A salary is a combination of basic pay along with various allowances like travel, medical, house rent, leave, etc. In India, healthcare benefits are considered as an essential part of the employee benefits. As per a benefits survey conducted by Tower Watson, 46% of employers in Asia believe that their employees give the greatest importance to the health benefit in their package. So, we can say health benefits are quite a good motivation for the employees.
Health Benefits in India
In India, medical reimbursements and employee mediclaim insurance are two of the most popular health benefits provided by the employers.
In the case of medical reimbursements, the employer reimburses the medical expenses of the employee and his/her dependents. This is generally limited to the amount defined by the Tax Laws. Whereas group mediclaim insurance is basically a group health insurance cover purchased by the company that includes all the medical expenses of its employees and his family.
Many firms offer medical reimbursement facilities to their employees and reimburse the medical bills paid by the employees up to a certain limit.
But, in the case of medical reimbursements, an employer does not usually provide any coverage to employees. So, it does not provide any great benefit to the employees.
Even in case an employer provides reimbursement, there are a lot of administrative costs involved in collecting the bills from the employees as well as to check the authenticity of the bills before reimbursing the amount of the bill. Even, the employee needs to pay the bill initially from their own pocket and then submit it for settlement. In the case of emergency, it can be an enormous financial burden on the employee in case he does not have sufficient sum to pay the bills.
Also, it is a financial burden for you as well, as you do not have any idea about the total bills that are going to be submitted to you for reimbursement.
Group Mediclaim Insurance
This insurance provides coverage for employees in a very cost-effective way and offers following benefits to the organisation and its staff:
- Tax Benefits: Any amount paid by you in respect of premium of a group mediclaim policy of any employee, is eligible for tax deduction as an expense. So, you can save tax as well, by buying group insurance for all your employees.
- Wider Coverage: With the mediclaim insurance, you can offer a huge amount of coverage to your employees by paying a fixed amount of premium. Also, in the case of this insurance, you can avail great discounts on premiums. The comprehensive group mediclaim insurance offered by employers provides coverage for parents, spouses, and children under the same policy.
Also, this mediclaim policy does not have a pre-existing disease clause and waiting period clause. So, they start providing coverage for all the pre-existing diseases as soon as you purchase the policy. The maternity benefits are also provided by group mediclaim policy.
Benefits of Group Mediclaim Insurance-
- Cashless Treatments: The group mediclaim insurance offered by the employer to the employee offers cashless treatments at all the network hospitals wherein the employee does not need to spend any money on treatments from his own pocket, the insurance company directly takes care of hospital bills.
- Greater Peace Of Mind: It offers greater peace of mind for the employees as there is no sudden financial liability even in the case of medical emergencies. All the medical bills are taken care of by the insurance company.
- Less Administrative Cost: Once you purchase a health insurance cover for the employee, you can share all the policy details with the employees. After that, your job is done, and the employee can directly contact the insurance company for settlement of claims.
- Additional Riders: The employees can add additional riders like critical illness, OPD, diagnostics, to their existing mediclaim policy by paying a little extra premium. This helps them in having a more comprehensive cover.
- Other Services: Some of the insurance companies offering group mediclaim insurance also offers additional services like regular health check-ups, onsite health screening, that are great incentives for the employees.
Additional Read: What are the features of Group health insurance?
Employees are the important assets of any business. So, you need to make sure that best health coverage is provided to them to retain them and keep them motivated. Such a plan should be chosen that provides sufficient coverage at affordable premiums as well as have an easy claim process for the employees.