group health insurance

Best Group Health Insurance for your Employees

A one‑stop, data‑rich guide for Indian employers who want to protect their people, slash absenteeism, and convince CFOs with measurable ROI. Bookmark it now—refer back at renewal time.

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100,000
Claims processed
600,000
Lives covered
6,000
Companies

Why Group Health Insurance Matters

Imagine one of your employees falls seriously ill and needs immediate hospitalisation. Without insurance, a single hospital bill can run into lakhs. Now imagine the same employee is covered under a plan you bought for your team — the bill is mostly paid by the insurer, and the employee and their family are grateful to you for providing the cover. That is the power of group health insurance.
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In India, where personal health cover is still underused, employer-provided insurance is critical. According to IRDAI’s 2023–24 annual report, India’s insurance penetration (the percentage of GDP spent on insurance) was only 3.7%, with health insurance making up a big chunk of the non-life segment. That means most Indians don’t buy health insurance on their own — they rely on their employer.

For an employer, offering group health insurance is more than a perk. It’s a way to:
  • 01.

    Compete in the talent market

  • 02

    Retain employees longer

  • 03.

    Reduce absenteeism caused by health costs

  • 04.

    Build trust with your workforce

Table of contents

What is Group Health Insurance?

At its simplest, group health insurance is a single health insurance policy purchased by an employer to cover its employees (and sometimes their families). Instead of each employee buying their own retail policy, the employer negotiates one master policy with an insurance company, under which every employee is enrolled.

How It Works

  • 01.

    The employer pays the premium, either fully or partially.

  • 02.

    The insurer issues one master policy covering all employees.

  • 03.

    Employees receive immediate access to the policy benefits from day one of employment.

Unlike individual health insurance, there is no requirement for medical tests at the time of joining, and coverage is automatic as soon as the employee is added to the payroll.

What It Covers

Most group health insurance policies in India cover:

  • Hospitalisation expenses

    Costs of admission, treatment, and stay in hospitals.

  • Day-care treatments

    Medical procedures like cataract surgery or dialysis that don’t require overnight hospitalisation.

  • Pre- and post-hospitalisation expenses

    Usually 30 days before and 60–90 days after hospitalisation.

  • Dependents

    Many employers extend cover to employees’ spouses, children, and sometimes parents.

  • Add-ons

    Maternity cover, OPD (outpatient) benefits, and wellness programs.

How It Differs from Individual Health Insurance

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  • Immediate cover

    Individual policies usually have waiting periods (2–4 years for pre-existing diseases). Group plans often waive these.

  • Maternity cover

    Typically excluded or delayed in retail plans, but often included in group policies from day one.

  • Cost

    Premiums for group policies are much lower on a per-person basis because the risk is spread across the entire workforce.

  • No underwriting

     Retail policies require health declarations and sometimes medical tests; group policies don’t.

A Simple Example

Rohit, a 28-year-old software engineer, joins a mid-sized IT firm. On his first day, he is automatically covered under the company’s group health insurance policy with a sum insured of ₹5 lakh. A month later, he undergoes an appendix surgery costing ₹2.8 lakh. The insurer settles the hospital bills directly under the company policy. Rohit did not have to buy a personal plan, undergo medical checks, or pay anything out of pocket beyond small non-medical expenses.

In summary: Group health insurance is the most cost-effective way for employers to protect employees and their families against rising medical expenses. For many Indians, it is the only health cover they have, making it a cornerstone benefit.

How Group Health Insurance Works

When a company buys group health insurance, it’s essentially purchasing a single umbrella policy that covers all employees under one contract. Unlike individual insurance, where every person negotiates separately, this is a pooled arrangement that simplifies administration and lowers costs.

1. The Master Policy

The insurer issues one master policy in the company’s name. All eligible employees (and sometimes their dependents) are automatically enrolled under it. There is no need for employees to fill long health forms or go through medical tests.

2. Eligibility and Enrollment

  • New employees

    are usually covered from their date of joining.

  • Dependents

    (spouse, children, and sometimes parents) can be included either automatically or at the employee’s request.

  • Exits

    are handled when an employee leaves — coverage ends immediately.

👉 This makes group health insurance highly flexible, with coverage moving in and out as employees join or leave.

3. Sum Insured: Individual vs Floater Cover

  • Individual cover

    Each employee (and their dependents) get their own sum insured. For example, each family member may get ₹5 lakh separately.

  • Floater cover

    The entire family shares one sum insured. For example, a family of four may share ₹5 lakh collectively.

👉 Employers often choose floater covers because they are cheaper, but individual covers provide more certainty for larger families.

4. Premiums and Who Pays Them

  • Employer-paid

    In most cases, the employer covers the full premium.

  • Shared contribution

    Some employers pay the premium for employees only, while employees contribute for dependent coverage (especially for parents).

  • Tax treatment

    For employers, premiums are treated as a business expense and are tax-deductible.

5. Claims: Cashless vs Reimbursement

  • Cashless claims

    Employees get admitted to a network hospital, and the insurer/TPA pays bills directly. Employees pay only non-medical expenses.

  • Reimbursement claims

    If the hospital isn’t in the insurer’s network, employees pay upfront and then submit bills for reimbursement.

  • Tax treatment

    For employers, premiums are treated as a business expense and are tax-deductible.

👉 Most insurers today offer large network hospital lists for cashless convenience.

6. Administration and HR’s Role

The employer’s HR team coordinates with the insurer or a Third-Party Administrator (TPA) to:

  • Add/remove employees and dependents.

  • Share employee census data at policy start.

  • Support employees with claim queries.

Modern providers offer digital dashboards where HR can handle these tasks in real time.

A Quick Example

Neha, who works in HR at a fintech startup, manages her company’s group health insurance for 80 employees. When a new hire joins, she simply uploads their details into the insurer’s portal. That employee is covered from the next day. When another employee resigns, Neha deletes them from the dashboard, and coverage stops immediately.

In short: Group health insurance works by pooling risk across a company’s workforce, making premiums cheaper, administration easier, and coverage broader than individual retail plans.

Why Group Health Insurance Matters in India

Healthcare costs in India are rising faster than salaries. According to CareEdge Ratings, medical inflation in India stood at nearly 14% in 2022, the highest among Asian countries. This means a hospital bill that cost ₹1 lakh three years ago could now cost closer to ₹1.5 lakh — and the gap is only widening.

For employees, such expenses can wipe out savings in a matter of days. For employers, failing to provide protection against these costs can directly affect productivity, loyalty, and retention.

