Understanding Employee Health Insurance in India
Do you have a health policy provided by your employer? If so, what is the coverage amount? A recent study conducted by Prudent Insurance Broking reveals some intriguing insights into the health insurance landscape for employees in India. The findings indicate that a group health insurance policy with a typical coverage amount of ₹5 lakh, along with a maternity benefit of ₹50,000, is the most prevalent among Indian companies. Alarmingly, less than 40% of firms offer policies with a coverage amount lower than ₹4 lakh, while very few extend beyond ₹5 lakh.
Study Overview
Prudent Insurance Brokers included the data from approximately 10 lakh employees working across 3,100 companies in 14 different sectors for their study. Notably, around 57% of these companies also extend coverage to the parents of employees, either under the base policy or through optional benefit packages. Surinder Bhagat, Vice President of Prudent Insurance Broking, emphasized the shift towards inclusivity, stating that many companies are now extending coverage to disabled siblings and LGBT partners as well.
Maternity Benefits
The study further highlights that over 95% of companies in India provide maternity benefits for employees or their spouses. The typical limit for maternity coverage, whether for normal or C-section delivery, is set at ₹50,000. However, some sectors such as BFSI (Banking, Financial Services, and Insurance), e-commerce, edtech, retail, engineering, power, and renewable energy offer a higher average coverage amount of ₹70,000 for C-sections.
Family Coverage
Most companies define family coverage to include the employee, their spouse, and children. While this is common, some sectors like e-commerce, manufacturing, infrastructure, and facility management do not include parents in the base plan. Surprisingly, parents make up approximately 60% of the total health claims, underscoring the importance of including them in insurance policies.
Importance of Individual Health Policies
Significantly, many employees tend to rely solely on the health policies offered by their employer, which can be a misguided approach. Experts strongly recommend that employees should also secure their own individual health policies. Furthermore, it is wise to obtain separate health insurance coverage for aging parents, as changes in employer-led policies can leave employees vulnerable if they change jobs.
Conclusion
In summary, while employer-provided health insurance policies are beneficial, they may not always meet the personal and familial health care needs of employees. It is crucial to understand the coverage limitations and consider additional health policies to ensure comprehensive protection for oneself and one’s family.
Key Takeaways
| Aspect | Details |
|---|---|
| Common Coverage Amount | ₹5 lakh |
| Maternity Benefit | ₹50,000 |
| Percentage of Companies Covering Parents | 57% |
| Average C-Section Coverage in Specific Sectors | ₹70,000 |
| Recommendations | Secure additional individual and parent health policies |
