When a new corporate PMI scheme is established, who does the contract primarily establish a relationship between?

In the establishment of a new corporate Private Medical Insurance (PMI) scheme, the contract primarily creates a relationship between the insurer and the employer. This arrangement originates because the employer enters into a policy with the insurance provider to offer healthcare benefits to their employees. The employer is responsible for managing the scheme, including paying premiums and ensuring that the coverage effectively meets the needs of the workforce.

While the employees ultimately benefit from the policy and receive coverage, the contractual relationship is formally between the insurer and the employer. The employer acts as the intermediary who facilitates the provision of insurance benefits, allowing employees to access healthcare services under the terms set forth in the policy.

Understanding this dynamic is critical for recognizing the role of corporate PMI schemes in employee benefits packages, as it emphasizes the employer's responsibilities and the importance of their choice of insurer in determining the quality and scope of healthcare coverage provided to employees.