Today, India is on the verge of becoming a global workplace due to its skilled talent pool. As remote working has opened up several market possibilities over the years, accessing these talents has become more effective. Many organizations in the West realized the potential and tapped into India’s remote work landscape by hiring employees through EOR services. After testing the waters, a few organizations established their entities in India.
Whether you are a founder or a C-level executive at any organization, if you want to expand your remote teams in India through EOR, you must consider a few factors. One of the primary factors is health insurance for your employees. You must have several questions. How does health insurance work in India? What are the norms? What is the premium cost? And many more.
This blog aims to resolve your concerns and questions about health insurance in India. We will also explore what are better options for health insurance coverage for your remote team in India. Lastly, we explain how Employer of Record (EOR) services play a pivotal role in establishing and securing your remote teams through insurance.
How does India perceive health insurance?
Health insurance is essential; however, this might differ for Indians due to several reasons stemming from the generations. The heavy reliance on conducting home remedies over going to the hospital is more common in the masses. It is common for people to buy medicine without seeking medical advice for minor colds, coughs, and fever symptoms.
In the event of an emergency where hospitalization is necessary, a health or admission card isn’t mandatory in India. Health insurance distribution in India is subject to decentralization and variation, so it is still optional to have health insurance in India.
According to a survey by the Indian Staffing Federation, 20-25% of candidates in India prioritize a higher salary over other employment benefits. However, the employees who prefer jobs with health insurance seek additional benefits, such as cashless hospitalization, reimbursement of medical expenses, and waiver of premium for critical illness.
How does health insurance in the Indian business landscape operate?
Insurance is a standard offering from Indian employers to mitigate potential workplace incidents or medical emergencies, thereby reducing their liability. Workplace health insurance in India can vary depending on the employer’s policies, company size, and the employees’ specific needs. The following factors can help organizations choose insurance plans that sit perfectly with them.
Group health insurance: Several employers in India provide group health insurance coverage to their employees. Group health insurance policies cover a defined group of employees of a specific organization. These policies offer various advantages, such as covering hospitalization expenses, pre and post-hospitalization costs, outpatient treatments, and occasionally maternity benefits. Group health insurance is comparatively better than Individual health insurance, which is much more expensive. Also, if you are opting for individual insurance, the insurers have the right to deny coverage or exclude certain conditions based on their underwriting criteria. If you have a pre-existing condition or a history of health issues, there may be limitations or exclusions in your individual policy. Thus, group health insurance is much more cost-efficient for similar benefits.
·Employer/Employee Contribution: It is common for employers to cover part or all of their employees’ health insurance premiums. The level of employer contribution can vary depending on the organization’s policies. Some employers may cover the premium amount, while others may require employees to contribute a portion.
Comprehensive Coverage: Group health insurance plans in the workplace usually provide broad coverage, including hospitalization expenses, surgeries, diagnostic tests, medications, and specialist consultations. The coverage may also extend to pre-existing conditions after a waiting period, although specific terms and conditions can vary between insurance providers and policies.