The coverage gap

Despite the growing risk, a large portion of the Indian workforce remains underinsured. Surveys indicate that around 60% of professionals rely solely on their employer’s group health cover, with no personal backup. This puts immense pressure on the employer’s plan to be both comprehensive and reliable.

Why it matters for employers

  • Retention and attraction

    Health benefits are among the top three factors employees consider before joining a company (Mercer India Benefits Survey).

  • Productivity

    Financial stress from medical bills often leads to absenteeism and disengagement at work.

  • Reputation

    In competitive industries, offering robust group health insurance signals that the company cares about employee well-being, not just profits.

Why it matters for employees

For employees, group health insurance is often the first real form of medical protection they ever receive. Individual health policies may be expensive or require medical underwriting, but with group plans:

  • Coverage starts from day one of employment.

  • Pre-existing diseases (PEDs) may be covered immediately.

  • Family members can often be added at subsidised costs.

In short: With healthcare costs climbing and most workers lacking individual policies, group health insurance has become one of the most essential benefits in India today. It’s not just a perk — it’s a financial safety net that protects both employees and employers from the spiralling costs of modern healthcare.

Benefits for Employers and Employees

When a company buys group health insurance, it’s essentially purchasing a single umbrella policy that covers all employees under one contract. Unlike individual insurance, where every person negotiates separately, this is a pooled arrangement that simplifies administration and lowers costs.

Benefits for Employers

  • 1. Affordable way to show care

    Group health insurance is one of the lowest-cost, highest-impact benefits an organisation can provide. Premiums are much cheaper on a per-employee basis compared to individual retail plans, because risk is pooled across the group.

  • 2. Talent attraction and retention

    A Mercer India survey found that health benefits are among the top three factors influencing job decisions. Offering robust coverage makes your company stand out during hiring and reduces attrition, since employees feel supported.

  • 3. Productivity boost

    When employees don’t have to worry about how they’ll pay for medical emergencies, they’re more engaged at work. Stress-related absenteeism goes down, and loyalty goes up.

  • 4. Compliance and reputation

    In industries where offering benefits is expected (e.g., IT, BFSI, startups backed by global investors), not offering health cover can harm employer branding. A solid group health policy signals that the organisation takes employee welfare seriously.

  • 5. Flexibility with add-ons

    Employers can customise policies with maternity cover, wellness benefits, or parental coverage, depending on workforce demographics. This adaptability makes it easier to align benefits with employee needs.

Benefits for Employees

  • 1. Financial protection from day one

    Employees are covered the moment they join. Unlike retail plans, where waiting periods can delay coverage for pre-existing illnesses, group plans often waive these restrictions.

  • 2. Coverage for family members

    Spouses, children, and sometimes even parents can be added under the employer’s policy, ensuring that the whole family is protected.

  • 3. Immediate maternity and PED coverage

    Group policies often waive the usual waiting periods for maternity benefits (9 months) and pre-existing diseases (2–4 years). This is one of the biggest advantages over individual plans.

  • 4. Peace of mind

    Knowing that hospitalisation expenses will be covered means employees can focus on recovery, not bills. For many, this is their first and only form of health insurance, making it all the more critical.

  • 5. Preventive and wellness add-ons

    Many modern insurers include teleconsultations, annual checkups, and even mental health counselling. These services help employees stay healthier, not just get treated when sick.

A Quick Story

A fintech startup added group health insurance for its 40 employees. A few months later, one employee’s spouse required an emergency gallbladder surgery costing ₹2.5 lakh. The policy covered the entire expense cashlessly. For the employer, the annual premium for the whole team was just ₹3.5 lakh. For the employee, the reassurance that her family was covered translated into deeper loyalty to the company.

In summary:

  • Employers get a cost-effective benefit that improves hiring, retention, and reputation.

  • Employees get immediate, family-inclusive protection from India’s fast-rising medical costs.

This is why group health insurance is often called the cornerstone of employee benefits in India.

Why Plum Is a Preferred Choice for Group Health Insurance

For most organisations, group health insurance isn’t just a compliance or cost decision — it’s about ease of administration, employee trust, and how quickly support arrives during a medical emergency. Plum stands out because it simplifies these parts of the experience, while still operating within IRDAI-approved insurance structures.

1. Faster Setup and Zero Manual Administration

Traditional group health insurance often takes 2–3 weeks to activate and depends on Excel sheets and email coordination. With Plum:

  • Policies can go live in 24–72 hours

  • Employees receive digital health cards instantly via email or WhatsApp.

  • HR can add or remove employees in real time through a dashboard.

This reduces paperwork and helps new employees get covered from day one.

2. Reliable Claims Support Backed by High Satisfaction

Insurance is truly tested during claims. According to YourStory (2022), Plum recorded a Claims NPS of 79, significantly higher than the industry average of 19.

Employees and families receive step-by-step help during hospitalisation or reimbursement filing — no IVR systems or unresponsive TPAs.

3. Faster Reimbursement Turnaround

LiveMint (Oct 2023) reported that Plum’s e-Reimburse system has reduced reimbursement claim processing from 7 days to, in some approved cases, less than 1 hour. This is possible when documents are complete and verified digitally.

4. Scalable Platform Trusted by Businesses

As per the Plum Employee Health Report 2025, the platform now supports 6,000+ companies and 600,000+ insured members — ranging from startups to large enterprises. This adoption reflects trust in both technology and service reliability.

5. Modern Coverage and Preventive Healthcare

Plans offered via Plum’s partner insurers can include:

  • Day 1 coverage for pre-existing diseases and maternity (if waiting period waivers are chosen).

  • Coverage for modern treatments such as robotic surgery, stem cell therapy, and oral chemotherapy.

  • Built-in wellness: teleconsultations, mental health counselling, diagnostics discounts, and health check-ups.

These additions make health benefits more proactive, not just reactive.

In summary: Plum doesn’t replace insurers — it improves how group health insurance is delivered. Faster onboarding, transparent claims, verified satisfaction scores, and preventive care make it a strong choice for employers who want benefits that truly work when employees need them most.

Policy Waivers and Day-One Coverage

One of the strongest reasons companies opt for group health insurance is that it waives or shortens waiting periods that usually frustrate buyers of retail health plans. For employees, this translates into immediate and meaningful protection from day one.

Waiting Periods in Retail Health Insurance

In individual policies, insurers limit risk by imposing waiting periods:

  • Pre-existing diseases (PEDs): Usually excluded for 2–4 years.

  • Maternity benefits: Typically excluded for 9 months to 3 years.

