Companies in India provide their workers a wide variety of perks. These perks are paid for by the company and given to all workers automatically. Employee health insurance is a valuable perk that many companies offer. Group insurance is a benefit typically provided by employers to their staff.
Health, life, personal accident, group employee deposit linked, group travel, and workers’ comp are just some of the various insurance policies that may be provided to workers as part of an employer’s benefits package. This article provides a summary of the many types of insurance offered to employees.
Insuring Different Employee Benefits
Associational Medical Coverage
Workers may rest easy knowing that their hospital bills will be covered by their employer’s health insurance plan. To put it simply, it is the most common form of insurance provided to workers. In a group health insurance plan, the employer typically pays all or most of the premium while the employees chip in for their share. Employee health insurance policies typically extend coverage to the employee’s spouse, dependent children, and parents. Group health insurance provides the following primary care services to its insured members:
Insurance in the Case of a Serious Illness
The cost of an ambulance ride will be paid.
There is no lag time for any disease.
There is no need for a medical exam.
Treatment for mental health issues may be covered.
All or part of the room rent is paid for, no matter what
In-network hospitals that do not need out-of-pocket payments for care
Protection for spouses and dependent children
Insurance throughout pregnancy with no mandatory waiting time of 9 months. Coverage beginning at birth and continuing for up to 90 days
Benefits at the Outpatient Department (OPD) include doctor visits, medications, diagnostics, wellness exams, and more.
Medical costs associated with a hospital stay of at least 24 hours for the treatment of a disease or injury. There is protection for costs incurred after a patient is discharged from the hospital.
Group health insurance rates are less than those of single or family coverage. The reason for this is that the danger is shared by a large group of individuals. With a higher monthly cost, employees can select supplemental health coverage options in addition to the standard health insurance coverage.
Group health insurance premiums paid by employers are deductible under Section 80D of the Income Tax Act.
The finest group health plans for workers offer complete protection for an adequate sum covered.
Personal Injury Protection for Employees
In addition to health insurance, another type of employee benefits insurance that is crucial is personal accident insurance. Personal accident insurance for a group is similar to coverage for an individual. The only real difference is that, with group personal accident insurance, all of the employees on the master policy are automatically covered in the event of an accident.
Staff Medical & Dental Insurance Plans
The primary goals of group personal accident insurance are to pay for employees’ medical care after an accident and to compensate them if they are temporarily or permanently disabled as a result of an accident.
Personal accident insurance provides the following coverage and advantages to employees:
- Protection against the cost of emergency medical care following an accident
- Care for crash-related trauma, including burns and broken bones
- The insured person’s ambulance transportation costs to the hospital are taken care of.
- Compensation paid weekly in the event of temporary disability resulting from an accident
- The coverage will pay up to 60% of the total covered in the event of accidental partial disability.
- If an accident leaves the insured permanently incapacitated, the whole amount of the policy will be paid out.
- In the event of the insured’s accidental death, the nominee will get the full amount of coverage.
- The policy may include monetary or other assistance for furthering an individual’s education. In the event of the covered worker’s death or permanent incapacity, the insurance company will cover the cost of their children’s higher education.
- Transportation of the insured’s mortal remains from the hospital to the home or cremation ground is often covered by the plan.
Insurance Premiums Paid From Employee Deposits
A subset of employee benefits insurance is known as Employee Deposit Linked Insurance. The scheme is connected to the EPF (Employee Provident Fund). The EDLI system includes all businesses that are required to comply with the Employee Provident Fund and Miscellaneous Provisions Act, 1952.
Only the employer is responsible for making a payment into EDLI. An employee’s EDLI programme is required to be funded by a 0.5 percent employer contribution to basic pay and DA. To qualify for participation in the EDLI programme, no minimum amount of service time is required. However, if an employee leaves an EPF-registered firm, they will no longer be eligible to participate in EDLI.
Benefits Insurance Coverage That Is Linked to Employee Deposits
In the event of an employee’s death, EDLI provides financial support to his or her dependents. In the event of an employee’s death, the beneficiary will receive 35 times the employee’s average monthly wage in the year before to his or her death. There is a cap of seven million rupees on the total amount that can be claimed. Under this plan, you’ll also receive a bonus of Rs. 1.75 million.
If the employee has no designated beneficiary or surviving family members, their legal heirs can make a claim. When a nominee is not present, the claim amount is paid to the employee’s remaining family members. Older sons or daughters who are already married are not entitled to file claims, however. In cases when the nominee, surviving family member, or legal heir is a minor, their legal guardian can make the claim in their place.
Income Protection for Workers
Employer-provided life insurance, or ELI, is a type of protection offered to workers by their employers. Life insurance is provided to employees through a master contract acquired by the company. In this metaphor, the business owner plays the role of the policyholder, while the workers take on the role of the insured.
Benefits Insurance, including Life Insurance, for Employees
Having a life insurance policy through your employer might help you in many ways. There are a few that have been discussed already:
After an employee’s passing, the beneficiary receives the insurance payout.
After an employee has been with the company for a predetermined amount of time, they are eligible to receive a gratuity payment. Gifts to long-term employees are paid for out of the life insurance premiums employees pay.
Retirement benefits are paid out of the money saved from the employee life insurance policy.
Conclusion
The attrition rate can be lowered and employee retention improved by offering them health insurance as part of their benefits package. These kinds of perks are becoming increasingly popular amongst employers. Vital has a variety of plans from which to pick, so if you’re thinking about offering employee benefits insurance, either now or in the future, you should give them a look.
