Benefits of Group Health Insurance for the organisation can be summarized as follows:
- Motivated Employees: Employees feel obliged which inculcates the belongingness and loyalty factor amongst them. The employees are relaxed and feel less stressed as far as their spouse, children, and dependent parents’ medical needs are concerned. This gives rise to a tension-free, happy and motivated workforce.
- Reduced Attrition Rate: Group health policy forms one of the hygiene factors for many industries and an organisation without these benefits may even have difficulty in acquiring and retaining good talent. This also plays a crucial role in employee retention.
- Inexpensive Employee Benefit: The group health insurance premium is very much lower than individual health insurance. Also, the premium payable against group policies is tax deductible for the organisation.
- Promotes a Healthy Workforce: It adds to the productivity of an organisation by avoiding frequent absenteeism by keeping the employees’ healthcare expenses covered. Even maternity expenses are covered in group health insurance from day 1.
- Promotes Employer Brand: Better employers are recognised for their employer-centric policies. It adds a special quotient in the job satisfaction amongst the employees which is a key element for the growth of any organisation.
Case for Group Health Insurance Benefits
Mordims Enterprises has bought a group health insurance policy for its employees. Under this the employees are entitled to avail the Medical Policy offering sum insured worth Rs. 100,000. In a typical situation, the premium comes to around Rs. 12,000 per annum, which is shared by both the parties’ i.e. the employer and employee in the ratio of 60:40. In this case, the employer and the employee share come to Rs. 7200 and Rs. 4800 p.a. respectively.
Aseem Rawat, currently working as an executive in the sales vertical of Mordims Enterprises quoted “It really became quite difficult for me to manage when I got to know that my mother is suffering from a serious illness. At that time I did not have sufficient balance in my account to cope up with the cost of meeting her sudden medical needs. It could have cost me a fortune, if the group insurance policy had not been there. I am really thankful and obliged to my organisation which had the insurance cover for all of its employees as soon as they joined the organisation”.
The payment of premium initially may sound as an expense but it is worth doing when the organisation creates satisfied employees who work with cent percent efficiency and utmost loyalty.
Additional Read: What are the advantages of a Group Health Insurance?