, termination letters, or any other required documents.

4. Confirm policy termination
Ensure the insurer processes the request and confirms the removal of the employee from the coverage.

5. Notify the employee
Inform the employee about their policy termination date and any applicable exit benefits.

6. Update company records
Maintain proper records of removed employees to avoid any unnecessary premium charges.

Removing employees promptly prevents extra costs and maintains accurate insurance records.

Documents required for adding or deleting employees

For adding employees:

  • Employee ID proof (Aadhaar, PAN, or Passport)
  • Appointment letter or joining letter
  • Address proof
  • Photograph
  • Dependent details (if applicable)
For deleting employees:

  • Resignation or termination letter
  • Last working day confirmation
  • Employee ID card (if applicable)
  • Any insurer-specific forms
Providing accurate documents ensures a smooth addition or removal process. Any missing information may lead to delays or complications. Employers should verify details before submission to avoid processing issues.

Common challenges in managing employee health insurance changes

1. Delayed updates
Failure to add or remove employees on time can lead to claim rejections or excess premium payments.

2. Incorrect documentation
Missing or incorrect details can cause delays in processing changes. Ensuring proper documentation is essential.

3. Policy mismanagement
Not tracking employee insurance records can lead to coverage issues. Maintaining updated records prevents such problems.

4. Compliance issues
Not following insurer guidelines can result in policy lapses or legal concerns. Employers should stay informed about policy terms.

5. Employee communication gaps
Employees must be aware of their health insurance coverage, benefits, and claims process. Regular communication ensures clarity.

Handling these challenges effectively ensures smooth policy management and uninterrupted coverage for employees.

Conclusion

Managing group health insurance involves timely updates of employee details to ensure accurate coverage. Employers must add new employees as soon as they join and remove those who leave without delays.

Proper documentation and adherence to insurer guidelines prevent claim rejections and premium discrepancies. Employers should maintain clear communication with employees regarding their policy benefits and changes.

By managing group health insurance efficiently, businesses can provide financial security to employees while optimising insurance costs. Keeping track of additions, removals, and policy updates ensures seamless administration and compliance.


For those seeking a convenient and reliable way to explore health insurance plans, consider Bajaj Finance Insurance Mall. We partner with numerous insurers, providing a diverse selection of health plans to cater to varying needs and budgets. Our online platform allows you to effortlessly compare policies, and select the ideal plan to safeguard your health and finances. With Bajaj Finserv, securing the right health insurance coverage is a hassle-free and informed decision.

Frequently asked questions

What is the time limit for adding a new employee to group health insurance?
Typically, a new employee can be added to a group health insurance policy within 30 to 60 days from their joining date. The exact timeline may vary depending on the insurance provider's terms and company policy. Ensure you check with your insurer for specific deadlines.

Can an employee be removed from group health insurance before resignation?
Yes, an employee can be removed from the group health insurance policy before resignation, typically due to events like termination, leave of absence, or a change in employment status. The removal process must align with the company's policy and insurer’s terms.

What documents are needed to add a new employee to the policy?
To add a new employee to the group health insurance policy, common documents required include the employee’s ID proof, proof of employment, and completed insurance application forms. Some insurers may ask for additional documents, such as bank account details.

Is there any penalty for late addition or deletion of employees in group health insurance?
Yes, insurers may charge penalties or premiums for late additions or deletions of employees in group health insurance. These fees vary depending on the insurance provider's terms and conditions. It’s crucial to follow the stipulated timelines to avoid such penalties.

Show More Show Less

Bajaj Finserv App for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.

  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements, and even get quick customer support—all on the app.
Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

GET THE APP

Disclaimer

*T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Life Insurance Corporation of India (LIC), Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Co. Limited , Star Health & Allied Insurance Co. Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limitedunder the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also a distributor of other third party products from Assistance Services providers such as CPP Assistance Services Pvt. Ltd., Bajaj Finserv Health Ltd. etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective Assistance service provider company.



Note – While we have made all efforts and taken utmost care in gathering precise information about the products, features, benefits, etc. However, BFL cannot be held liable for any direct or indirect damage/loss. We request our customers to conduct their research about these products and refer to the respective product’s sales brochures before concluding their sale.

Disclaimer: *T&C Apply. #Insurance premium indicated is for healthy male aged 18 years and is exclusive of tax.
Show All Text