  • Specific treatments: Surgeries like hernia or cataracts often carry a 1–2 year waiting period.

This means an employee who buys an individual plan today may have to wait years before getting coverage for conditions they already have or benefits they really need.

How Group Health Insurance Waives These

With group policies, insurers are willing to relax these restrictions because the risk is spread across a larger pool of employees. As a result:

  • Pre-existing diseases are usually covered from day one.

  • Maternity cover often kicks in immediately (with coverage for both normal and C-section deliveries).

  • New hires are covered from their joining date, with no waiting periods.

Why This Matters for Employees

  • Someone with diabetes or hypertension doesn’t have to wait years for hospitalisation coverage.

  • Employees planning a family don’t have to delay maternity benefits.

  • Families of new employees don’t have to worry about a gap between job change and cover.

Example: Rina, who has thyroid and hypertension, switched jobs to a company with group health insurance. Under her employer’s plan, her pre-existing conditions were covered immediately. If she had relied on a retail plan, she might have had to wait 3 years before claiming for related hospitalisations.

What Employers Should Check

Not all policies waive all waiting periods automatically. HR teams should confirm:

  • Are all PEDs covered from day one, or are some excluded?

  • Is maternity coverage part of the base plan or an add-on?

  • What is the maximum maternity limit (₹30,000, ₹50,000, or more)?

  • Are new hires added immediately, or only at the next policy renewal?

Takeaway:

The ability to waive waiting periods makes group health insurance vastly more valuable than retail health insurance. For employees, it means immediate security. For employers, it’s one of the most attractive features they can highlight while recruiting.

Modern Treatments Coverage

Over the past decade, healthcare has advanced rapidly in India. Treatments that were once considered experimental — like stem cell therapy or robotic surgery — are now part of mainstream medical practice. But these treatments are also expensive, often costing several lakhs of rupees.

That’s where modern treatments coverage under group health insurance becomes essential.

What “Modern Treatments” Usually Include

Most insurers in India now include a list of advanced procedures in group policies. These may cover:

  • Robotic surgeries (e.g., robotic prostatectomy, cardiac bypass)
  • Oral chemotherapy (medications instead of IV hospital treatment)
  • Stem cell therapy (for certain approved conditions)
  • Deep brain stimulation (for Parkinson’s disease)
  • Balloon sinuplasty, laser treatments, and newer minimally invasive surgeries

👉 The IRDAI has standardised many of these treatments, requiring insurers to include them in health insurance contracts.

Why It Matters

  • Rising demand: Hospitals are adopting these methods because they reduce recovery time.
  • High costs: A robotic cardiac surgery can cost ₹4–6 lakh, nearly double the cost of traditional surgery.
  • Employee expectations: Employees assume “hospitalisation” means everything is covered. Excluding modern treatments can create disputes.

Sub-Limits and Co-Pays

Here’s the catch: some insurers cap the amount they will pay for modern treatments.

  • Example: A policy may cover robotic surgery but limit payout to ₹2 lakh, even if the procedure costs ₹5 lakh.
  • Others may allow full coverage but impose a co-pay (e.g., 20% borne by the employee).

What Employers Should Clarify

Before finalising a policy, HR teams should ask:

  1. Which modern treatments are included by default?
  2. Are there sub-limits on specific procedures?
  3. Is there a co-pay requirement?
  4. Does the list update automatically as IRDAI revises guidelines?

A Simple Example

Suresh, a 45-year-old employee, undergoes oral chemotherapy for cancer treatment. His individual retail policy would have excluded oral chemotherapy. But under his company’s group health insurance, it was fully covered — saving his family nearly ₹3 lakh in out-of-pocket costs.

Takeaway:
 Group health insurance ensures employees don’t face financial shocks when opting for advanced treatments. Employers should check fine print carefully to ensure that coverage is broad and not limited by hidden sub-limits.

Corporate Buffer (Floater) Explained

Even with a generous group health insurance policy, there are times when an employee’s medical bills exceed their sum insured. For example, a ₹5 lakh cover might fall short if an employee undergoes cancer treatment or organ transplant. This is where the corporate buffer, also called a corporate floater, comes into play.

What is a Corporate Buffer?

A corporate buffer is an additional pool of money set aside by the employer on top of the regular sum insured. It can be used by employees whose hospitalisation costs exceed their individual or family cover.

Think of it as a safety net that kicks in when regular coverage is exhausted.

How It Works

  • The employer negotiates a buffer amount with the insurer (e.g., ₹20 lakh for the entire company).
  • This buffer is shared by all employees — it is not allocated individually.
  • Access to the buffer usually requires HR or employer approval, since it’s a limited resource.

When It’s Used

Corporate buffers are typically reserved for:

  • Critical illnesses like cancer, kidney failure, or heart disease.
  • Organ transplants, where costs can exceed ₹10–15 lakh.
  • Unusually high hospital bills that cannot be covered within the base sum insured.

Example:
An employee with ₹5 lakh base cover undergoes liver transplant surgery costing ₹12 lakh.

  • The first ₹5 lakh is covered under their regular insurance.
  • The remaining ₹7 lakh is drawn from the corporate buffer, with employer approval.

Employer Controls

Because the buffer is shared, companies often set guidelines:

  • Maximum draw per employee (e.g., ₹10 lakh).
  • Priority for life-threatening or critical cases.
  • HR approval process before the buffer can be tapped.

Why It Matters for Employers

  • Adds security without steep costs: Buffers are cheaper than raising everyone’s base cover.
  • Protects against rare but catastrophic claims: Ensures employees aren’t financially ruined by exceptional medical events.
  • Improves employee trust: Families know the company will support them in worst-case scenarios.

What to Watch Out For

  • Clarify with the insurer how quickly buffer claims are processed.
  • Ensure employees know the process — who to contact, what documents are needed.
  • Keep the buffer pool realistic; too small and it creates frustration, too large and premiums may rise unnecessarily.

Takeaway:
 The corporate buffer is a powerful way for employers to show extra care without significantly increasing costs. It transforms group health insurance from just a basic cover into a comprehensive safety net against catastrophic medical expenses.

Inclusions vs Exclusions in Group Health Insurance

When buying group health insurance, one of the most confusing parts is understanding what’s actually covered and what isn’t. Employees often assume “hospitalisation” means all medical costs are included, but every policy comes with specific inclusions and exclusions. Knowing these upfront helps avoid disputes during claims.

