30% employers don’t provide insurance cover to staff’s families

75% employers do not extend insurance cover to the parents of their employees

0
16332

Although group health insurance can cover the employees as well as their dependents, a report reveals that only 30 per cent employers extend benefits to the families of their employees. An alarming 75 per cent of employers fail to extend benefits to the parents of their employees. This is rather disturbing, because the likelihood of employees raising claims for their families is much higher than for their own selves.

As per the report by an Indian employee benefits and digital healthcare platform, while seven out of 10 early-stage companies (with less than 200 employees) extend benefits to their employees’ families, nine out of 10 growth-stage companies (with more than 200 and less than 750 employees in the workforce) do so. Nine out of 10 mature companies (with a workforce strength of over 750) also extend benefits to their staff’s families.

The recommended sum insured is Rs 5 lakh, but most companies offer to insure a median sum of Rs 3 lakhs, which is 40 per cent less than the recommended amount.

The median sum insured by growth-stage companies is Rs 4 lakh, while the median sum insured by mature companies is Rs 5 lakhs.

The cost of childbirth in tier 1 cities and metros is on an average, Rs 45,000 to Rs 50,000. Private hospitals charge anywhere between Rs 70,000 to Rs 2 lakh for a c-section, depending on the condition or complications. While 56 per cent of employers offer maternity benefits to the women in their workforce, the median maternity cover offered is Rs 52,000 for normal delivery and Rs 55,000 for a caesarean.

While 53 per cent early-stage companies offer maternity benefits, only 10 per cent of these offer more than Rs 50,000. While 88 per cent of growth-stage companies offer maternity benefits, only 40 per cent of these offer benefits worth over Rs 50,000.

An encouraging 93 per cent of mature companies offer maternity benefits, with half of them offering more than Rs 50,000. The minimum coverage recommended for tier 1 cities is, however, Rs 1 lakh.

Comment on the Article

Please enter your comment!
Please enter your name here

10 + 6 =