Importance of Group Insurance in Workplaces Post-COVID Crisis

Most corporate organisations in India cover their employees under a group insurance policy. Read on to know about the importance of group insurance post-COVID-19 crisis.The onset of the COVID-19 pandemic has had a severe financial impact worldwide; it has affected millions of people. Today, even as the lockdown measures are eased, and slowly the businesses are trying to get back on their feet and operate like before, the economic activities are limited. According to McKinsey, due to the lockdown measures imposed by the government of India and the subsequent closure of businesses, India’s GDP (Gross Domestic Product) could reduce by 20% in the first quarter of the 2021 financial year.But, as the economies are opening cautiously and businesses are taking all the necessary measures to re-establish normalcy, they are also looking to adapt to the changes imposed by the COVID-19 pandemic. As the employers are trying to bring their employees back to the workplace, they are emphasizing on specific employee benefit measures like:

• Restricting the number of employees visiting the office to 30% of total strength to maintain proper social distancing.
• Providing a safe, secure, and thoroughly sanitised workspace.
• Stressing on wearing protective gear like face masks and shields inside the premises.
• Providing a health insurance cover to all the employees under group insurance. The insurance policy also includes protection against COVID-19 treatment expenses.

In the purview of the COVID-19 pandemic, employers worldwide realise that their workforce or the employees are the most critical and asset. By implementing a group insurance scheme for employees, the businesses are taking the right step towards securing their most prized assets and maintaining a healthy talent retention rate.Employers are realising the importance of group insurance as it enables them to:

• Protect the entire workforce under a single group insurance policy.
• Provide financial assistance to the employees and their families in times of need.

• Today, organisations are adopting more and more employee-centric policies. One such important step is to offer health insurance cover to all employees under a group insurance policy. The group insurance policies cover the employees’ family making, making them feel attached to the organisation and encouraging them to remain with the same company for a longer period.
• Another significant benefit of group insurance for employers is that such policies are available at a low cost. Since the policy covers several people and has limited coverage and benefits, the premium is low. And, also insurers offer an attractive corporate discount to the organisations.
• Buying group insurance for employees helps the employers avail themselves of tax benefits and reduce their annual tax liability.
• Most insurers give employers the flexibility to choose the premium payment mode. Depending on the company’s profile, the employer can choose the premium monthly, quarterly, or annually.

The benefits of group insurance for employees are not limited to getting coverage against medical expenses. Other benefits include:

• All employees get the health insurance cover by default by being a part of the organisation. It ensures that employees get basic insurance coverage, even to those who don’t hold any insurance.
• Irrespective of the health state, the group insurance policy covers all the members of the organisation. It is of great value to those who are looking for health insurance but cannot afford to pay a high premium because of their current health status.
• When it comes to group health insurance policy, the employees need not undergo a mandatory medical check-up or submit any medical reports to get the cover.

Final Word Thus, with so many amazing benefits of group healthcare policy for both employees and employers, the importance of group insurance post-COVID-19 crisis cannot be stressed enough.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.