Common Inclusions

Most group health insurance policies in India typically cover:

1. Hospitalisation Expenses

  • Room rent, ICU charges, nursing, and doctor’s fees.
  • Medicines, diagnostic tests, and surgical procedures.

2. Day-Care Procedures

  • Surgeries or treatments that don’t require a 24-hour hospital stay, like cataract surgery, dialysis, or chemotherapy.

3. Pre- and Post-Hospitalisation Expenses

  • Usually 30 days before and 60–90 days after hospitalisation. Includes consultations, diagnostics, and medicines.

4. Maternity Cover

  • Normal and C-section deliveries, often with a limit (e.g., ₹30,000–₹50,000).
  • May include newborn cover for the first 90 days.

5. Ambulance Charges

  • Typically up to ₹2,000–₹5,000 per hospitalisation.

6. Modern Treatments

  • As mandated by IRDAI, many advanced procedures like robotic surgery, oral chemotherapy, and stem cell therapy are now covered.

Common Exclusions

Despite wide coverage, some expenses are excluded to keep premiums affordable and prevent misuse. These fall into two categories:

1. Permanent Exclusions (Never Covered)

  • Cosmetic surgery (unless required after an accident).
  • Fertility and infertility treatments (IVF, surrogacy).
  • Experimental or unproven treatments.
  • Vitamins, tonics, or health supplements unless prescribed for a covered condition.

2. Temporary Exclusions (Covered Later or with Riders)

  • Certain specific diseases (hernia, joint replacement, cataract) may be excluded for 1–2 years unless waived.
  • Pre-existing diseases (PEDs) — usually excluded for 2–4 years in retail plans but often covered from day one in group health insurance.

Why Exclusions Exist

  • To keep group premiums affordable.
  • To discourage claims for non-medical or lifestyle-related expenses.
  • To protect against fraudulent or inflated hospital bills.

A Quick Example

Meera, an employee at a startup, undergoes cataract surgery. Under her company’s group health insurance, the entire cost (₹45,000) is covered as a day-care procedure. A colleague who only had a retail plan had to wait two years for cataract surgery cover to begin.

Takeaway:
 Group health insurance covers most hospitalisation and essential medical expenses, but exclusions still apply. Employers should clearly communicate both inclusions and exclusions to employees so there are no unpleasant surprises at the time of claims.

How to Compare Group Health Insurance Plans

With so many insurers and brokers offering group health insurance, it’s tempting to just look at premiums and pick the cheapest plan. But health insurance is more than a line item in your budget — it’s the safety net your employees and their families rely on. Two plans may cost the same but differ drastically in what they cover.

Here’s how to compare plans the right way.

1. Premium vs. Coverage Balance

  • Don’t be tempted by the cheapest premium — low cost often means restrict
  • Look closely at the sum insured per employee/family and whether it’s adequate for major hospitalisations.
  • Example: A ₹3 lakh cover may look affordable but is often insufficient for a single cardiac surgery, which can cost ₹4–6 lakh in metro hospitals.

2. Claim Settlement Ratio (CSR)

  • The CSR shows how many claims an insurer settles versus those received.
  • Look for insurers with 95%+ settlement ratios for health claims (IRDAI publishes these annually: IRDAI Annual Report).
  • A lower premium is meaningless if claims are routinely delayed or rejected.

3. Network Hospitals

  • Check the size and spread of the cashless hospital network in your employees’ locations.
  • A plan with 10,000 hospitals nationwide isn’t useful if your workforce is in Tier-2 cities with poor network coverage.
  • Cashless access is crucial; reimbursement claims create frustration for employees.

4. Waiting Period Waivers

  • Confirm whether pre-existing diseases (PEDs) are covered from day one.
  • Check if maternity waiting periods are waived and what the maternity limit is.
  • These are major differentiators between group and retail policies.

5. Room Rent Limits

  • Some policies cap room rent (e.g., ₹5,000 per day). If the employee opts for a higher category room, all associated charges (doctors, procedures) may be partially disallowed.
  • Always check if your policy has a room rent cap or if it allows “any room category.”

6. Add-Ons and Riders

  • Maternity, newborn cover, OPD benefits, mental health, wellness checkups — are they included or optional?
  • Small riders can significantly improve employee satisfaction.

7. Digital Administration and Claims Support

  • Does the insurer offer a self-service app for employees?
  • Can HR add/delete employees mid-year without paperwork?
  • Are claims handled directly by the insurer, or via a Third Party Administrator (TPA)? Direct claim handling usually means faster service.

8. Renewal Terms

  • Check for premium loading if the company has a bad claim year.
  • Understand whether the insurer offers a multi-year deal to lock in pricing stability.

Sample Comparison Table

Feature Plan 1 Plan 2 Plan 3
PED cover From day one 2 years wait From day one
Maternity limit ₹30,000 ₹50,000 ₹25,000
Room rent limit ₹5,000/day No cap ₹3,000/day
CSR (health) 98% 95% 93%
Digital app Yes Yes No

Takeaway:
 When comparing group health insurance plans, always go beyond premiums. Focus on claims reliability, hospital networks, waiting period waivers, and room rent limits. These factors decide whether your employees feel truly protected or left disappointed when they need help the most.

How to Buy Group Health Insurance: Step-by-Step Guide

Buying group health insurance for the first time can feel complicated. Between technical terms, insurer negotiations, and employee expectations, it’s easy to get lost in the details. Here’s a simple step-by-step roadmap to make the process straightforward.

Step 1: Assess Your Workforce Needs

Start with your employee base:

  • Team size: Small teams (under 50) usually go for fixed-sum insured; larger firms can consider salary-linked cover.
  • Demographics: Younger teams may prioritise maternity benefits, while older workforces may value PED coverage and parental cover.
  • Dependents: Decide whether to cover just employees, or extend to spouses, children, and parents.

👉 The clearer your needs, the easier it is to design the right plan.

Step 2: Decide the Sum Insured Model

  • Individual cover: Each employee gets their own sum insured (e.g., ₹5 lakh).
  • Floater cover: Employees and dependents share a common pool (e.g., ₹5 lakh per family).
  • Corporate buffer: Decide if you want an additional shared fund for critical cases.

Tip: Most SMEs choose a floater model for cost-effectiveness, but individual cover provides greater certainty for families.

Step 3: Collect Employee Census Data

Insurers need basic employee details to price a plan:

  • Name, age, gender
  • Job role and location
  • Family size (if dependents are covered)

👉 Ensure accuracy — incorrect data leads to delays in claims and renewals.

