Companies offering health insurance plans for employees are considered as those which give importance to employee well-being. Moreover, it is a powerful way to attract skilled employees and build loyalty towards the company. By providing employee health insurance benefits, companies not only reduce the financial burden on their staff but also reflect a commitment to the well-being of their workplace.

Moreover, offering health care coverage contributes to a positive work culture and can result in job satisfaction and ultimately lead to long-term work productivity and team success. Although opting for employee health is important for any enterprise, buying it from a trusted brand like Tata AIG can be more beneficial due to their comprehensive coverage, flexibility, additional features and affordability.

Top 10 Reasons Why Companies Should Provide Employee Insurance Plans

By providing healthcare costs for the employees in the form of group health insurance, the employers not only help to minimise a financial burden on their staff but also benefit the employers. Assuring workers with an employee  insurance plan is essential for businesses because of several reasons, some of which are the following:

1. Firm Image: Covering health insurance benefits will showcase a commitment to the well-being of employees and reflect a positive company image.
2. Legal Requirements:  In many countries, offering health coverage to employees is mandatory for businesses with more than 10 staff. It ensures that the company operates within legal bounds. In India, IRDAI released a circular on 1st April 2020, stating medical insurance to be made mandatory for all employees.
3. Tax benefits: By providing a valid employee medical insurance policy, companies can request a tax deduction. The tax benefits depend on the premium contribution by the employer and employee. Both parties can avail of tax benefits to the extent of their contribution.
4. Improved work productivity and engagement: Happy and healthy employees are significantly more focused and productive. Hence, ensuring them with their healthcare needs will generally lead to a promising work environment.
5. Talent attraction:  Investing in employee health insurance plans can be beneficial for hiring top talents. When the company offers such benefits, it also encourages the existing employees to continue with the employer, thereby strengthening the retention rate.
6. Competitive advantages: In this competitive market, companies that provide health assurance to their employees are seen as more appealing to new hires.
7. Employee satisfaction: Knowing that basic health-related expenses are covered in their employment policy and they do not have to pay premiums for it can boost employee satisfaction. A supportive workplace culture initiated by the employer can add a sense of trust and loyalty, especially to the staff members who are unable to afford such health insurance plans.
8. Preventive healthcare: New-age workplaces are more into employee wellness programs, such as online fitness and yoga sessions, workout classes, mental wellness programs, and many more. Some of these activities are already a part of employment insurance policies.
9. Relaxed claim settlement: Access to a health insurance plan for employees through the Internet can lead to a quick and hassle-free claim process.
10. Mobile friendly: Insurance companies are more digitally inclined these days. They have a responsive website, user-friendly mobile apps and more that make the entire insurance experience engaging and hassle-free. With just a few clicks on a few taps on the mobile phone you can easily access numerous facilities and services.

 Challenges in Offering Employee Health Plans

The benefits of employee health policy are numerous, as discussed above. However, there are a few challenges faced by employers when it comes to the implementation of such policies.

• Expense: Offering employee medical insurance can be an expensive proposition for many organisations. For start-ups or smaller companies, cost-related challenges can be significant. However, companies must look at the long-term benefits and the larger picture.
• Awareness: Not all employers are well aware of the latest trends and requirements of their employees. Due to a lack of awareness, employers may not consider offering group health insurance plans to their workforce.
• Flexibility: Group health insurance plans are considered as non-flexible or rigid plans by the employers. It is assumed that these plans only have a single blanket cover which may not be customised according to the needs of their company or employees. However, today’s group health plans offer customisation at the end of the employer as well as the employee. If the employer opts for a plan that employees can customise, employees can even enhance their coverage at an additional premium.

 Summarising

Employee insurance coverage acts as a safety net and helps reduce the financial impacts of sudden or unexpected health issues on employees, in turn, contributes to preventive care and timely treatments. Typically, these kinds of health insurance cover a range of medical expenses, but some of the plans may vary depending upon insurers and employers’ choices.