Understanding Health Insurance for Remote Teams in India

Today, India is on the verge of becoming a global workplace due to its skilled talent pool. As remote working has opened up several market possibilities over the years, accessing these talents has become more effective. Many organizations in the West realized the potential and tapped into India’s remote work landscape by hiring employees through EOR services. After testing the waters, a few organizations established their entities in India.

Whether you are a founder or a C-level executive at any organization, if you want to expand your remote teams in India through EOR, you must consider a few factors. One of the primary factors is health insurance for your employees. You must have several questions. How does health insurance work in India? What are the norms? What is the premium cost? And many more.

This blog aims to resolve your concerns and questions about health insurance in India. We will also explore what are better options for health insurance coverage for your remote team in India. Lastly, we explain how Employer of Record (EOR) services play a pivotal role in establishing and securing your remote teams through insurance.

How Does India Perceive Health Insurance?

Health insurance is essential; however, this might differ for Indians due to several reasons stemming from the generations. The heavy reliance on conducting home remedies over going to the hospital is more common in the masses. It is common for people to buy medicine without seeking medical advice for minor colds, coughs, and fever symptoms.

In the event of an emergency where hospitalization is necessary, a health or admission card isn’t mandatory in India. Health insurance distribution in India is subject to decentralization and variation, so it is still optional to have health insurance in India.

According to a survey by the Indian Staffing Federation, 20-25% of candidates in India prioritize a higher salary over other employment benefits. However, the employees who prefer jobs with health insurance seek additional benefits, such as cashless hospitalization, reimbursement of medical expenses, and waiver of premium for critical illness.

How Does Health Insurance in the Indian Business Landscape Operate?

Insurance is a standard offering from Indian employers to mitigate potential workplace incidents or medical emergencies, thereby reducing their liability. Workplace health insurance in India can vary depending on the employer’s policies, company size, and the employees’ specific needs. The following factors can help organizations choose insurance plans that sit perfectly with them.

Group Health Insurance

Several employers in India provide group health insurance coverage to their employees. Group health insurance policies cover a defined group of employees of a specific organization. These policies offer various advantages, such as covering hospitalization expenses, pre and post-hospitalization costs, outpatient treatments, and occasionally maternity benefits. Group health insurance is comparatively better than Individual health insurance, which is much more expensive. Also, if you are opting for individual insurance, the insurers have the right to deny coverage or exclude certain conditions based on their underwriting criteria. If you have a pre-existing condition or a history of health issues, there may be limitations or exclusions in your individual policy. Thus, group health insurance is much more cost-efficient for similar benefits.

Employer/Employee Contribution

It is common for employers to cover part or all of their employees’ health insurance premiums. The level of employer contribution can vary depending on the organization’s policies. Some employers may cover the premium amount, while others may require employees to contribute a portion.

Comprehensive Coverage

Group health insurance plans in the workplace usually provide broad coverage, including hospitalization expenses, surgeries, diagnostic tests, medications, and specialist consultations. The coverage may also extend to pre-existing conditions after a waiting period, although specific terms and conditions can vary between insurance providers and policies.

Core Coverage and Features of Health Insurance

Here are some essential coverages you should know about.

• Dependents: Employees’ health insurance coverage often extends to their immediate family, including a spouse and children. In some instances, this coverage can also include the employees’ parents.

• Maternity: Sometimes, group health insurance has additional benefits, such as maternity. It covers pregnancy expenses and any complications that may arise during maternity. It generally includes coverage for prenatal care, hospitalization during delivery, postnatal care, and newborn baby coverage. In urban cities, the average cost of delivering a baby ranges from ₹50,000 to ₹70,000.

• COVID-19: With the emergence of the COVID-19 pandemic, some insurance companies in India have introduced specific health insurance policies that cover COVID-19-related medical expenses. It covers hospitalization, diagnostic tests, treatment, and sometimes quarantine-related costs.

Mentioned below are the essential features of health insurance.

• Cashless hospitalization: One of the critical features of group health insurance is the provision for cashless hospitalization. Employees with insurance can receive medical treatment at network hospitals without the need to make upfront payments. The insurance company settles the medical bills directly with the hospital, subject to the policy terms and conditions.

• Low premium costs: Employers or organizations offering group health insurance can negotiate the coverage, sum assured, and policy terms with the insurance provider based on the needs of their employees. Insurance premiums depend on factors such as pre-existing conditions, age, and specific conditions. The standard coverage starts from ₹5,00,000 with a monthly premium of around ₹800, almost accumulating around USD 10. However, the coverage amount can differ as per employers’ wishes. The premium amount is a part of employees’ CTC (cost-to-company). Here are a few insurance plans that employers can offer to employees.

• Customizable insurance plans: Customizable plans are also available to offer better insurance benefits for their employees. Workers can also choose insurance benefits, terms, and conditions according to their family and financial goals. Employers consider health insurance essential to their overall employee benefits strategy, recognizing its significance in fostering a healthy and productive workforce. However, as the insurance cost in India is much more affordable, employers can also go above and beyond to offer dental and vision insurance, as they aren’t a part of standard coverage. The Indian government plays a significant role in shaping corporate policies through regulations and initiatives that promote social welfare and inclusive growth. An initiative such as the Employee State Insurance (ESI) Act of 1948 provides specific benefits to employees. These benefits include medical, maternity, sickness, dependants, disability, and more.

EOR: Ensuring Maximum Insurance Benefits for Employees in India

Choosing the right insurance plans is essential for your employees; however, selecting an EOR (Employer of Record) shouldn’t be solely based on the insurance they offer in India. As Indian EORs can customize insurance for you that is cost-efficient and according to the industry standards to ensure maximum benefits for your remote employees.

Remunance, a local EOR partner in India, can be your catalyst to form your remote team in India while also ensuring their well-being. We have vast experience working with clients worldwide and are well-equipped to offer our services in HR support, insurance, accounting, legal matters, and compliance risk to help you. We provide informed guidance, prompt response, and complete transparency and tailor our solution to your needs.

Remunance offers group health insurance from prominent insurers such as Bajaj, Tata AIG, and more. The health insurance plans extend their coverage to employees’ immediate family, including a spouse and a maximum of two children. However, there will be an additional premium cost for their immediate family. Under these insurance plans, they get several benefits, such as maternity cover, accidental cover, and cashless services in case of hospitalization.

The cost of insurance premiums for your employees is already included in the service charge taken. Thus, you don’t need to pay additional fees. Remunance can offer the best insurance to your remote employees with a low-cost premium. Remunance can help you manage your insurance benefits, so you can focus on running your business. To learn more about Remunance, feel free to reach out.