Corporate Health Insurance: Compare Plans & Features

4 min read | Updated on May 29, 2025, 12:59 IST

About Upstox

Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.

A businessman and his HR head are engaged in a conversation during a celebration of their company's recent expansion and the addition of a new team. Amid the excitement, the HR head suggests they should consider purchasing a good corporate insurance policy for the company. The boss, however, questions the need for such a policy, arguing, "Why even bother? Everyone has their term plans and personal insurance policies. Who cares about this?"

The HR head explains, “People do care. And it is not just about the existing workforce, it is about attracting new talent. It is about our corporate social responsibility”

Why Should Employers Provide Corporate Health Insurance?

Any and every organisation should have a corporate health insurance policy. Here is how having a good corporate health insurance benefits the employers:

Critical Deciding Factor For Employees

While it is not uncommon for organisations to treat corporate health insurance as just another expense in the long list of employee benefits, it is a crucial aspect in hiring and retaining talent. A good corporate health insurance policy provides several benefits to employees that they might not get with a traditional health insurance policy.

Include Dependents

Corporate health insurance is group health insurance; therefore, employees can enroll their dependents, like parents, spouses, and children, in their policy.

Instant Coverage Of Pre-Existing Medical Conditions

Under corporate health insurance, employees can enjoy coverage for pre-existing medical conditions, which is generally not the case with traditional health insurance. It adds an extra layer of security, especially for people with severe conditions not covered by their insurance.

No Non-Negotiable Waiting Periods

One of the major benefits of having a corporate insurance policy for any employee is that there are no non-negotiable waiting periods. So, as soon as you are hired, you are covered by the policy.

Cover A Broad Spectrum Of Conditions.

Unlike traditional health insurance, corporate health insurance includes a broad spectrum of conditions, including common illness, maternity treatment, and daycare.

Boost Productivity

It is a very simple concept that a healthy person is much more productive than an unhealthy person. In fact, as per a study, poor health can cause a 20-25% drop in productivity. It is called Health-Related Productivity Loss (HRPL). However, this issue can be resolved if employees access quality health care.

Tax Benefits

As per the income tax laws, organisations who invest in corporate health insurance policies can claim the premium paid as a deduction under section 37, saving significantly in the payable taxes.

Regulatory Compliance

Providing corporate health insurance is mandatory for organisations working in certain pre-defined sectors as per the Social Security Code 2020. For these organisations, offering policies that comply with the law is crucial.

Reluctantly, the boss responds, "Fine, this does make sense from a business point of view. But let's keep it economical and buy the cheapest one out there."

The HR head counters, "We can't simply choose the cheapest option. Different policies offer unique features, and we must evaluate and find one that aligns with our company's needs."

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Features Of A Corporate Health Insurance Policy

While it is important to provide corporate insurance, selecting the best policy for your employees is equally important. What makes a policy good is how comprehensive it is. To ensure that your policy is comprehensive, ensure it has the following features:

Ancillary Expenses

The policy should cover the cost of medical treatments and other ancillary expenses, such as ambulance costs. These ancillary expenses ensure that the patient gets the medical treatment they require without any delay or default and, therefore, are crucial, especially in emergencies.

Cashless Treatment

One of the major reasons people invest in insurance is that it is difficult to arrange a large amount of cash in case of emergencies. However, if the patient or their family still has to pay some money to get the treatment, having an insurance policy is not worth it, even if the amount is later reimbursed. Therefore, the policy should make the treatment cashless.

Pre And Post-Hospitalisation Coverage

Corporate health insurance provides coverage for both pre-hospitalisation and post-hospitalisation expenses. Pre-hospitalisation costs, such as diagnostic tests (e.g., blood tests, X-rays), and post-hospitalisation expenses, including medications and follow-up consultations, are reimbursed.

Preventive Care

As corporate health insurance promises coverage for pre-existing medical conditions, they have to ensure that there is preventive care to ensure the flare-ups are as small as possible. Preventive care generally includes vaccinations, check-ups, wellness programmes, etc.

After listening to the various features, the boss seems intrigued and more invested. He asks, "So, how do we compare the plans if all good policies have these features?"

How To Compare Different Corporate Health Insurance?

Before selecting a corporate health insurance policy, decision-makers should evaluate the options across a few essential parameters. Here’s a quick guide to help you choose wisely:

Consideration	Why is it Important	What Should You Look For	Pro Tip
Evaluate Your Coverage Needs	Every organisation has unique health-related risks depending on the nature of work, employee demographics, and compliance needs.	- Is insurance mandatory for your sector? - Does the policy cover high-risk or chronic conditions relevant to your workforce? - Are customisation options available to tailor coverage to your employee base?	Don’t pick a plan off the shelf; negotiate terms and add riders to suit your team better.
Check the List of Network Hospitals	The more widespread the insurer’s hospital network, the easier it is for employees to avail of cashless treatment across regions.	- Are the insurer’s hospitals well-distributed near your office locations? - Does the network include reputed multi-speciality hospitals? - Are cashless claim facilities hassle-free and easy to access?	A strong hospital network results in faster, smoother emergency care.
Assessment of Cost and Budget	While corporate insurance is often economical, cost control shouldn’t come at the expense of crucial benefits.	- Compare plans offering similar benefits across insurers - Watch for hidden costs: sub-limits, co-pay clauses, room rent caps - Ensure value for money and not just low premiums	Strike a balance between budget and benefits; cheap plans may cost more in the long run.

Summing Up

In conclusion, corporate health insurance is not just a benefit; it is an essential investment in the well-being of employees and the long-term success of an organisation. By offering comprehensive coverage, employers can enhance employee satisfaction, boost productivity, comply with regulatory requirements, and enjoy tax benefits.

Carefully comparing plans based on coverage, network hospitals, and cost ensures that businesses select a policy that aligns with their needs, fostering a healthier and more engaged workforce.

FAQs

Can you have add-ons to your corporate coverages?

Yes, corporate health policies allow add-ons like maternity, OPD, newborn cover, and corporate buffer for an extra premium.

Are there any qualifying criteria for purchasing corporate health insurance?

Yes, typically a company must have at least seven employees to be eligible for a group health policy.

Is it possible to buy the policy even if the number of employees is less than 7?

Yes, the policy can be issued as long as the total number of lives insured (including dependents) is seven or more.

Can dependents like parents or in-laws be covered under corporate insurance?

Many corporate policies allow coverage for dependents like spouses, children, and sometimes even parents or in-laws at extra cost.

About Author

Upstox Desk

Team of expert writers dedicated to providing insightful and comprehensive coverage on stock markets, economic trends, commodities, business developments, and personal finance. With a passion for delivering valuable information, the team strives to keep readers informed about the latest trends and developments in the financial world.