Financial Benefits of Group Mediclaim Policies for Employers

There has been a long-term debate in the market regarding the right way of motivating employees, which would result in an improved retention rate. This is especially true today, when more regular employees are turning to the gig economy and choosing to either work remotely or look for a hybrid setting. This makes it important for employers to understand what their employees need and function accordingly. An important answer that has emerged is providing a group mediclaim insurance policy for employees' benefits package.

Group Health Insurance is the Key to Retaining the Right Talent

Organisations must keep in mind that not looking for fresh talent can also make them more stagnant, resistant to change, and disallow a fresher perspective. Considering this in mind, organisations should not face challenges in retaining the right talent.

Taking a group insurance policy creates a sense of security. Employees also get benefits, as it covers them from day one. We will learn all the benefits as we read more. The sense of being valued helps employees focus on their work and increase productivity.

Benefits of Group Mediclaim Policy

Mediclaim policies are offered by multiple companies/ agencies. The features and specifications depend on the policy taken after screening multiple options, cashless coverage, and hospital networks. They also may cover ambulance charges, maternity coverage, day care services, domiciliary treatments, pre and post-hospitalisation, etc.

Niva Bupa also allows organisations to customise their mediclaim plans and offers group mediclaim insurance policy for employees benefits. You can read more here. We also provide additional benefits like up to 20% discount on pharmacy, up to 40% off on diagnostics/ lab tests, etc. One can learn more by giving a call to us at our 24*7 customer service.

Let's take a deeper dive and understand what are the benefits of group mediclaim policy and how they create a positive effect on employees.

Creating Goodwill

An organisation needs to maintain healthy goodwill in their respective industry. Reputation in the market helps create brand advocacy, find good customers, and encourage employee retention. Insurance, being a part of a well-being programme, enables employees to focus on the work, resulting in better output.

Tax Incentives

The government has made this a mandate for organisations to provide insurance for their employees, and as per the tax regulatory authority, return claims can be made against such investments.

Settlement Process

We all hear stories about the problems individuals face while claiming insurance (individual medical insurance). For group insurance, the settlement is handled by a separate department, which ensures the settlement happens faster, smoother, and more promptly.

Pocket Friendly

The group mediclaim policy benefits the company by not only saving time but also helping to save money. It decreases the scale of insurers' liability, resulting in lower premiums.

Zero to No Waiting period

Unlike regular health insurance, there is a holding period before you can claim a settlement. In a group medical coverage, the claims can be made on the first day, even if an employee has pre-existing conditions/ diseases.

Family Coverage

The group insurance policy is the best way of covering your family in one policy. Hassling between policies can be troublesome, but this keeps the employee motivated. Our policy also provides coverage (50% partial expenses) for parents of up to 100 years of age.

Conclusion

Group medical policy may be the best way to provide significant benefits to employees, as it enhances their well-being and satisfaction levels. Tax benefits and cost-effectiveness are additional benefits to the organisations. It is also the best motivator for your employer, building a stronger foundation and goodwill and attracting talent.

FAQs

1. What are group health insurance tax implications?

   As per the Income tax department, the premiums are exempted from the tax slabs under section 80D of the Income Tax Act. Any professional who is filling tax returns with old tax regimes can benefit for the same.

    

2. How does the premium get settled for the group mediclaim policy?

   Usually, the premium is paid by the employer, as a welfare for its employees. By the mandate made by the Indian government, organisations are allowed to use their CSR budgets to utilise against the group premiums.

    

3. Is group medical insurance included in CTC?

   Yes, medical insurance is an additional benefit provided by the employer to the employee.

    

4.  What is the sum covered in group health insurance?

   The sum coverage may vary and is dependent on the policy.