Why Every Workforce Needs Employee Benefits Insurance

In today’s world, good health is truly the greatest wealth. With life becoming increasingly unpredictable and healthcare costs rising every year, being financially prepared for medical emergencies is more important than ever. That’s where an Employee Benefits insurance policy becomes essential. 

A 2023 survey by Deloitte India found that 82% of employees expect health insurance as a standard benefit, especially after COVID-19.

What is employee benefits insurance?

The employees are the greatest asset of any organization. To attract, retain, and care for them, companies often offer employee benefits insurance as part of their total compensation package. Employee benefits insurance, also known as employee health insurance, is a group insurance policy provided by the employer to cover medical expenses for their employees. In many cases, these benefits are also extended to dependent family members such as spouses, children, and  parents.

The employer either fully or partially covers the insurance premium, making it a cost-effective health coverage solution for employees. Once enrolled, employees receive health cards from the insurer, which they can use their employee health insurance to access cashless treatments at network hospitals, file claims, and avail services under the policy.

Take a look at our group health insurance guide to know more about employer employee insurance, its benefits and importance.

Why does employee health insurance important?

Covering your employees with employee health insurance also known as group health insurance is a step towards employee wellbeing. It shows you care not only for their work but also their health too. It is one of the most useful employee benefits that the employer can provide.

As part of the post lockdown covid-19 operating guidelines, the IRDAI has made it mandatory for the employers to cover their employees with proper group medical insurance. In fact it is one of the most important employee benefits in India.

Hence, we can say that providing an employer employee insurance no longer becomes a privilege but a basic requirement.

Rising healthcare costs in India have increased by nearly 14% an annual rate, making employer-provided health insurance more important than ever for financial security.

Types of employee benefits

While health insurance is critical, modern organizations offer a broader range of employee benefits. Here are the main types of employee benefits companies should consider:

1. Health & insurance benefits

• Group health insurance
• Group personal accident insurance
• Group term life insurance
• Super top-up policies

2. Financial benefits

• Provident Fund (PF)
• Gratuity insurance
• Performance bonuses
• Tax-saving components (LTA, meal cards, fuel benefits)

3. Work-life benefits

• Paid leave policies
• Flexible working arrangements
• Maternity leave
• Parental leave
• Mental health support

4. Wellness & preventive care

• Annual health check-ups
• Therapy sessions
• Teleconsultations
• Preventive healthcare workshops
  

What are the benefits of employee insurance?

Employee insurance provides a dual advantage, it supports your workforce and strengthens your organization. For employees, it offers critical financial protection during medical emergencies. For employers, it improves retention, boosts morale, and enhances the overall value proposition of your workplace. Simply put, it’s a win-win for everyone.

Why employee insurance matters for employers?

• Tax benefits for group health insurance can be availed if the employer pays the premium against it. In most cases the organization pays the group health insurance premiums.
• In a competitive job market, offering meaningful benefits like employee health insurance helps your company stand out. It shows that you value your employees beyond just their work output.
• When employees know they’re covered in times of medical need, it builds trust and loyalty. This leads to higher engagement, better retention, and improved productivity across the board.

Read: Employee Benefits Survey Report by Pazcare

How employee insurance benefits your employees?

1. Financial Security During Medical Emergencies
   Employee health insurance helps employees by covering medical costs during emergencies. It reduces their financial stress when they need treatment the most.
   
2. Coverage of Hospitalization Expenses
   The policy typically covers room rent, hospitalization costs, ICU charges, and other in-patient expenses up to the sum insured. Many plans also cover regular health check-ups and treatments done at home (domiciliary hospitalization).
   
3. Preventive Healthcare Services
   Many group health insurance plans include annual medical check-ups, access to doctor consultations, wellness programs, and even cashless facilities across a network of hospitals.
   
4. Pre-existing Disease Coverage & Waiting Period Waivers
   Unlike retail plans, employee health insurance often covers pre-existing conditions from day one or with minimal waiting periods, a big plus for employees with ongoing medical needs.
   
5. Easy and Fast Claim Settlement
   With corporate tie-ups and TPAs (Third Party Administrators), employees enjoy faster claim approvals and 24x7 assistance, ensuring peace of mind during treatment.

Inclusion of Family in Employee Insurance

Most companies provide health insurance not just for employees, but also for their spouses, children, and parents. This is one of the biggest benefits of employee insurance.

Since parents are more likely to need medical care and  frequent  hospitalization, some companies include them in the policy for an extra premium. With rising healthcare costs, adding parents to the group insurance is a smart choice.

Other key advantages include:

• No Medical Checkup Needed: Unlike individual or family health plans, employee insurance usually doesn’t require a pre-medical screening. This means employees and their families can get coverage without health tests.
  
• Coverage for Pre-Existing Conditions: Employee insurance covers pre-existing diseases from day one for the employee and their family members. This is often not the case with individual or family health insurance plans, which may have waiting periods.
  
• Super Top-Up Feature: The standard coverage amount is often up to 5 lakhs, which may not always be enough. Hence, an employee can pay an additional premium and purchase the super top-up feature. Under this the sum insured increases from the already existing limit.

Provide employee benefits and employee insurance with Pazcare

The medical expenses are constantly increasing. Providing group health insurance is no longer an additional benefit but a basic necessity. Provide your employees with tailor-made group medical insurance policies. Not only that, you can provide them corporate wellness programs like unlimited doctor consultations, therapy sessions, regular health check-ups, healthcare workshops and webinars, and many more at discounted prices. 

To know more about wellness programs, its benefits and finding out ways to design them, check out our corporate wellness programs guide. Furthermore, step up your employee healthcare benefits by offering group accidental insurance policy and group term life insurance.

Now provide tax saving employee benefits solutions to your employees with Pazcare. PazCard by Pazcare is a finance solution to your employees that can increase their take-home salary. The plan comes with features like food wallet, LTA wallet, fuel wallet, gift wallet, and many more which the employees can use tax-free.

Have a question? Talk to our team and get started with your employee benefits journey.