Why is a Corporate Insurance Policy For Employees Necessary?
Providing a corporate insurance policy for employees becomes very important in the current working landscape.
Before the Covid-19 pandemic, providing a corporate insurance policy for employees was not mandatory. However, in response to the pandemic, the Insurance Regulatory and Development Authority of India (IRDAI) subsequently issued a circular in 2020 circular requiring employers to provide compulsory corporate medical insurance plans to their employees.
Healthcare expenses often burn a hole in one’s pocket. By having a corporate health insurance plan with an adequate sum insured, you help your employees financially.
In some cases, when employees move to tier-1 or tier-2 cities for work, the medical expenses can skyrocket. Providing an adequate corporate mediclaim policy can make your employees less worried about these expenses and focus more on getting the work done.
What is Corporate Health Insurance?
Corporate Health Insurance is a form of health insurance that provides coverage to a defined set of groups - the employees.
Let's say a group of employees are working in a corporate organization. To cover these individuals against accidents, illness or any other medical issues that may arise, the employer purchases a Corporate Health Insurance.
Advantages Of Corporate Health Insurance Plan : For Employers
Attract And Retain Top Talent
It's a no-brainer that the current working-class population consider the benefits package before accepting new job offers. Having a corporate health insurance plan that can provide sufficient coverage can make you an employee-centric company, thereby attracting talents and retaining talented employees.
Tax Benefits Under Income Tax Law
When health insurance for corporate employees was made mandatory by the government, it also came with tax benefits under Section 17 of the income tax law. As per this, the premium paid by the employer towards corporate health insurance is considered part of the business expense.
A CSR Initiative
Corporate Social Responsibility is a company’s commitment to ethical, sustainable, and socially beneficial business practices beyond profit generation. Activities that promote healthcare are considered social welfare practices. By providing corporate health insurance for employees, a corporation showcases its dedication to the well-being of its workforce, aligning with a broader societal objective.
Advantages Of Corporate Health Insurance Plan : For Employees
Family Cover At Minimal Cost
Based on the corporate health insurance plan opted by the employer the coverage can also be extended to the family members of the employees. Often, the employer covers the premium for this coverage, boosting the goodwill of the corporation.
Easy Claim Process
The true value of corporate medical insurance lies in the ease of raising claims. Whether at a network hospital or one outside the insurer's network, employees can effortlessly initiate both cashless and reimbursement claims.
Wide Hospital Network, Expansive Coverage
With corporate health insurance from renowned insurers, you have access to a vast network of hospitals across the country. Furthermore, when a Third-Party Administrator (TPA) is involved, you gain access to an even wider network of hospitals, ensuring comprehensive coverage for your healthcare needs.
How is your corporate health insurance different from regular health insurance?
Eligibility criteria to buy corporate health insurance
The eligibility criterias that a corporate must fulfil to buy corporate health insurance policy are:
1. The company or corporate that wishes to offer corporate insurance for employees must be a legal entity that complies with all the rules and regulations putforth by the state and central government of India.
2. According to the Insurance Regulatory and Development Authority of India (IRDAI) a minimum of 7 employees or more is required to buy a corporate health insurance plan.
3. The employers are eligible to provide corporate health insurance to employees as long as those employees are working for the organization.
Exclusions in your corporate health insurance policy
A corporate health insurance plan comes with certain exclusions that cannot be covered using the policy. They are:
If the employee leaves the organization that provides the corporate health insurance, the coverage will cease to exist.
Cosmetic surgeries like plastic surgery are not usually covered by corporate health insurance
Injuries due to suicide, or usage of alcohol or drugs are not covered in your corporate insurance plan.
Dental treatment and OPD coverage are not included by default in your corporate health insurance. However, additional add-on riders can be added to extend the coverage.
Corporate health insurance with Pazcare
Buying corporate insurance for employees from Pazcare comes with its benefits.
Pick and choose your policy
Our Pazcare Insurance Consultants will help you curate your corporate health insurance that suits your interests. With Pazcare, you can opt for add-ons like maternity coverage, OPD insurance, and health and wellness plans like gym memberships and fully customize your plan for employees.
Time is money. The fully digital process from buying to managing your corporate medical insurance with Pazcare’s employer dashboard streamlines the process, saving time spent on spreadsheets and paperwork. Access policy details, add/delete employees, and monitor utilization in one place for increased visibility and smarter decisions.
Seamless HRMS Integration
Say hi to Pazcare’s app - employees can now file and track the status of their claims on the go. Chat with our internal claims team 24X7 within the Paz app and get your queries answered then and there.
One app for employees
You buy corporate insurance with your employees in mind, so we've simplified the process for their convenience through the Paz app. Employees can easily raise and track claims, access health cards, and access the corporate benefits plan using this app.
Why do 1600+ Corporates trust Pazcare?
You can easily choose and build your benefits package. We have it all.
The Pazcare team was very helpful in helping us with the details and the documents needed for the claim process. Everything about the company is impressive.
The Dashboard is very easy to use and additions and deletion have become extremely easy and seamless. Employees have easy access to insurance details on the app
Hemanth Kumar Addada
The dashboard is also very user-friendly with a very good UI/UX.
Dashboard really helps in getting quick response for any queries and reimbursement
FAQs on corporate health insurance
What is a corporate health insurance?
Corporate health insurance is health insurance coverage offered to a defined set of groups - the employees working in a corporate organisation.
What is the difference between corporate health insurance and health insurance?
Corporate health insurance offers health insurance coverage to all the employees working in an organization. The coverage is usually extended to the family members of the employees. Whereas, regular health insurance is purchased by an individual and the coverage is extended to the family members only after purchasing an add-on rider or a different plan.
What is the minimum number of employees for corporate health insurance?
According to the Insurance Regulatory and Development Authority of India (IRDAI), any corporate organization with a minimum of 7 employees are eligible to purchase a corporate health insurance plan.
Is corporate health insurance mandatory?
Yes, after the nationwide COVID-19 lockdown in 2020, IRDAI has mandated every corporate organization to provide corporate health insurance for employees.
Who pays corporate insurance?
In most cases, the corporate health insurance premium is paid by the organization/the employer.
What are the benefits of corporate insurance?
With corporate health insurance, you can cover all your pre-existing diseases with a medical check-up, and extend coverage to your family members at minimal cost, and the premiums are mostly paid by the employer. These perks are not offered on a regular health insurance plan.