{"id":3308,"date":"2020-09-01T10:55:16","date_gmt":"2020-09-01T05:25:16","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=3308"},"modified":"2023-04-25T00:04:03","modified_gmt":"2023-04-24T18:34:03","slug":"group-health-insurance-employees-opfin","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/","title":{"rendered":"5 Reasons Why Your Business Should Offer Group Health Insurance"},"content":{"rendered":"<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Health insurance has become a necessity for every individual, especially when the whole world is fighting against COVID-19 pandemic. Also, the government has mandated businesses to provide group health insurance to their employees as a part of Post-COVID operating guidelines.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Therefore, it\u2019s time for SMEs to consider providing health insurance cover to their employees. This will build a feeling of safety among employees and will keep them motivated towards achieving organisational goals even during such difficult times.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">There are many reasons why group insurance can work in favour of an organisation. But before we get into the significance of providing group health insurance to your employees, some context about group health insurance.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e168086d6aa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e168086d6aa\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/#What-is-Group-health-insurance\" >What is Group health insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/#Why-SMEs-should-offer-group-insurance-to-their-employees\" >Why SMEs should offer group insurance to their employees?\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/#1-Lower-premiums-better-benefits-when-compared-to-individual-health-cover\" >1. Lower premiums, better benefits when compared to individual health cover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/#2-Improves-hiring-and-recruitment\" >2. Improves hiring and recruitment\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/#3-Enhances-loyalty-and-retention\" >3. Enhances loyalty and retention<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/#4-Healthier-employees-are-often-more-productive\" >4. Healthier employees are often more productive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/#5-Fosters-a-conducive-company-culture\" >5. Fosters a conducive company culture\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/#Benefits-of-group-health-insurance-for-employees\" >Benefits of group health insurance for employees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/#Challenges-in-providing-group-health-insurance\" >Challenges in providing group health insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/#The-prescription-%E2%80%93-RazorpayX-Payroll\" >The prescription &#8211; RazorpayX Payroll<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/payroll\/learn\/group-health-insurance-employees-opfin\/#Whats-new-in-store\" >What\u2019s new in store\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"What-is-Group-health-insurance\"><\/span><span style=\"font-weight: 400;\">What is Group health insurance?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">A group health insurance is similar to medical insurance that covers all the members of a particular group. In this case, the particular group referred are the employees of an organisation.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Under a group insurance policy, members get insurance cover at a reduced price as the provider\u2019s risk is spread across a larger group of policyholders. This scheme covers the financial distress of employees against unexpected health issues, accidents, or any mishaps. Such policy works under specified terms and conditions which apply to the entire group of insured people.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Generally, employees, their spouses, dependent parents and children are covered under group health insurance schemes. Also, some policies cover pre-existing diseases and maternity from the first day; while others provide a cover after the completion of a specific period.\u00a0<\/span><\/p>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"Why-SMEs-should-offer-group-insurance-to-their-employees\"><\/span><span style=\"font-weight: 400;\">Why SMEs should offer group insurance to their employees?\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here are some of the key features of group insurance for employees.<\/p>\n<h3 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"1-Lower-premiums-better-benefits-when-compared-to-individual-health-cover\"><\/span><span style=\"font-weight: 400;\">1. Lower premiums, better benefits when compared to individual health cover<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Availing a <a href=\"https:\/\/razorpay.com\/learn\/tax-benefits-of-group-health-insurance\/\">group health insurance plan is more affordable<\/a> than enrolling for an individual insurance plan. Individuals are covered from the first day of taking this health cover. The coverage includes maternity and pre-existing diseases too.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Whereas, a personal health cover is more expensive than a group medical cover. In individual health cover, pre-existing diseases are covered after 4 years of taking the policy. Maternity cover is also costly in this insurance as compared to group medical cover.<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Group health insurance schemes tend to have a lower per-person cost due to a significant risk pool. Also, the risk of loss spreads out among more number of people, thereby reducing the average cost per employee.