Company-provided group health, personal accident, and term insurance is typical. The company covers all qualified employees from day one. Offer letters often include this insurance. Though beneficial, employers must do more.
They must consider ways to reduce employee hazards. Let me reassure company heads that this does not have to cost the firm but may save employees a lot of money.
One-size-fits-all doesn’t always work.
Companies cannot take a one-size-fits-all strategy to employee hazards and insurance. Some workers have dependent parents. Some spouses are well-insured. Some are single, married, or have children. Some drive, others take public transit. To meet these various demands, provide a variety of extra coverage that employees choose and pay for themselves, maybe through payroll.
Since it can buy in bulk and use its broker or insurer ties, a firm can acquire employee insurance cheaply. Individuals can seldom acquire company insurance.
Companies can choose three optional insurance types: (a) parent and extended family group health insurance, (b) core group health insurance upgrades (c) auto, personal accident, and OPD insurance.
Parental health insurance is the most popular. Chronic ailments make individual insurance difficult for seniors. Senior health insurance premium loading and decline rates are significant. Seniors struggle to schedule medical testing. Pre-existing conditions increase insurance claim rejection rates. Company-purchased parent group insurance solves these difficulties. Pre-existing conditions are covered without medical examinations.
Parental insurance
Several employers want to provide voluntary parental insurance. Workers usually pay for their parents’ insurance, with some company assistance. Good parental cover costs Rs 25,000 per life every year. This is more useful and cost-effective than individual insurance.
Parental insurance requires competent agents. Parental insurance is offered by few insurers because to high claims. These coverings are bought by employees with sick parents. Anti-selection ensues. High enrollment prevents anti-selection. The mediator will explain value to personnel.
Enhancing employer-provided group health insurance is the second sort of optional cover. The sum assured or family coverage may be increased. This idea is underexplored. Most organizations set employee benefits without customization. Let basic cover modifications and charge workers.
If a firm offers baseline insurance of Rs 3 lakh, employees can pay extra to increase coverage to Rs 5 lakh. If only one employee is covered, they might pay to add a spouse and children.
Why do individual and group health insurance have different claim experiences.
Health, automobile, and home.
Lastly, most workers need more than health insurance. They may not obtain the greatest insurance or value when they buy it alone. A wise employer can solve this by giving workers customized insurance on favorable terms.
Car insurance. The firm might pre-negotiate the greatest prices and provide employees with a gateway to renew automobile insurance at better rates than they would receive individually.
Group retail items for employees are also possible. Personal accident, hospital cash, and OPD insurance examples. Personal accident insurance is cheaper for the firm than for the employee. Such sites can also sell cyber liability insurance.
Voluntary benefits need not be insurance-based. Good companies encourage yearly health checks. Here, pricing matters too. The business may negotiate a full diagnostic panel that costs Rs 5,000 in a big hospital for Rs 1,500. Such a pricing differential will boost employee testing.
Comprehensively assess employee hazards and insurance needs. Employee health and term insurance are necessary. Employees should be able to customize their base insurance and add dependents. Good organizations use their product expertise and bargaining skills to help employees acquire alternative insurance and medical services. This will benefit employees and cost the corporation nothing. and increase employee loyalty and retention.
Network Hype Team