How Group health insurance plans can help small-and-medium-scale businesses in India

Group health insurance plans have gained popularity amongst small-and-medium-scale (SME) businesses in India; owing to the fact the larger companies can easily attract and retain their valuable talent by offering such incentives. Hence today most SMEs are under great pressure to offer good remuneration and benefits including insurance to retain their employees as much as possible. Also as SMEs generally hire fresh talent on whom they spend a substantial amount of their time and resources for training; they prefer not losing this talent to the bigger fish.

Besides this with costs skyrocketing; health insurance has become a necessity; and a must for all individuals. It is very risky for employees to not have a proper insurance; due to which most of their savings being could completely be wiped out or they could even get into the debt with just one slightly long illness. By getting group health insurance plans for their employees entrepreneurs offer not only benefits to their employees; but also at the same time encourage them to get a financial cover and balance their risk; which they otherwise might have taken lightly.

What it is?

Before understanding how it benefits SMEs, it is a good idea to understand what it is. Hence as the name suggests group health insurance; is simply insurance taken for a group of people which could be a family, or a group working in an organization and so on. It generally covers a group of 50-100 people and is beneficial to the insurance company (high number of applicants in one group) and also the obvious which is the person insured. The policy in India works under specific terms & conditions which are applicable to the entire group insured. Some time the policy also covers pre existing diseases; from the first day; while others provide the cover after a certain time period has passed.

Here is how Group Insurance can benefit SMEs

Improved healthcare equals to more energetic staff

Generally if your employees know that they have health coverage; then they are more confident that they can take care of their medical bills in case of any ailment. Hence they don’t shy away from getting minor check-ups and tests done on time as they know they are prepared to handle the bills if at all they have any sort of ailment. Also this encourages them to take timely preventive healthcare measures hence making them avoid any future serious ailments down the road. Good health of employees will eventually make them more energetic; more likely to take on enough work and also more easily meet deadlines.

Lesser worries improves performance of staff

Having health insurance means the employee is well protected against any ailments and does not have to worry about how to pay the entire bill in case of any serious illness. This makes the cost of services manageable and also keeps them away from unnecessary and burdensome debts arising from major illnesses or injuries. It has often been seen that employees which were star performers earlier once burdened with worries and financial debt can become completely opposite towards their work; being constantly disturbed. Hence getting a timely health insurance can help you from not only losing the valuable talent of an excellent employee; but also maintaining performance of the staff.

Tax benefits for your business

If you are incurring any expense on behalf of getting health insurance for the employees of your company; then generally speaking companies get tax breaks for offering such insurance policies. Hence this way not only do you benefit by making your employees financially more secure in case of health issues; but also benefit through the tax breaks.

Helps the recruitment and retention process

SMEs that offer group medical coverage generally show lowered hiring costs as they manage to recruit and retain talented employees faster. It also reduces absenteeism as the employees are more likely to get health checkups done and hence also decreases the risks associated with poor health in the long run. Healthy employees are also have lesser chances of injuring themselves and more likely to do their jobs well.

Better environment equals to more motivation

Healthier employees mean an enhanced office environment and improved morale. Group insurance offered to employees makes them more confident that you are concerned about their welfare; hence making them happier and satisfied with their jobs. Sometimes employees may be happier with slightly lower pay if it comes with insurance; as on their own they would have to put in much more for getting a personal health insurance policy.

Here are few other direct benefits your employees can get with Group Insurance which they would not have gotten with a personal policy-

  1. No need to go for any medical checkups either for the employee or for their family.
  2. Covered by the policy from day one.
  3. This policy also offers maternity benefits for the employee or their spouse; which cannot be availed in a personal insurance.
  4. They are less costly than individual health plans.
  5. Being insured from day one means there is no pre existing diseases clause; so even if the employee has recently suffered an ailment they still would be covered and not need to wait to be covered for this ailment; unlike other health insurance policies.

Finally group health insurance cover is a great opportunity for SMEs to help their staff and keep them happy; even if it is used as an additional policy apart from their individual policy to take care of skyrocketing health care cost nowadays.

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