Why Company Health Insurance Is Not Enough in India (2025 Edition)
If you’re working in a corporate job in India, there’s a good chance your employer gives you free health insurance. For many people, this sounds like a bonus — a benefit they don’t need to think twice about.
But here’s the truth: depending only on company health insurance is a risky move. We’ve seen too many cases at MyInsuranceDost where people had coverage through work, but it wasn’t enough when they actually needed it.
This article will help you understand why company health insurance may not be enough — and what you can do about it.
What Is Company Health Insurance?
Company or employer-provided health insurance is a group plan offered by your employer. It typically covers hospitalization expenses and sometimes includes cashless treatment at network hospitals.
While it’s useful, it’s designed to offer temporary and limited protection. It’s not built to handle long-term or serious medical needs.
1. You Lose company health insurance When You Leave Your Job
This is the most important point. If you change jobs, get laid off, or retire, your company health insurance ends immediately. That means if you fall ill in between jobs — you’re on your own.
Many people don’t realize this until they face a medical emergency without any active health cover.
2. Coverage Amount Is Too Low for Today’s Medical Costs
Most employer health policies offer a sum insured of ₹2 to ₹5 lakhs. While this may sound like enough, it isn’t.
A single hospitalization for something serious — like an accident, surgery, or ICU stay — can easily cost ₹6 to ₹10 lakhs in a good hospital. Even a basic procedure like a gallbladder operation could touch ₹2–3 lakhs.
Your company plan will cover part of it. The rest? It’s coming out of your savings.
3. Parents May Not Be Fully Covered
Many people add their parents to their company health plans, thinking they’ve got them covered. But most group policies either don’t allow parents or only offer very limited coverage for them.
If your parents are above 60 or have pre-existing conditions, you’ll likely need a dedicated senior citizen health policy — and it’s better to get it while they are still eligible.
4. No Portability or Bonus Benefits
With a personal health insurance policy, you build up benefits like no-claim bonus, loyalty rewards, and policy portability over time.
But with company-provided insurance, there is no continuity. The day you leave, everything resets — no benefits carry over.
Also, if you wait till your 40s or 50s to buy your first personal policy (after relying on employer plans all your life), you’ll pay a higher premium and may face exclusions due to age or medical history.
5. No Control Over Your Coverage
With employer-provided plans, your company decides the insurer, features, hospital network, and sum insured. You have no say in the matter.
If HR changes the insurer or reduces benefits, you’re stuck with whatever is offered. During emergencies, this lack of control can cause big problems — especially if the nearest hospital isn’t part of the network.
What’s the Smart Move?
We’re not saying you should ignore your company health plan. Use it — it’s valuable. But don’t depend only on it.
A personal health insurance policy ensures:
- You stay covered when you leave your job or retire
- You have full control over your policy
- You can cover your family properly
- You maintain continuity and bonuses over the years
And if you buy early (in your 20s or 30s), the premium is low and stays fixed for life.
How MyInsuranceDost Can Help
At MyInsuranceDost, we specialize in helping working professionals choose the right health insurance policy. We work with leading insurers like Star Health, Niva Bupa, Care, HDFC Ergo, ICICI Lombard, and others.
Our team helps you:
- Understand what kind of coverage you really need
- Compare policies across top companies
- Avoid unnecessary add-ons or costs
- Support you throughout the claim process if required
No pressure, no jargon — just honest help.
Visit: www.myinsurancedost.com and policyzar.com
Final Thoughts
Company health insurance is good — but it’s not good enough on its own.
If you care about your family’s health and your own financial safety, get your own personal policy today. The peace of mind it brings is priceless.
