As the world continues to grapple with the impact of the COVID-19 pandemic, employee health and well-being has taken centre stage. In India, however, a recent study by Plum, an employee health insurance platform, has revealed that less than 5% of employers in the country provide comprehensive insurance and benefits to their employees.
The Plum study, titled “The State of Employee Benefits 2023,” assessed over 2,500 employer-sponsored health insurance plans across businesses of all sizes. The report paints a concerning picture of the lack of comprehensive insurance coverage and benefits offered to Indian employees.
In this article, we will explore some of the key findings of the study and offer insights into how employers can better provide for their employees’ health and well-being.
Benefits Coverage
The Plum study reveals that only 5% of Indian employers offer comprehensive insurance and benefits that include group medical cover, personal accident cover, term life insurance, and telehealth. The remaining 95% fall short of providing adequate coverage for their employees.
Maternity Coverage
Maternity coverage is offered by more than half (56%) of companies to their employees. However, the median sum insured for normal and Caesarean deliveries is only INR52,000 and INR55,000, respectively. This is significantly lower than the cost of childbirth in private hospitals, which ranges from INR45,000 to INR200,000. Thus, employees are left with a significant financial burden to bear.
Health Insurance
Out-of-pocket spending constitutes 65% of India’s healthcare expenditure. Yet, 98% of Indian companies do not offer OPD coverage with insurance, and 58% do not offer telehealth consultations on top of their group medical cover. Moreover, only 10% of companies offer health checkups to their employees.
Term Life Insurance
Term life insurance is often ignored by India’s employers, with 95% of companies not offering this benefit to their employees. Additionally, 77% of companies do not offer group personal accident and disability coverage in addition to health insurance.
Recommendations for Employers
The Plum report provides several recommendations to employers to help bridge the gap in coverage and benefits for employees. These include:
- Increasing the sum insured of the group medical cover to INR500,000, which is the recommended amount.
- Offering comprehensive coverage for family members and parents.
- Providing coverage for mental health conditions.
- Offering term life insurance and group personal accident and disability coverage in addition to health insurance.
- Providing telehealth consultations and health checkups to employees.
- The report emphasizes that offering comprehensive insurance coverage and benefits is not only essential for employee well-being but also contributes to a company’s success. It helps in attracting and retaining employees, reducing absenteeism, and boosting productivity.
Conclusion
The Plum study highlights the gap in comprehensive insurance coverage and benefits offered by Indian employers to their employees. With the rising cost of healthcare and the impact of the COVID-19 pandemic, it is imperative that employers prioritize the health and well-being of their employees. By offering comprehensive insurance coverage and benefits, employers can not only contribute to their employees’ well-being but also improve their bottom line.
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