A group health insurance policy is an essential part of comprehensive care and a healthy work environment. It focuses on a group of employees and provides them with financial aid under a single GHI policy.
Employees are the backbone of an organisation, and they need to be protected and nurtured at any cost. One crucial aspect of this protection is the group health care plans. Many employers wonder if it is a good decision to invest in a GHI policy and whether or not it is mandatory in India.
Yes! Group medical insurance for employees in India is mandatory by law. Let’s learn more about this mandate.
Reasons Why Buying Group Health Insurance For Employees in India is Mandatory
Earlier, buying group medical insurance for employees in India was not compulsory. However, with changing times, insurance rules and regulations changed as well. When the COVID-19 pandemic hit the world in April 2020, the IRDAI, i.e., the Insurance Regulatory and Development Authority of India, announced some strict changes.
One of the many health-related changes was the mandate regarding the mediclaim policy for employees in India. IRDAI made it mandatory for employers to provide adequate health insurance coverage to their employees. This mandate from the regulatory guidelines helped ensure the safety and health of employees amidst the pandemic.
The pandemic years were a bleak time for everyone, financially and emotionally. This rule announced by the IRDAI just made an effort to do the right thing.
Basic Coverage of The Best Group Health Insurance Policy in India
Insured individuals include employees, their dependent children, parents and spouses, with a provision to add dependent mid-term, such as newborns. The policy covers:
- Hospitalisation costs
- In-patient treatment fees
- Pre and post-hospitalisation expenses
- A single day surgeries or treatment fees
- Maternity cover (for female employees and male employee’s spouse)
- Baby day one care expenses
- Pre and post-natal expenses
- Organ transplant surgeries
- Ambulance costs
- Family transportation expenses
Benefits of a Group Health Insurance Policy
● Tax Benefits for Employers
When it comes to group health insurance, tax deductibles are one of the many benefits you need to know as an employer. As an employer, you might think, “What’s in it for me?” Well, there are tax benefits! Both employers and employees can benefit from the tax deduction applicable under section 80D of the Income Tax Act of India.
Since the premium is paid by both the parties, the employees and the employer, the deduction will be proportional to their contribution to the premium. By deducting the paid amount from your total taxable income, you can reduce your tax amount.
● Employee Retention
Offering your employees the most affordable and best group health insurance policy in India will definitely allow them to trust you better. Most of the time, employees prefer to be in a safe space where they feel protected. When you provide them with comprehensive financial and medical security, they will prefer your company over others.
● Employee Motivation
As mentioned above, security and financial support often help employees feel protected. One of the biggest reasons people choose jobs with higher remuneration is that they feel safe with more money in this changing world.
Provide them with a great GHI policy in addition to a good salary. This way, you can not only attract and retain employees but also motivate them and boost their morale to work even more qualitatively.
● Comprehensive Protection
The GHI policy often comes with comprehensive coverage that can be customised according to the insured members’ preferences. This coverage protects the employees and their families from medical emergencies, further enhancing their job satisfaction.
You can claim pre-hospitalisation expenses like ambulances, doctor visits, screenings, and more. At the same time, you can also file claims for hospitalisation and post-hospitalisation expenses of your medical emergency.
● Cost-Efficient and Affordable
There are many affordable policies. However, there are very limited policies that offer you value for money that you invest in the insurance. This makes buying the best GHI policy a non-negotiable aspect. When you buy a good policy, you can enjoy more benefits at lower premiums.
● Pre-Existing Disease Coverage
Good insurance companies offer great benefits, like coverage for pre-existing diseases. For instance, TATA AIG offers financial compensation for pre-existing illnesses without any waiting period, i.e., from the first day.
Conclusive Thoughts
The mandate that says buying a mediclaim policy for employees in India is mandatory ensures health, both physical and financial alike. By making this a rule, the IRDAI has emphasised the importance of nurturing and protecting your employees since the policy not only benefits employees but also employers; you should never think twice before enjoying the perks.