Step 4: Request Multiple Quotes

Approach at least 3–4 insurers directly, or work with a broker/aggregator to get quotes.
Compare:

  • Premiums
  • Coverage (maternity, PEDs, modern treatments)
  • Room rent limits
  • Hospital networks
  • CSR (claim settlement ratio)

Step 5: Negotiate Add-Ons and Riders

Don’t settle for the default package. Ask for:

  • Maternity benefits (₹30,000–₹50,000 is standard, but can be higher).
  • Newborn cover (90 days).
  • Wellness add-ons like checkups and teleconsults.
  • No room rent limits for smoother claims.

Step 6: Review the Fine Print

Always ask for the annexure — it contains details on:

  • Disease-wise sub-limits (e.g., cataract, hernia).
  • Exclusions (cosmetic, fertility, lifestyle diseases).
  • Claim procedures and timelines.

👉 Many first-time buyers overlook this and get surprised at claim time.

Step 7: Finalise and Issue the Policy

  • Share final employee census.
  • Pay premium (usually annual).
  • Receive the policy schedule and annexures.
  • Coverage begins immediately — no waiting periods for most conditions.

Step 8: Communicate Clearly with Employees

Insurance is only useful if employees know how to use it. Provide:

  • E-cards or policy details to each employee.
  • A simple FAQ guide explaining inclusions, exclusions, and claims process.
  • Orientation sessions for employees and HR points of contact.

Step 9: Review Annually

Renewals are the right time to:

  • Adjust sum insured for inflation.
  • Add or remove dependents.
  • Negotiate better premiums based on claims history.

Quick Example:
 A 100-employee SME in Bengaluru opted for a ₹5 lakh floater plan with maternity cover and PED waiver. Annual premium: ₹9 lakh (~₹9,000 per employee). Within the year, three employees’ families used the maternity benefit, and one cancer claim exceeded ₹7 lakh, partly covered by the corporate buffer. Employees rated the benefit as one of the top reasons for job satisfaction.

Takeaway:
 Buying group health insurance is less about chasing the lowest premium and more about designing a policy that matches your workforce’s needs. With a clear process, you can secure meaningful coverage without overspending.

Premiums and Cost Factors in Group Health Insurance

One of the first questions HR managers and business owners ask is: “How much does group health insurance cost per employee?” The answer is: it depends. Premiums are influenced by several factors, but in most cases, group health insurance remains far more cost-effective than employees buying individual retail plans.

Typical Premium Ranges

  • SMEs with younger teams: ₹6,000–₹9,000 per employee annually for a ₹5 lakh cover.
  • Enterprises with mixed demographics: ₹10,000–₹15,000 per employee annually for a ₹5 lakh cover with dependents.
  • Parental coverage: Can double or triple premiums, since older dependents are higher risk.

👉 For context: A ₹5 lakh individual retail health plan might cost ₹12,000–₹18,000 annually for a single person — and often excludes PEDs and maternity for years.

Key Factors That Influence Premiums

1. Workforce Age Mix

  • Younger workforces = lower premiums.
  • Older employees (45+) increase premiums significantly due to higher hospitalisation risks.

2. Location of Workforce

  • Metro cities (Delhi, Mumbai, Bengaluru) = higher premiums because of higher treatment costs.
  • Tier-2 and Tier-3 towns = relatively cheaper.

3. Family Size and Dependents

  • Covering only employees keeps costs lower.
  • Adding spouses and children increases premiums by 20–30%.
  • Adding parents can raise premiums by 100% or more.

4. Past Claim History

  • If a company has had high claims in the past, insurers may load (increase) premiums at renewal.
  • Good claims history may help negotiate discounts.

5. Policy Design Choices

  • Room rent limits: Removing caps may raise premiums slightly.
  • Maternity cover: Adds 10–15%.
  • Corporate buffer: Small additional cost but huge value.
  • Wellness benefits (OPD, teleconsults): Adds to premium but improves employee engagement.

6. Sum Insured

  • Higher coverage = higher cost.
  • Example: Increasing from ₹5 lakh to ₹10 lakh cover may increase premiums by ~40–50%, not double.

Example Premium Scenarios

Startup (50 employees, average age 28, metro location):

  • ₹5 lakh floater cover for employees + spouses.
  • No parental cover.
  • Premium: ~₹6,000 per employee per year.

Manufacturing SME (200 employees, average age 35, includes dependents):

  • ₹5 lakh floater cover for employees, spouses, and 2 kids.
  • Maternity + PED waiver included.
  • Premium: ~₹9,500 per employee per year.

Large IT firm (1,000 employees, average age 32, parental cover included):

  • ₹5 lakh base cover for employees, spouses, kids.
  • ₹3 lakh parental cover per parent.
  • Premium: ~₹18,000–₹20,000 per employee per year.

Takeaway

Premiums for group health insurance depend on age, family size, geography, and claims history. Employers should balance cost and coverage carefully — a slightly higher premium for broader coverage (like parental inclusion or no room rent caps) can have an outsized impact on employee satisfaction and retention.

Portability and Continuity of Coverage

A common question employees ask is: “What happens to my health insurance if I leave the company?” With group health insurance (GHI), coverage is tied to employment. Once an employee resigns, retires, or is terminated, their cover under the company’s policy ends immediately.

But thanks to IRDAI regulations, employees do have some options to maintain continuity of coverage.

Why Group Health Insurance Isn’t Automatically Portable

  • Group policies are purchased by employers as a bulk contract.
  • Premiums are based on the pooled risk of the workforce.
  • Once an employee exits, they’re no longer part of that pool.

This means they lose access to the policy unless special provisions are made.

Migration to Individual Health Insurance

The IRDAI (Health Insurance) Regulations, 2016 allow employees leaving a company to migrate from a group plan to an individual health insurance plan offered by the same insurer.

Key rules:

  • Migration must be requested within 30 days of exit.
  • The employee pays the premium directly for the new individual plan.
  • The new plan may carry forward benefits earned under the group plan, such as reduced waiting periods for PEDs.

👉 Example: An employee who had 3 years under a group plan moves to an individual plan with the same insurer. Instead of waiting 4 years for PED cover, their waiting period might be reduced or waived entirely.

Portability Between Insurers

Employees can also port their group cover into a retail health insurance plan from a different insurer. However, in practice, this is less common since it requires medical underwriting and fresh premium negotiations.

Voluntary Continuity Programs by Employers

Some progressive employers negotiate options with insurers to allow outgoing employees (especially retirees) to continue cover on their own cost. These “buy-up” or “retiree cover” options are becoming popular in larger enterprises.

