Team AckoJul 22, 2021
Over a period, companies have realised that their employees are integral to their success and one of their most important assets. And like every other asset, companies should look forward to insuring this asset as well. With the rise of the internet, the boom in the smartphone industry, and the emergence of digital-first insurers, companies have a good option in this regard—Employee Health Insurance. Read ahead for details.
Companies should consider buying a Group Health Insurance Plan for the following reasons.
An Employee Health Insurance Policy is a huge benefit, especially for those who cannot afford individual health insurance. The employees do not have to pay the premium for this plan. It is paid by the employer on behalf of the employee. This way, the employees receive health insurance coverage free of cost.
People might not opt for health insurance for several reasons. Some might not have the means to do so, some might be busy with their daily struggle, or some might be unaware of its benefits. With Employee Health Insurance, the employees will get the benefits of basic health insurance coverage. This can be of great help in case of emergency hospitalisation.
Insurance companies that offer Employee Health Insurance have tie-ups with top-tier hospitals that offer superlative medical care. Such hospitals are known as Network Hospitals. Thus, if the employee is covered under the policy and needs to be hospitalised, they can get admitted to these hospitals. Without such a policy, availing medical care might prove expensive.
Nowadays, it is the norm for people-oriented companies to offer Employee Health Insurance. While the availability of such a benefit might not be the sole reason for an employee to join or stay with the company for a long time, it can certainly be a contributing factor. Thus, offering an Employee Health Insurance policy can also be another tick in front of the Hiring and Retention box.
Companies can be eligible for tax benefits by paying the premium for Employee Health Insurance. The benefit will depend upon the total premium paid and the provisions of The Income Tax Act.
Most of the Individual Health Insurance Plans come with pre-fixed Waiting Periods. This is the duration for which the policyholders must wait before raising a claim and manage the expenses on their own without the insurer’s help. However, such Waiting Periods are relaxed for Employee Health Insurance. A prominent example of it is the Maternity Cover in such policies. Usually, individual plans for such a cover have a Waiting Period of more than a year but that’s not the case in Employee Health Insurance.
New-age health insurers are focusing on preventive health care initiatives. They are not restricted to conducting health check-ups. Such initiatives also include a fitness tracking app, rewarding healthy habits, discounts on gym memberships, etc. Some of these are also a part of the Employee Health Insurance Plans. Such preventive measures can help the employee to stay active and in turn, stay productive.
The role of Third-party Administrators (TPAs) in Employee Health Insurance makes sure that managing claims is not a hassle for the company/employer. Thanks to internet-centred technological advancements, the claims process has become a lot smoother to what it was a decade ago.
Digital-first health insurance companies have responsive websites and mobile-friendly apps to help make the entire insurance experience convenient. For example, tech-savvy insurers offer Telemedicine facilities under the Employee Health Insurance Plans. Such services are of great help, especially during the COVID-19 period.
An extensive Employee Health Insurance Plan offered by a tech-enabled company can be perceived as a major benefit for employees. With such a policy, the employees can feel that the company cares for their wellbeing and does not treat them as just a resource. It can be one of the driving factors in creating a people-first company culture that is beneficial for both the employer and the employee.
Also, Read: Corporate Health Insurance When Changing Jobs
Here are some of the challenges associated with Employer-provided Health Insurance
Providing such a type of insurance benefit can prove to be an expensive affair for smaller companies. However, they should consider the long-term benefits of such a policy and opt for an affordable plan to get things started.
All employees have the same blanket cover under this policy. Thus, there is no scope for individual customisation. However, depending upon the insurance provider, you can customise the overall cover. And if the employee wants enhanced coverage, it can be bought by paying extra premium. The respective employee will be required to pay for such enhancements.
Overall, employers need to understand more about such new-age Group Insurance Schemes so that they can benefit from them keeping their goals in mind.
Here are some vital points covered in the article.
Employee Health Insurance is a good way to cover basic insurance needs of the employees.
The company pays the premium for such a policy.
The cover is standard for all employees.
The policy is active only till the employee is a part of the company.
Partner with a tech-savvy insurance provider for a zero-trouble insurance experience.
Here’s a list of common doubts surrounding an Employee-offered Insurance Plan.
1. I own a small business with fifty employees. Should I opt for such a plan?
Employee Health Insurance is a good way to ensure financial assistance for employees in case of hospitalisation. You can opt for such a plan for a small business as well.
2. Can a company receive tax benefits for offering such a policy?
A company can receive tax benefits for offering Employee Health Insurance as per The Income Tax Act.
3. I have come across some companies that do not offer health insurance. What is the reason for it?
Prominent reasons for companies not choosing a group cover can be the cost factor, lack of awareness, and lack of customisation of the plan. However, new-age insurance companies offer enhanced benefits to overcome the challenges. You can have a look at these benefits by visiting ACKO’s Group Medical Coverage (GMC) Page.
4. What happens if I leave the company? Will the Group Health Insurance policy remain active?
When you leave the company, you will not be a part of the ‘group’ that is covered by the plan. Thus, your coverage will expire.
5. I run a business venture. Can I buy Group Health Insurance for Employees from ACKO?
Yes, you can buy a Group Health Insurance Plan from ACKO by visiting GMC.
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