Group Medical Insurance is usually acquired in the name of a company to cover the medical expenses of all employees or some specified employees including in and out patient and dental covers. Medical plans can be extended to cover the spouses and children of the employees.

In order to retain key staff, listed companies or even small and medium-size companies will offer this kind of insurance to their employees as one of their fringe benefits. Also, higher premium discounts and wider coverages can be enjoyed under a group plan.