Maternity insurance helps employees manage rising pregnancy and delivery costs. Group health insurance plans offer the biggest advantage, no waiting period, wider coverage, and financial relief for young families. This guide explains maternity insurance, benefits, costs, and how HR can support new mothers beyond medical coverage.
Let’s be honest, having a child is one of the happiest and most crucial moments in a woman's life, but it’s also one of the most financially stressful. Maternity care costs in India have been rising by 14% every year, and for many families, even the basics feel overwhelming.
A normal delivery today can cost anywhere between ₹40,000-₹80,000, and a C-section can easily cross ₹1-2 lakh. For young couples just starting their careers, this kind of expense can disrupt their entire financial plan.
At the same time, the workforce is changing. More women are working, building careers, and staying in their jobs longer. According to The Hindu, India’s fertility rate has dropped to 2.0, which means smaller families, and higher pressure on each household to manage costs smartly (Source).
This is exactly why maternity insurance has become an essential benefit. For HR teams, this add-on to a group health plan is an empathetic way to show support. When a maternity insurance policy can reduce out-of-pocket expenses by up to 90%, it directly strengthens an employee’s financial security, emotional comfort, and overall experience during this crucial phase. A thoughtful maternity benefit allows employees to know, “We’ve got your back!”
Maternity insurance is a specialized type of maternity health insurance that covers medical costs related to pregnancy, childbirth, and newborn care. A maternity insurance policy includes:
Group health insurance (GHI) offered by employers often includes maternity coverage as an add-on or built-in benefit. Employees can also extend coverage to spouses and children through family floaters.
Note: the waiting period alone can make coverage usable or unusable during crucial years.
In individual maternity insurance plans, waiting periods range from 2 to 4 years, and some extend up to 6 years. Group health insurance accelerates this entire experience:
Pro-tips for HR teams: Prefer adding maternity benefits through GHI instead of individual maternity insurance.
1. Infertility treatment coverage (if included):Certain plans cover procedures like IUI or IVF, either partially or up to a predefined limit.
2. OPD consultations & tests:
The law mandates 26 weeks of paid maternity leave, but many organisations go a step further. Extending leave or offering phased rejoining options gives new mothers the time they need to recover and adjust.
To learn more, read Pazcare’s detailed maternity leave policy.
Holistic postnatal care can make a world of difference to a new mother’s recovery. HR teams can organise:
Flexible and family-friendly policies create a workplace where new parents feel valued. Consider offering:
Postpartum depression and anxiety often go unnoticed. HR teams can play a crucial role by offering:
Pazcare helps organizations design maternity-inclusive group health insurance plans with zero-wait coverage, newborn benefits, and integrated corporate wellness programs. Build a workplace where your employees feel protected, every step of the way.
Marketing Analyst
It is a health insurance benefit that covers pregnancy, delivery, and postnatal expenses for the mother and newborn.
Only in group health insurance. Individual maternity plans usually have a waiting period of 2-4 years.
It’s extremely beneficial for young families due to rising maternity costs and expensive hospitalizations in India.
Yes, it indicates a young workforce or rising maternity needs, HR teams should ensure adequate sub-limits.
Group maternity add-ons typically cost ₹5,000-₹15,000 extra per employee annually.
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