Why It Matters for Employees

  • Losing health insurance suddenly can be risky, especially for older employees or those with dependents.
  • Buying a fresh retail policy after leaving may be expensive or rejected due to health conditions.
  • Migrating ensures continuity of coverage without starting waiting periods all over again.

Employer Best Practices

  • Clearly inform employees at exit that group cover stops immediately.
  • Share details about migration or portability options.
  • Support employees in applying within the 30-day window.

Example:
Meena, a 42-year-old employee with diabetes, left her company after 7 years. Normally, a retail plan would exclude her condition for 3–4 years. But since she migrated her group plan into an individual one within 30 days, her diabetes was covered without waiting, saving her potential out-of-pocket costs of ₹2–3 lakh in the first year.

Takeaway:
 Group health insurance ends with employment, but IRDAI rules give employees a window to migrate or port their coverage. Employers who educate staff about these rights demonstrate genuine care and help prevent employees from being left uninsured.

Digital Administration and HRMS Integration

A decade ago, managing group health insurance (GHI) meant Excel sheets, long email chains with insurers, and frustrated employees waiting weeks for updates. Today, much of this has been digitised, making the process faster and more transparent for both HR and employees.

For Employers and HR Teams

1. Dashboards for Real-Time Management
 Most modern insurers and brokers provide digital dashboards where HR can:

  • Add or delete employees as they join or exit.
  • Update dependent information (e.g., adding a newborn).
  • View claim usage and track premium balances.

This ensures that employees are covered from day one without tedious paperwork.

2. HRMS Integration
 Some insurers integrate directly with the company’s HR management system. This means employee records automatically sync with the insurance policy — no manual uploads needed. For fast-growing startups or large enterprises, this eliminates delays and reduces errors.

3. Renewal and Analytics
 Digital systems let HR track how employees are using their benefits:

  • Number of claims filed.
  • Types of claims (maternity, chronic conditions, accidents).
  • Claim ratios that affect next year’s premiums.

This data helps employers design smarter policies at renewal.

For Employees

1. Digital Health Cards
 Instead of carrying physical cards, employees can access their insurance details via e-cards on mobile apps or emails.

2. Self-Service Portals
 Employees can:

  • Check hospital networks.
  • Download claim forms.
  • Intimate claims online instead of relying solely on HR.

3. Faster Claims
 Many insurers allow cashless pre-authorisation via mobile apps, reducing admission delays. Reimbursement claims can also be tracked online, with status updates like “documents received,” “under review,” or “approved.”

Why This Matters

For HR: Less paperwork, fewer errors, and faster enrolments.
For employees: More control, less confusion, and quicker claims.

In stressful situations like hospitalisation, speed and clarity matter more than anything. Digital administration tools are transforming group health insurance from a reactive benefit to a proactive, employee-friendly service.

Example:
 A startup with 150 employees switched to a digital-first insurer. Previously, adding a newborn to the policy took 2–3 weeks via email forms. With the dashboard, HR could add the child instantly, and the coverage was activated within 24 hours — saving the family from out-of-pocket expenses during an emergency admission.

Takeaway:
 Digital administration isn’t just a convenience; it’s now a must-have. Employers choosing group health insurance should insist on digital dashboards and HRMS integration to make the benefit easy to manage and meaningful for employees.

Preventive Care and Wellness Benefits

Traditionally, health insurance was seen only as a backup for medical emergencies. But modern group health insurance (GHI) in India is shifting from just “paying for illness” to helping employees stay healthy in the first place. This not only improves employee well-being but also reduces long-term claim costs for employers.

Preventive Care Services

1. Annual Health Checkups
 Many insurers now offer free or subsidised checkups every year. Early detection of conditions like diabetes, hypertension, and thyroid issues can save employees from costly treatments later.

2. Vaccinations
 Some policies cover flu shots, COVID-19 boosters, and other preventive vaccinations — especially relevant for industries with high exposure.

3. Wellness Screenings
 Diagnostic packages (blood tests, cholesterol checks, etc.) are often included, helping employees track their health markers regularly.

Wellness Add-Ons

1. Teleconsultations
 24x7 access to doctors via phone or video calls. This saves time, reduces absenteeism, and prevents minor issues from escalating.

2. Mental Health Support
 Counselling services, stress management workshops, and Employee Assistance Programs (EAPs) are being included in progressive group health policies.

3. Fitness and Lifestyle Programs
 Discounts on gyms, yoga classes, and digital wellness apps. Some insurers gamify wellness by rewarding employees who track their steps or complete fitness challenges.

Why It Matters for Employers

  • Reduced claims in the long run: Healthy employees are less likely to file major claims.
  • Higher engagement: Wellness benefits show employees that the company cares about more than just emergencies.
  • Productivity boost: Employees who feel physically and mentally healthy are more focused and motivated.

A Quick Example

A Gurugram-based IT firm added teleconsultations and free annual health checkups to its group health plan. Within a year:

  • 40% of employees used teleconsults instead of visiting clinics, saving time.
  • Several employees detected early-stage diabetes and hypertension during screenings.
  • HR reported a drop in sick leave usage by nearly 12% over the next policy year.

Takeaway:
 Group health insurance is no longer just about hospital bills. Preventive care and wellness features are now core to the offering, helping employees stay healthier and helping employers build a more resilient workforce.

Claims Process Explained

Having a policy is only useful if employees know how to actually use it. In group health insurance (GHI), claims can feel intimidating for first-time users — but the process is straightforward once broken down.

There are two main types of claims: cashless and reimbursement.

A. Cashless Claims (Most Common)

Cashless claims are the biggest advantage of group health insurance. Employees get admitted to a network hospital, and the insurer or TPA (Third Party Administrator) pays bills directly.

Step-by-step process:

  1. Find a network hospital: Employees check the insurer’s list of hospitals (via app or website).
  2. Pre-authorisation: At admission, the hospital sends a request to the insurer/TPA. This includes patient details, diagnosis, and estimated costs.
  3. Approval: Insurer approves coverage within 2–6 hours (sometimes faster in emergencies).
  4. Treatment: Employee receives care without paying upfront (except for non-medical expenses like food, gloves, or consumables).
  5. Discharge: The insurer settles bills directly with the hospital. Employee pays only excluded items or amounts above coverage.

👉 Example: Priya undergoes gallbladder surgery at a network hospital costing ₹2.5 lakh. Her group health insurance has a ₹5 lakh limit. The insurer pays the hospital directly. Priya pays only ₹4,500 for consumables not covered.

