Beneplan is refunding $5.9 million in premiums to its employee benefits clients in Ontario.
The company’s clients are about 400 small businesses in Ontario, each receiving an average refund cheque amounting to nearly $16,000.
Beneplan explained in a release that the sizable payout is part of its refund program, wherein if a client’s health claims are lower than their premiums, Beneplan pays them back. The insurer noted that because of the pandemic lockdowns, employees were unable to visit to dentists, massage therapists, and other healthcare providers – the drop in claims led to many of Beneplan’s clients becoming eligible for refunds.
It was also noted that Beneplan’s $5.9 million refund this year is 136% higher than last year’s.
“This unprecedented large gap between claims and premiums represents left over profit that is usually kept by other insurers,’’ said Beneplan CEO Yafa Sakkejha. “We believe that it rightfully belongs to our members and since our inception we have returned over $26 million in premiums to small businesses.”
Yafa added that the majority of Beneplan’s clients are blue collar – those that run factories, industrial plants, machine shops and other essential services that are often underrepresented.
“We’ve seen clients use the refunds to pay off expenses, hire staff, extend health benefits and for some owners - finally pay themselves a small salary,” the chief executive commented.
