Good health and wellbeing helps people to work productively and efficiently towards the business goals and objectives of the organization successfully. In the current scenario, lifestyle diseases are taking a toll on the health and wellbeing of an individual. The ongoing Covid-19 pandemic scenario has even made healthy people sick.
Basic health requirements are becoming costlier. The increase in healthcare expenses and diseases has made the need for health insurance policy inevitable for having a strong finances at tough times.
Providing Group health insurance to employees can not only benefit them but also greatly benefit the organization or the employer. Let’s see how.
Benefits of Group Health Insurance for Employers
Group Health Insurance tax benefits
According to the Income tax regulations in India, if the employer pays the group health insurance premium on behalf of the employees, then employers are allowed to claim the entire premium amount and avail tax benefit.
The Income Tax Act states that “Any amount paid by the employers for the employees’ benefit will be treated as Profit in lieu of salary”. The premium amount paid mostly comes under the category of under general business expenses. These tax benefits can be availed by different business types like sole proprietorship, partnership firms, companies (public or private), etc.
There is no greater wealth than being healthy and happy. Employee mental wellbeing and happiness are considered very important owing to the stress that one undergoes everyday.
Having medical insurance cannot guarantee good health but can support and provide financial assistance during any tough times. Hence it empowers them and also makes them feel they are cared for.
Many employees also look for the group health insurance provided by the companies before securing a job. This makes them happy and increases their efficiency to work for the company and there by keeping the workspace happy.
As mentioned earlier, happy employees make happier workplaces. Employees are inclined towards jobs that provide them security. Providing group health insurance policy can help the company to retain these talents as they will be happy which makes the possibility of them leaving the company lesser.
A successful company can be made as the employees are loyal and happy, increasing the employee retention rate.
Goodwill generation and upliftment
There is nothing better than hearing “this is a good workplace to work in” from the employees itself. Providing an insurance cover can uplift the employee and also create a good brand name for the employer in the industry. This promotes the goodwill of the company and makes existing employees feel cared for. Thus creating a positive outlook.
Convenient and Economical
The employer does not need to worry about managing insurance-related processes as nowadays the insurance companies are tech-savvy. In the current scenario the digital-first insurance companies have made policy purchases, customer service, and claims settlement easy and convenient. An employer can pay the premium on a monthly, quarterly or yearly basis based on the convenience of the organization.
The group health insurance is carefully curated in such a way that it benefits several members of the organisation. This makes the cost of the premium to be paid lesser as the risk involved is spread across different members of the company, hence making the group insurance plan cheaper and economical than an individual health insurance plan.
If you are an employer who is in search of a good group health insurance plan for your employees, make sure to read the fine print of the insurance policy to understand the coverage in detail. The provider must be able to clear any doubts and give clarity regarding the same.
Do you have a Group Health Insurance for your organization? At PazCare we help employers like you to choose the best group health insurance policy for your team. Contact us to know more.