B. Reimbursement Claims (When Hospital Isn’t in Network)

If treatment happens at a non-network hospital, the employee pays first, then files a claim for reimbursement.

Step-by-step process:

  1. Pay the hospital: Employee or family settles the bill at discharge.
  2. Collect documents: Discharge summary, bills, prescriptions, diagnostic reports, and receipts.
  3. Submit claim: Employee submits documents to insurer/TPA (online or via HR).
  4. Verification: Insurer reviews and may request additional documents.
  5. Payout: Reimbursement is usually processed within 15–30 days.

👉 Example: Ramesh chooses a non-network hospital for knee surgery costing ₹3 lakh. He pays upfront. After submitting documents, the insurer reimburses ₹2.8 lakh within 20 days (₹20,000 deducted for room rent cap).

Common Reasons for Claim Delays or Rejections

  • Missing documents (especially discharge summary or original bills).
  • Non-disclosure of pre-existing conditions (if not covered).
  • Room rent limits exceeded (triggering proportionate deductions).
  • Non-medical expenses claimed (gloves, hygiene kits, etc.).
  • Treatment not covered under inclusions.

Employer & HR Role in Claims

  • Share claim SOPs with employees during onboarding.
  • Assign a single HR point of contact for escalation.
  • Work with insurers who provide digital claims tracking to reduce employee stress.

Why This Matters

For employees, a smooth claim process builds trust in the company. For employers, fast claims reduce frustration and strengthen employee loyalty.

Takeaway:

  • Cashless claims: Hassle-free if using network hospitals.
  • Reimbursement claims: Require more paperwork but still reliable.
  • Success depends on employees knowing the right process and documents — and employers choosing insurers with efficient claims support.

Tax Benefits of Group Health Insurance

Group health insurance is not just a safety net for employees — it also provides financial advantages to employers. Understanding the tax implications makes it easier to see why GHI is one of the most cost-effective benefits a company can offer.

Tax Benefits for Employers

1. Business Expense Deduction

  • Premiums paid for group health insurance are treated as a business expense under the Income Tax Act, 1961.
  • This means employers can claim them as deductions, reducing their taxable income.

👉 Example: If a company spends ₹10 lakh annually on group health insurance premiums, that amount is deducted from profits before tax is calculated.

2. GST Credit (for eligible businesses)

  • In some cases, companies registered under GST may claim input tax credit (ITC) on GST charged in premiums, depending on how the benefit is structured.

3. Retention and Productivity Savings
 While not a direct tax benefit, offering GHI reduces attrition costs and productivity losses. These indirect savings often outweigh the premium cost.

Tax Benefits for Employees

1. Free Coverage Provided by Employer

  • If the employer pays 100% of the premium, employees get the benefit tax-free.
  • They don’t need to declare the employer-paid portion as income.

2. Contribution for Dependents

  • If employees contribute for dependent coverage (e.g., spouse, children, parents), that portion of the premium may be eligible for deduction under Section 80D.

👉 Limits under Section 80D:

  • ₹25,000 for self, spouse, and children.
  • Additional ₹25,000 for parents (₹50,000 if parents are senior citizens).

Example: Ravi’s company pays for his cover, but he pays ₹12,000 extra annually to add his parents. He can claim this under Section 80D as a deduction.

Why This Matters

  • For employers: Group health insurance reduces tax liability while strengthening the company’s EVP (employee value proposition).
  • For employees: Even if they partially pay for dependents, they gain both tax deductions and peace of mind.

Takeaway:
 Group health insurance provides a dual benefit — protection from medical costs and meaningful tax savings. For companies, it’s a deductible expense that also builds goodwill. For employees, it’s a cost-effective way to insure families with additional tax relief under Section 80D.

Regulatory Context

Health insurance in India — whether individual or group — is tightly regulated by the Insurance Regulatory and Development Authority of India (IRDAI). For HR managers and business owners, knowing the regulatory framework helps you evaluate policies confidently and ensure compliance.

Role of IRDAI

  • IRDAI sets the rules for how insurers design, sell, and service group health insurance policies.
  • It ensures transparency in inclusions, exclusions, waiting periods, and claims.
  • Insurers must publish their Claim Settlement Ratios (CSR) annually, which is a key benchmark for buyers.

👉 Resource: IRDAI Official Website

Standardisation of Treatments

IRDAI has standardised coverage for many modern treatments — like robotic surgery, oral chemotherapy, and stem cell therapy. This ensures that insurers cannot arbitrarily exclude these from group policies, making coverage more reliable.

Portability and Migration Rules

The IRDAI Health Insurance Regulations, 2016 provide that:

  • Employees leaving a company may migrate from a group plan to an individual health plan with the same insurer.
  • They must apply within 30 days of exit to retain continuity benefits (like reduced waiting periods for PEDs).

This rule is especially important for employees nearing retirement or those with chronic illnesses.

Role of TPAs (Third Party Administrators)

  • Many insurers use TPAs to manage claims and hospital networks.
  • TPAs are licensed by IRDAI and must follow strict turnaround timelines for approvals and settlements.
  • Insurers may also process claims in-house, which often results in faster handling.

Key Differences from Retail Insurance Regulation

  • Customisation allowed: Unlike retail plans, group policies can be customised (maternity, PED waivers, buffers).
  • Employer control: Employers negotiate terms on behalf of employees, so coverage depends heavily on HR’s choices.
  • Flexibility: Insurers may relax rules for group policies (like waiving waiting periods) — something not allowed in retail plans.

Why This Matters for Employers

  • Ensures policies comply with IRDAI rules.
  • Gives employees confidence that their claims will be handled fairly.
  • Helps HR teams negotiate better terms (PED cover, maternity benefits) with insurers.

Example:
 An SME in Bengaluru negotiated a group plan with maternity benefits and no waiting period for PEDs. While a retail plan could never offer this, IRDAI regulations allow flexibility for group contracts, giving the employer bargaining power to customise benefits for staff.

Takeaway:
 IRDAI regulations make group health insurance both safe and flexible. Employers benefit from the freedom to customise policies, while employees are protected by strict rules that ensure transparency and fair claims.

Case Studies: How Companies Use Group Health Insurance

Statistics and features are helpful, but the real value of group health insurance (GHI) becomes clear when you see how it works in practice. Below are three case studies across different company sizes and industries.

