Employee engagement and security is important in today’s workplace scenario. An employee can benefit from his professional service under various categories.

Things which matter to an employee

  • Health Security
  • Family’s Financial Safety
  • Retirement safety
  • Job Safety

How can an employer achieve this?

While job security is directly dependent on the success of business you can ensure other safety nets with the help of insurance:

  1. Group Health Insurance: This type of insurance covers the personal health risk of an employee. All employees are exposed to some degree of risk, concerning their long working hours, work pressure, or depending upon the exact nature of their job. The group health insurance benefits can be passed onto the family members of the employees as well.
  2. Group Term Life Insurance: It is an insurance cover to provide a death benefit to an employee’s family. If the employee meets an untimely demise, his/her dependent family members will not go financially bankrupt and can maintain their financial and social status.
  3. Group Personal Accident Insurance: GPA cover for partial disability or total disability medical expenses of an employee emanating from an accident. It also includes death benefit due to accidental death. It is applicable 24×7 across the world.
  4. Worker Compensation Insurance: This insurance covers employer’s legal liability to workers engaged in the premise or his/her project. The legal liability of employer is defined under the Workmen Compensation Act. Employers have the option to offer better compensation under the insurance policy. This can be a differentiating factor for attracting skilled contract workers.
  5. Group Pension Cover: It is a retirement cover for the employees. An employer can make a contribution to the retirement funds of an employee. The savings can be redeemed by an individual post retirement. The benefit accrues to an employee only post-retirement and in the form of pension.

Case on 360o Umbrella for Employees

Ramesh is an employee of an SME called LoadDelivery. Ramesh is a field worker responsible for transporting goods from one station to another. He is covered under the group term insurance provided by his employer. Ramesh meets with an accident and passes away. Ramesh’s family is entitled to the sum assured in case of death of an employee as per the group term cover of LoadDelivery.

Suppose Ramesh survives the accident and is covered under Group personal accident insurance cover provided by LoadDelivery. Ramesh suffers a critical leg injury and has to undergo surgery. His total hospitalization expense will be covered by the insurance, and both the firm and Ramesh can breathe easy as they only bear minor expenses.

If Ramesh’s legs have to be amputated during the surgery, he is entitled to receive the total medical expense incurred due to disability, and the eligible compensation amount for the disability.

Benefit of Term Cover to Ramesh’s Family

Ramesh had been the sole provider for his wife and two kids, one of which had been in school. If not for the term cover money it’d be difficult for his widowed wife Premlata to take care of the kids and have a financial safety net available while she works out her life.

Premlata had felt relief when Ramesh left his previous employer and joined LoadDelivery, which offered health and term insurance to all the employees.

Ramesh and Premlata had tried to maintain an emergency fund to take care of such emergencies, as they could not afford a health and term policy then. However, with their level of savings it was difficult to build in time.

Many colleagues of Ramesh and their families also reflected the same views of stress.

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