Group Health Insurance : As part of the National Directives of Ministry of Home Affairs, providing medical insurance coverage to employees and workers is now mandatory.
Such medical insurance shall be comprehensive to cover all types of ailments – not specifically COVID.
This comprehensive medical insurance has to be availed by all types of organizations engaged in any type of activity – Manufacturing, Trading or Services.
Group Health Insurance is required to be taken for all types of workforce including :
• Permanent employees
• Contracted workers
• Sub-contracted workers
Table of Contents
What is Group Health Insurance?
Group health insurance provides medical coverage for a group of people, be it a business, co-operative society or a religious organisation. GHI can be purchased by companies or organizations to provide medical coverage to their employees as an employee perk, where the member’s health insurance premium is paid by the employer.
Startups, SMEs and corporates offer group health mediclaim to their employees as a part of their employee benefits, which has numerours advantages over personal health insurance.
Why Is Group Health Insurance Mandatory For Employees?
Let’s get to the crux of it, Group Health Insurance or Corporate Health Insurance was made mandatory last year by the Indian authorities. After the COVID-19 pandemic uprooted our daily lives, the government felt it was necessary to come up with such a mandate. As per a circular, issued on April 1st, 2020 by the Insurance Regulatory and Development Authority of India (IRDAI) –
- Providing medical insurance for workers was made mandatory by the employer.
- All industrial and commercial establishments were asked to put in place and follow standard operating procedures (SOP) keeping the pandemic in mind.
- In the same circular, health insurance companies were directed to offer comprehensive insurance policies to either individuals or groups
- The insurers were advised to devise health insurance products that are simple to understand and affordable in cost.
- This Medical Insurance Policy offered by insurers should not only be provided for the present situation but will be continued for a lifetime.
Employee State Insurance Vs Group Health Insurance
The Employee State Insurance Act, 1948 covers employees earning a monthly wage of Rs. 21,000 or less, both the employer and employee have to contribute to the Employee State Insurance Corporation (ESIC).
Employees who are not covered in ESI, are to be covered in group mediclaim policy by the employer.
To design a comprehensive and affordable health cover for your team, contact our subject-matter experts @ Healthysure.