Case 1: Startup – Building Trust and Attracting Talent

Company: A Bengaluru-based fintech startup with 40 employees.
Challenge: The company wanted to compete with larger firms for talent but couldn’t match salaries.
Solution: They purchased a ₹5 lakh floater group health insurance plan covering employees and spouses. Maternity benefits were added since most employees were in their late 20s and early 30s.
Outcome: Within the first year, three employees used maternity cover, and one employee’s spouse underwent surgery costing ₹2.5 lakh, fully covered under the plan. Employee satisfaction surveys showed that health benefits ranked second only to salary as a reason to stay with the company.

Case 2: Manufacturing SME – Managing High-Risk Demographics

Company: A Pune-based auto components manufacturer with 300 employees.
Challenge: The workforce included older employees and factory staff with higher accident exposure, driving up premiums in retail policies.
Solution: They implemented a group health insurance plan with:

  • ₹5 lakh individual cover for each employee.
  • Corporate buffer of ₹25 lakh for critical cases.
  • No room rent limits.
    Outcome: One employee required a bypass surgery costing ₹6.5 lakh. The base policy covered ₹5 lakh, and the remaining ₹1.5 lakh came from the buffer. The company avoided a financial crisis for the employee and improved trust among the shop-floor workforce.

Case 3: IT Services Firm – Supporting Families and Parents

Company: A large IT firm in Gurugram with 1,200 employees.
Challenge: Employees frequently requested parental coverage, but premiums were too high for individual policies.
Solution: The company offered a ₹5 lakh floater policy for employees and immediate families, plus an optional ₹3 lakh cover for parents, where employees paid 50% of the premium.
Outcome: Over 400 employees opted to cover parents. In one case, an employee’s father required hospitalisation for a kidney ailment, with bills exceeding ₹2 lakh. The policy covered the full cost, giving peace of mind to both employee and family. The company’s HR team noted a 12% drop in attrition the following year, citing benefits as a key factor.

Insights from the Case Studies

  • Startups can use GHI to compete for talent without overspending.
  • SMEs benefit from corporate buffers that protect against catastrophic claims.
  • Larger firms can offer flexible parental coverage, balancing cost and employee demand.

Takeaway:
 No matter the size of the company, group health insurance strengthens employee trust, protects families, and enhances the employer brand. Done right, it becomes more than just a benefit — it’s part of a company’s culture of care.

FAQs on Group Health Insurance

Q1: Is group health insurance mandatory in India?
 No, it’s not mandatory under Indian law (except in some states during COVID-19, when it was briefly required). However, it has become an expected benefit in most organised sectors.

Q2: Who is covered under group health insurance?
 By default, employees are covered. Employers can also extend cover to spouses, children, and parents, depending on policy design.

Q3: Does group health insurance cover pre-existing diseases (PEDs)?
 Yes. Unlike retail plans, group policies usually cover PEDs from day one — but always confirm this with your insurer.

Q4: Are maternity expenses covered?
 Yes, many group health insurance policies cover maternity from day one. Limits are usually ₹30,000–₹50,000, though some employers negotiate higher caps.

Q5: Can parents be included in the policy?
 Yes, but this significantly increases premiums because of higher age-related risk. Some employers cover parents fully, while others allow employees to opt in and pay extra.

Q6: How much does group health insurance cost per employee?
 Premiums range from ₹6,000–₹15,000 annually per employee for ₹5 lakh cover. Costs rise if dependents or parents are included.

Q7: Do employees need to undergo medical checkups before joining?
 No. One of the biggest advantages is that employees are automatically covered without medical tests or underwriting.

Q8: What is the difference between floater and individual sum insured?

  • Floater cover: A family shares one sum insured (e.g., ₹5 lakh).
  • Individual cover: Each family member gets their own sum insured (e.g., ₹5 lakh each).

Q9: What documents are required for claims?

  • For cashless claims: pre-authorisation form, employee ID, and insurer e-card.
  • For reimbursement: discharge summary, bills, prescriptions, diagnostic reports, and bank details.

Q10: How long do claims take to be settled?

  • Cashless: within a few hours for pre-approval.
  • Reimbursement: usually 15–30 days after documents are submitted.

Q11: What are common exclusions in group health insurance?
 Cosmetic surgery, infertility treatments, experimental therapies, non-medical expenses (like gloves, toiletries), and sometimes specific temporary exclusions like cataracts unless waived.

Q12: Can employees continue cover after leaving the company?
 Not automatically. However, under IRDAI rules, employees can migrate to individual policies with the same insurer within 30 days of exit.

Q13: What is a corporate buffer?
 It’s an additional pool of funds that the employer sets aside for critical or high-cost claims, beyond the regular sum insured.

Q14: How does group health insurance compare with individual policies?

  • Group plans are cheaper, cover PEDs and maternity from day one, and require no medical checks.
  • Individual plans are portable, customisable, and continue even if you change jobs.

Q15: Are wellness benefits included?
 Yes. Many modern insurers offer teleconsultations, free health checkups, mental health counselling, and fitness app tie-ups as part of the policy.

Takeaway:
 These FAQs address the most common concerns from both HR and employees. Employers should actively communicate these details to staff to avoid confusion during claims or at exit.

Conclusion & Next Steps

Healthcare costs in India are rising faster than inflation, and for most employees, their company’s group health insurance is the only shield against unexpected hospital bills. Unlike retail health plans, group cover brings unique advantages: immediate coverage for pre-existing diseases, maternity benefits from day one, and access to modern treatments — all at a lower cost because risk is shared across the workforce.

For employers, it’s more than just a policy. It’s a way to:

  • Attract and retain top talent.
  • Protect employees and their families during critical times.
  • Build a reputation as a caring, employee-first organisation.
  • Control costs by using buffers, wellness benefits, and smart policy design.

For employees, it’s peace of mind. Knowing that medical emergencies won’t wipe out savings makes them more secure, engaged, and loyal.

What HRs and Business Owners Should Do Next

  1. Assess workforce needs: Age, dependents, location, and risk profile.
  2. Compare policies carefully: Look beyond premiums — check room rent limits, PED waivers, maternity caps, and network hospitals.
  3. Negotiate riders: Add benefits like wellness, corporate buffers, and mental health cover.
  4. Communicate benefits: Ensure employees know how to use their cover and what’s excluded.
  5. Plan for renewal: Track usage and claims to refine the plan year after year.

Final Word

Group health insurance isn’t just a financial product. Done right, it becomes part of your company culture — a signal that you care about people, not just profits. At a cost lower than an annual gym membership per employee, it’s one of the smartest and most impactful investments an employer can make.

An investment in health.  A statement of care.

Group health insurance can do more than protect your team — it can shape your culture and show what your company stands for.

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