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Is Corporates Health Insurance Compulsory in India?
Corporate Health Insurance is an important feature considered during employment. Most companies do offer corporate health insurance, however, what they cover and how much insurance they offer depends on the size and capacity of the company. Previously, health insurance was not compulsory for companies, however, post the pandemic, it becomes mandatory. According to guidelines issued by the Indian government as part of the new consolidated guidelines by the ministry of home affairs, all employers are supposed to offer medical insurance to their staff members.
IRDAI Has Made It Mandatory
Before 2020, there was no established regulation requiring such a health cover. However, following the pandemic, the authorities have implemented additional rules in this area. Following the shutdown, businesses were required to reopen according to a Standard Operating Procedure, which included providing workers with insurance.
The IRDAI sent this circular to health insurance providers so they may carry with Ministry of Home Affairs orders.
1. The directions after lockdown Medical insurance would be required, according to a circular from the Insurance Regulatory and Development Authority of India (IRDAI) dated April 1, 2020.
2. IRDAI directed the insurance service providers, too: The non-life insurers were urged by the IRDAI to develop comprehensive, reasonably priced, and plainly defined policies.
Why Is Employers Required Offering Health Insurance?
The pandemic was a difficult time, and the government realised that people suffered during the pandemic due to the lack of health insurance. This led to the loss of life and loss of lifelong savings. So, to help the citizens of the country, providing health insurance to employees became a mandate.
Advantages of Group Medical Cover for Employees
Group medical cover has a lot of benefits for an employee and is also much more affordable and beneficial than individual cover. Employee advantages of group medical cover are:
1) Corporate health insurance has a wider application than individual health insurance in terms of the insurance coverage it provides for numerous illnesses. The list of ailments that group health insurance policies typically cover is limitless.
2) For the nation’s continuously expanding female workforce, the maternity benefits offered under corporate health insurance plans are of the utmost importance. It helps female employees to follow their career goals without worrying about money if they wish to start a family.
3) The minimum waiting period before insurance coverage starts to apply for a condition that the policyholder already has at the time of enrolment is specified by standard individual health insurance plans.
Is It Right Time To Buy Group Health Insurance?
As the world still battles the ill effects of the pandemic. Especially with the government regulations promoting and supporting health insurance, now is a good time to buy Group Health Insurance.
Should Employers Provide Group Health Insurance?
Yes, employers should provide health insurance as a part of the benefits provided by the company because many people depend on the company to take care of the employee in a return for the service provided by the employee.
Group Health Insurance FAQs
Q1. Since when is Medical Insurance made mandatory in India?
In India, medical insurance for employees is now required with the end of the nationwide lockdown in 2020.
Q2. Is Medical Insurance Mandatory For Employees In India?
Yes, medical insurance has been made mandatory by the government. It is mandatory that the company you work for provides medical insurance.
Q3. I am unemployed. Can I buy health insurance coverage for myself?
You can buy personal health insurance for yourself, yes.
Q4. What is the minimum number of employees required for group health insurance?
A company with 15 employees is allowed to offer group insurance to its workers.
Q5. When did Group Health Insurance for Employees become a legal requirement in India?
Employees in India’s organised industry have access to health insurance. The Employee State Insurance Act of 1948 permits access to it. ESI is available to workers making at least Rs. 21,000 per month.
Buying health insurance is a legal and mandatory requirement in India and hence each employer needs to ensure that they offer one to their employees. Having said that, it is also important that employers select the right insurance to make the most of the insurance, while also being easy on their pocket. Especially after the pandemic, comprehensive health insurance is extremely important and each employee looks forward to being offered one upon being employed.
If you are looking to find the right insurance for your employee, let us help you choose from the plethora of options present in the market. Get in touch with us today.