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Why is Group Health Insurance important for employers?

Posted on 31 May 2021

A Group Health Insurance policy is an insurance covering for a group of people instead of an individual. Companies and organizations commonly avail it to cover the healthcare expenses of their employees and their dependents.
It is a common practice for large companies to take a group insurance cover for their employees. However, growing focus towards employee-happiness has steered even mid-and-small sized organizations to consider this option.
Let’s look at the importance of such plans from the employers’ perspective:

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Positive work environment and better performance

The salary you offer is an undoubtedly the most important factor that draws job seekers. However, what is equally important for employees is how much you genuinely care for their wellbeing and overall development.
Offering the benefit of Group Health Insurance cover is a step in the right direction to maintain a positive work environment and ensure that employees are happy and content with their jobs. Employees value employers who care for them and willingly put more effort into their work, translating into better work performance.

Lower premium costs

Several organizations are mandated by law to maintain insurance covers for their employees. For instance, while kicking the economy back into gear after the COVID-induced nationwide lockdown, the central government urged all employers to provide health insurance covers for their employees.
In such cases, it is prudent to take a Group Health Insurance cover as the premium for such policies is significantly lower than individual health policies for employees. The primary reason for lower premiums is the spread of risk among the pool of employees.

Tax benefits

The government appreciates employers who avail group insurance covers for their employees in the form of tax benefits. Employers are allowed to claim the premium paid towards a group insurance policy as business expenses subject to the provisions applicable to them and thereby, benefit through reduced tax outflow.

Provide extra incentives to employees

Insurance companies allow Group Health Insurance policy buyers to add some extra benefits to their insurance cover. For instance, extended health benefits to children and spouse in the same policy can be added to the group insurance cover. Such facilities are positive ways of incentivizing your employees and taking care of them and their family in case of unforeseen health problems.

Consistent premiums

With general health insurance policies, the premium amount increases with the increase in the insured person's age. However, this is not the case with Group Health Insurance policies, and the premium amount does not change due to age. This feature helps employers forecast and plan their expenses better while ensuring their employees are protected.

Payment flexibility

With Group Health Insurance covers, you can enjoy the flexibility of monthly, quarterly, or annual payment. Therefore, you are not in any way restricted by this insurance category and can select an option that suits your working capital cycle.

Generates goodwill

No one can disagree that goodwill is key to business success. Customers and employees aspire to associate with companies that are ethical and caring in their approach. While Group Health Insurance covers may not achieve immediate tangible benefits for employers, it adds to their goodwill.

Lower attrition

Employee outflow is an inevitable part of every business. Employers have to dedicate significant time and resources while orienting new employees according to their policies. However, employees genuinely value employers who provide additional facilities, such as educational support, health insurance covers, flexible timings etc. They do not leave employers who offer them such services without well-founded reasons, thus reducing attrition rates in organizations.

To Conclude

Well, it is an additional cost, but if you compare the benefits and positivity a Group Health Insurance cover generates for you and your employees, it is a must-have instrument for your business. As one of India’s leading insurance companies, ICICI Lombard provides Group Health Insurance policy that offer a wide range of benefits and can be customized according to your requirements.

  • Group Health Insurance
  • Product Code: 4016
  • Product UIN: ICIHLGP21381V052021

This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Group Health Insurance, 4016,ICIHLGP21381V052021)