Top Benefits of Corporate Health Insurance for Employees and Employers

Corporate Health Insurance has emerged as an effective and popular perk offered by employers. Healthcare costs have been historically rising more than average inflation rates. Further, an estimate suggests that during the next 5-10-year period, healthcare costs shall increase by almost 14% per annum. Employers wish to cover these costs and ensure their employees’ well-being.

As an employee, you need not worry about contingent liabilities or possible bankruptcy if you or anyone from your family is hospitalized. From the employers' perspective, it is an effective tool to attract and retain top talent while fostering a healthier, more productive work environment. As Indian companies increasingly become more aware of employee welfare schemes, this is an excellent step and ensures a win-win for both parties.

Corporate Health Insurance: Explained

It is a group insurance policy bought by an employer that extends health insurance benefits to employees and their families. It is different from a health insurance policy, which is purchased individually. Here, the employer centrally manages and funds the entire group insurance.

The salient features of corporate health insurance include comprehensive benefits, such as hospitalization, outpatient care, maternity coverage, and access to a network of partner hospitals. It is highly cost-effective and extends a coverage umbrella to employees, especially at middle and lower management levels. The coverage typically ends with an employee leaving the organization, but in some cases, it might be extended to a specified period.

Corporate Health Insurance Benefits

Corporate health insurance creates a win-win situation for both employers and employees. Here are the most critical benefits it offers to both the parties:

Corporate Health Insurance’s Importance for India Inc.

With rising healthcare costs, corporate health insurance ensures that employees always have access to the highest quality of care and covers financial emergencies. These policies ensure timely access to quality healthcare without the burden of out-of-pocket expenses.

The importance of social responsibility and corporate governance in Indian companies has increased significantly, and offering corporate health insurance is one of the positive steps in attaining such obligations.

FAQs

• What is the difference between corporate health insurance and individual health insurance?

Corporate health insurance is a group policy funded by employers for employees and their families, while individual health insurance is purchased independently by an individual for personal coverage.

• Does corporate health insurance cover family members?

Yes, most corporate health insurance plans extend coverage to immediate family members, including spouses, children, and sometimes parents.

• What happens to corporate health insurance after leaving the job?

Corporate health insurance coverage typically ends upon leaving the job, although some companies may offer extended coverage for a specified period.

• Are employees taxed for corporate health insurance premiums paid by employers?

No, employees are not taxed on employers' premiums for corporate health insurance, making it a cost-free benefit.

• Can an employee customize their corporate health insurance plan?

Some employers offer flexibility to enhance coverage through add-ons or top-up plans, but the core policy features are typically standardized for all employees.

• Is maternity coverage included in corporate health insurance?

Yes, most corporate health insurance plans include maternity benefits, covering prenatal care, delivery expenses, and postnatal care, though coverage limits may vary.

• Does corporate health insurance cover pre-existing diseases?

Many corporate health insurance policies cover pre-existing conditions from day one, unlike individual policies that often have waiting periods, but this depends on the insurer’s terms.