How Corporate Insurance Works In India

4 min read | Updated on May 28, 2025, 16:14 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.

Vikram, the founder of a growing tech startup, debated whether to provide corporate insurance to his employees. Initially, he assumed only large corporations offered such benefits. However, his HR manager, Neha, explained that many insurers in India offer group health policies tailored for small businesses. These plans cover employees and their families, often at lower premiums than individual policies. _ Vikram learned that offering corporate insurance could help his startup attract and retain top talent in the competitive IT sector. Additionally, the premiums were tax-deductible, reducing the financial burden. After consulting an insurance provider, the company selected a group plan that balanced affordability with comprehensive coverage. The decision boosted employee satisfaction, positioning the company as an employer of choice_.

What Is Corporate Insurance And How Does It Work?

Corporate insurance is a group policy that organisations offer as part of employee benefits. It aims to provide financial security and medical assistance to the employees and generally includes employee's dependents. However, unlike other insurance, employers purchase corporate insurance in bulk for their employees and employees' families.

As they are bought in bulk, insurance companies can appropriate their liability across a large group, enabling them to offer significant incentives such as discounts and specialised benefits. Here is how companies in India implement corporate insurance:

Assessing Employee Needs

The first step in implementing corporate insurance is assessing employee needs. This includes evaluating workforce demographics, medical needs, risk quota, and other relevant factors.

Partnering with Insurers

Once the employees' needs are defined, organisations seek an insurance provider with which to collaborate. It can be done by directly communicating with the insurance providers or brokers to customise plans based on budget and coverage requirements.

Policy Enrollment

After signing a contract with the insurance provider, the next thing to do is to get the employees onboarded into the insurance program. While the company has a singular contract with the insurance provider, each employee has their contract with the company, which they can customise with optional add-ons like family coverage or top-up plans.

Claims Management

In case of any event that activates their policy, the company assists its employees in filing for the claims and processing, ensuring employees can access benefits smoothly.

Annual Review & Upgrades

One major task in providing corporate insurance to employees is regularly reviewing and upgrading the policies. It is crucial to adjust coverage based on changing needs and regulatory updates.

What Is Included In Corporate Health Insurance?

In India, corporate insurance generally covers health, life, and accident insurance, along with perks like maternity benefits, wellness programs, mental health support, and fitness incentives.

Corporate Health Insurance

Corporate health insurance is one of the most famous kinds of corporate insurance. It is a financial safety net that helps cover medical expenses arising from illnesses, injuries, or other health-related issues. Depending on the policy, one can pay a regular premium for doctor visits, hospital stays, medications, preventive care, and surgeries. However, corporate insurance is a bit different from individual health insurance, as unlike the latter, the employer pays the premium for their employees and their immediate families.

Things Covered Under Corporate Health Insurance

Corporate health insurance offers employees and their families comprehensive medical coverage, ensuring financial security and access to quality healthcare, often surpassing the benefits of individual health plans.

Added Health Cover

Corporate health insurance covers employees' immediate families, including spouses, children, and sometimes parents. This benefit ensures the entire family's medical expenses are covered, offering peace of mind during emergencies or routine healthcare needs.

Pre-Existing Disease Cover

Unlike many individual health insurance plans with waiting periods, corporate health insurance typically covers pre-existing conditions. Employees and their families can receive treatment for chronic illnesses such as diabetes, hypertension, or heart conditions without waiting.

In-Patient Hospital Service

Employees and their dependents are covered for in-patient hospital expenses, such as surgeries, radiation therapy, or accident treatment. It ensures financial support for major medical procedures requiring hospital admission.

Pre and Post-Hospitalisation Expenses

Corporate health insurance covers costs incurred before and after hospitalisation. Pre-hospitalisation expenses, like diagnostic tests (blood tests, X-rays, etc.), and post-hospitalisation expenses, including medications and follow-up consultations, are reimbursed.

Day Care

Corporate health insurance covers daycare procedures like cataract surgeries or chemotherapy, even if hospitalisation lasts less than 24 hours. It ensures employees benefit from cutting-edge treatments without additional financial burdens, aligning with modern healthcare needs.

Domiciliary Hospitalisation Treatment

Another unorthodox feature of corporate health insurance is domiciliary hospitalisation treatment. It covers the at-home treatment of employees or their dependents and includes medical procedures performed under professional supervision in a home setting.

Emergency Ambulance Charges

Corporate health insurance covers emergency ambulance transportation costs for employees and their dependents. It ensures timely access to medical facilities without worrying about the financial implications of ambulance services.

Term Life And Accident Insurance

A corporate term life and accident insurance policy provides financial security to an employee's family in the event of death or disability during employment. In case of accidental injury or fatality, it offers a lump sum or periodic financial support to dependents, easing financial burdens. This assurance lets employees work peacefully, knowing their loved one's future is protected.

Maternity Benefits And Wellness Programs

Corporate insurance often includes maternity benefits, covering pregnancy, delivery, and newborn care expenses. This comprehensive coverage supports female employees, their families, and the spouses of male employees. Additionally, it covers the costs of childbirth and pre-and postnatal care, reducing financial stress and encouraging better health outcomes for mothers and infants.

Mental Health Support And Fitness Perks

Along with physical well-being, emotional well-being is also crucial. Acknowledging the same, many corporate insurance policies now offer mental health coverage. Employees can access therapy, stress management programs, and psychiatric consultations. It ensures professional support for the employees, promotes a healthier work environment, boosts productivity, and helps employees manage workplace challenges without compromising their mental health.

In Crux

People opt for corporate insurance because it provides more value for money than individual insurance. It usually includes hospitalisation expenses, accidental coverage, term coverage, pre and post-hospitalisation expenses, emergency ambulance charges, critical illness coverage, maternity coverage, daycare, and more. Therefore, employees opt for corporate insurance to access higher-quality coverage, ensuring better protection for their long-term physical and financial well-being.

Frequently Asked Questions

Who is covered under corporate insurance?

Generally, corporate insurance includes the employees and their immediate families. So, corporate insurance will cover you and your parents, spouse, and children.

How does the fixed sum insured in corporate insurance impact coverage and expense management?

The coverage under corporate insurance generally has a fixed sum insured that covers the cost. It means there is a predetermined limit on the amount the policy will pay for expenses, ensuring predictable coverage within that limit.

Can employees increase their insured amount under corporate insurance, and if so, how?

While it is not the norm, you can increase your insured amount by paying an additional premium to suit your financial needs better.

What happens to employees' corporate insurance policy when they leave the company?

As the employer purchases the insurance policy for their employees, once the employee discontinues, the policy is terminated.

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.