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The group size and number of employees receiving health cover makes a significant difference in group health insurance premiums. Generally, the insurance plan is cheaper for larger group size.\u00a0\u00a0<\/span><\/p>\n<h3 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"2-Improves-hiring-and-recruitment\"><\/span><span style=\"font-weight: 400;\">2. Improves hiring and recruitment\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">SMEs with group health insurance is preferred by the employees over employers who don\u2019t offer health coverage. These businesses can attract and retain talented individuals by offering incentives like health insurance.\u00a0\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\">[bctt tweet=&#8221;According to a survey conducted by Fractl back in 2017, most of the job seekers choose a lower-paying job with benefits like health insurance, flexible working hours over a high-paying job.\u00a0&#8221; via=&#8221;no&#8221;]<\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Offering health insurance cover substantially distinguishes businesses from their competitors because it creates a sense of belonging among candidates. The candidates tend to choose employers where employees\u2019 well being is of utmost importance.\u00a0<\/span><\/p>\n<h3 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"3-Enhances-loyalty-and-retention\"><\/span><span style=\"font-weight: 400;\">3. Enhances loyalty and retention<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">A rise in employees\u2019 pay is not the only way to retain employees, and it is also not always a feasible option for small businesses.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Offering group health insurance to employees might prove to be an effective way to gain employee loyalty and retain quality talent. According to a 2015 <\/span><a href=\"https:\/\/www.glassdoor.com\/blog\/ecs-q3-2015\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Glassdoor survey<\/span><\/a><span style=\"font-weight: 400;\">, about 4 of 5 employees prefer benefits or incentives over a pay raise, with 40% valuing health insurance higher than any other benefit.<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Moreover, small businesses might lose a considerable amount if their employees are not provided with benefits or perks. Given the time and cost needed to find the right fit for a job profile and train them, it will be worth prioritising employee loyalty and keeping the business running smoothly.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The cost of providing health coverage to employees at lower rates might be much lower than extra costs borne by high employee turnover.\u00a0<\/span><\/p>\n<h3 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"4-Healthier-employees-are-often-more-productive\"><\/span><span style=\"font-weight: 400;\">4. Healthier employees are often more productive<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">With group medical cover, employees gain greater access to medical resources. They work with peace of mind as they can rely on health insurance coverage in case of any medical emergency or illness.\u00a0\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">For small businesses, providing health insurance to employees can lead to fewer sick leaves and more productive and focussed hours. It is more cost-effective for SMEs to offer health cover rather than deal with lost time and lower productivity due to frequent absences.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Easy access to medical resources might contribute to early return to work from employees. Ultimately, healthier employees can add to workforce productivity and help bolster the success of a small business.\u00a0<\/span><\/p>\n<h3 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"5-Fosters-a-conducive-company-culture\"><\/span><span style=\"font-weight: 400;\">5. Fosters a conducive company culture\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Happy and satisfied employees can help build a healthy culture for your organisation.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Offering group health insurance will make employees believe that employers are concerned about their health; hence boosting their morale to outperform their responsibilities.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Often, employees are happier with a slight reduction in their take-home salary with group insurance, as an individual health insurance policy might cost them a fortune.\u00a0<\/span><\/p>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"Benefits-of-group-health-insurance-for-employees\"><\/span><span style=\"font-weight: 400;\">Benefits of group health insurance for employees<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><em><span style=\"font-weight: 400;\">Here are the direct benefits an employee can get with group health insurance which they don\u2019t receive with individual health insurance.\u00a0<\/span><\/em><\/p>\n<ul data-read-aloud-multi-block=\"true\">\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The policy covers the insured from day one of joining a company<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Maternity benefits for an employee or their spouse, which is not included in personal health cover<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Cheaper for employees than individual health insurance plans<\/span><\/li>\n<\/ul>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"Challenges-in-providing-group-health-insurance\"><\/span><span style=\"font-weight: 400;\">Challenges in providing group health insurance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The idea behind group health insurance is to insure a larger group of people with minimum insurance premium; hence minimising the risk of insurance providers. Therefore, small businesses and startups do not have access to group health insurance due to the lesser number of employees.