Employee health insurance: Employee Health insurance is a benefit extended by an employer to their employees.
Employee health insurance: Employee Health Insurance plays a crucial role as it gives employees a sense of security. It not only helps employees with financial security but also benefits their families in unforeseen circumstances. Let’s understand what is employee health insurance and why it is significant?
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What is employee health insurance?
Employee Health insurance is a benefit extended by an employer to their employees. Under this, the employer pays part or the full premium for the health insurance policy. Employee health insurance also covers the dependents and family members of the employee.
Employee health insurance is an integral part of the service benefits package that is very useful for employees and their families in events of medical uncertainties.
Why is Employee Health insurance important?
“Amid the current environment of uncertainty, it is essential for companies to pay heed to their employees’ holistic health. The costs of healthcare in India are rising and a single illness can drain a family’s lifetime savings. Therefore, as employers, it is important to cover employees and their families’ healthcare costs and also any ancillary costs that can occur due to accidents or lifetime disabilities,” said Abhishek Poddar, co-founder, and CEO, Plum.
He added that not only will this increase peace of mind at work but also increase retention and create an environment of equitable benefits for all.
But is health insurance coverage enough?
According to research by Plum, an employee health insurance platform, only 5 per cent of Indian organisations offer comprehensive insurance coverage which includes Health Insurance (GMC) + Accident and Disability Insurance (GPA) + Term Life Insurance and comprehensive telehealth consultations (GTL + Telehealth).
Abhishek says that it is concerning that of these companies, only 25 per cent cover parents, followed by 44 per cent offering an employee-spouse-children (ESC) plan, and lastly, 30 per cent offer an employee-only plan.
Here is a basic comprehensive coverage recommended by an insurance expert:
| Benefits | Basic comprehensive coverage (irrespective of size) | For companies that want to go above and beyond… |
| Hospitalisation Expenses | Sum insured of 5 lakhs including maternity and modern treatment expenses upto 1 lakh covering employees their partners & children | Sum insured of 10 lakhs including maternity and modern treatment expenses upto 1.5 lakh covering employees their partners, children & parents |
| Accident & life | 3 times their annual earnings to help the family recoup in case of an unfortunate loss | 5 times of annual earnings and lump sum payout for Critical Illness to help the family recoup in case of an unfortunate loss |
| Primary Healthcare & Wellness | Avenues to consult doctors for primary healthcare needs – this is possible via teleconsultation today | Invest in full-suite preventive programs:●Mental and physical wellness● Nutrition● Gym memberships and●OPD including in-person doctor consultations, pharmacy, and diagnostics expenses. |
