Company mutual insurance: the essential points to know

Today, every company must know that the well-being of its employees affects its development. The quality of work and the benefits derived from it can only be realized if they are productive. It is therefore essential to provide them with benefits such as mutual insurance.

How to define it ? Why subscribe to it ? When to request a cancellation of a company mutual insurance ? Hereafter, the’team of the www site.adpassurances.en/ answers these questions.

What is a company mutual insurance ?

The company mutual insurance is not a new concept. It has existed for a long time in the labour market. It can be seen as a group health insurance contract, covering health expenses not covered by the French health insurance system. In a given company, it should be dedicated to all workers (managers and employees), although there are exceptions that will be discussed further below.

Depending on the company, it can also benefit the beneficiaries (spouses and children) of the employee. Note that the employer is responsible for part of the contribution to the company health insurance scheme. It depends on the status of the employee (executive or non-executive), but a minimum level of coverage must be respected.

Why subscribe to a company mutual insurance ?

In recent years, the establishment of a company mutual insurance company to which employees must subscribe has become mandatory for a company. The company’s share of the cost is at least 50%. This should not be a problem, as there is a considerable tax advantage behind it. The structure that adopts this system also benefits from an exemption from social charges. Since the contract is negotiated for several people, it is always less expensive. Moreover, subscribing to a company health insurance benefits the employee.

The employee will benefit from several interesting guarantees, especially if he/she completes the initial offer with additional coverage. In terms of rates, the group health insurance plan is less expensive than an individual health insurance plan.

What are the exceptional conditions ?

The health insurance is a protection adapted to the specificities of the activity, but it can also cover general cases. It should take effect at the very moment of hiring. Nevertheless, in certain situations, the employee has the possibility to cancel it. This is the case, for example, if the employee’s employment contract has ended because he or she has retired, resigned or been dismissed. Moving abroad or joining a spouse’s health insurance plan are also valid reasons.

Note that the employer can also demand the cancellation of the mutual insurance company if he is not satisfied with the proposed coverage. The procedures to follow to validate the cancellation of the contract vary from one company to another. The most important thing is to respect certain conditions: notice period, date on which it is possible to ask for the cancellation… Also, do not forget to subscribe to a new complementary group health insurance since the company mutual insurance is mandatory.

In short, you now know the important points about the company mutual insurance. If you have any further questions, do not hesitate to refer to an online broker. It really masters this complicated field of insurance.