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Moreover, the Insurance Regulatory Department (IRDA) mandates a minimum of 7 employees to avail group health insurance policy.<\/span><\/p>\n<p data-speechify-sentence=\"\"><em><strong>That\u2019s not all!\u00a0<\/strong><\/em><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Here are more challenges faced by businesses and employees in SMEs.<\/span><\/p>\n<ol data-read-aloud-multi-block=\"true\">\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Lack of higher employee strength makes group health insurance an expensive affair for small businesses\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">For a smaller group of people, insurance providers do not offer customisations in policy structure. Benefits like maternity cover, pre-existing disease coverage are rarely offered by policy providers\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">There are certain times when an employer cherry-picks some employees for providing health insurance, leaving others behind<\/span><\/li>\n<\/ol>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"The-prescription-%E2%80%93-RazorpayX-Payroll\"><\/span><span style=\"font-weight: 400;\">The prescription &#8211; RazorpayX Payroll<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">We, at RazorpayX Payroll, understand your concern for the well-being of employees, and we strive to simplify all things employees for small and medium businesses.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">RazorpayX Payroll is an <a href=\"https:\/\/razorpay.com\/learn\/automated-payroll-software-change-management\/\">automated payroll system<\/a> that helps businesses to effortlessly execute every element of their payroll cycle. It is user-friendly software with a neat interactive dashboard that can reduce time spent on payroll execution from 6-7 hours to just 10 minutes per month.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">All you need to do is get your employees\u2019 data into the software and let the magic of RazorpayX Payroll work.<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Moreover, the software automatically takes care of TDS, PT, PF and ESI payments along with their periodic return filings.\u00a0<\/span><\/p>\n<h3 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"Whats-new-in-store\"><\/span><span style=\"font-weight: 400;\">What\u2019s new in store<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/group-health-insurance\/\">RazorpayX Payroll provides group health insurance<\/a> to all the employees of its customers, even if employee strength is 2.\u00a0<\/span><\/p>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Now, you must be thinking how an automated payroll software will help you avail group health insurance for your employees. Here\u2019s how.<\/span><\/p>\n<ol data-read-aloud-multi-block=\"true\">\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Being an automated payroll execution platform, RazorpayX Payroll can easily <\/span><b>manage your employee data<\/b><span style=\"font-weight: 400;\">. Any recruitment or exit will automatically synchronise with the insurance providers&#8217; database. You can focus on your business while we take care of your payroll execution along with the employees&#8217; well-being<\/span><\/li>\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">RazorpayX Payroll has partnered with an insurance provider that will provide <\/span><b>customised policies<\/b><span style=\"font-weight: 400;\"> to your employees at a very economical premium. These policies will include coverage for pre-existing diseases as well<\/span><\/li>\n<\/ol>\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">All you have to do to access the best-in-class group medical cover is automate your payroll processing and execution with RazorpayX Payroll!<\/span><\/p>\n<div style=\"text-align: center;\" data-speechify-sentence=\"\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/insurance\/?r=whyinsurance\">Try RazorpayX Payroll now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>A group health insurance is similar to medical insurance that covers all the members of a particular group. Employers should provide group health insurance to their employees to build a feeling of safety among them. <\/p>\n","protected":false},"author":151156469,"featured_media":3338,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3476,3404],"tags":[3466],"class_list":{"0":"post-3308","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll-glossary","8":"category-payroll","9":"tag-group-health-insurance"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156469"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=3308"}],"version-history":[{"count":16,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3308\/revisions"}],"predecessor-version":[{"id":6840,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3308\/revisions\/6840"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/3338"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=3308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=3308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=3308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}