What is Group Medical Insurance for Employees?

Providing group medical insurance for employees is a smart investment for businesses aiming to enhance employee well-being and job satisfaction. This insurance plan covers a group of employees under a single policy, offering cost-effective healthcare benefits.

In India, it’s increasingly becoming a standard part of employee benefit packages, especially post-COVID, where health awareness has surged.

Key Features of Group Medical Insurance

🔹 Covers All Employees Under One Policy
🔹 Covers Hospitalization, Surgeries, and Daycare Procedures
🔹 Premium is Paid by Employer (sometimes partly by employee)
🔹 Cashless Treatment Across Network Hospitals
🔹 Add-on Covers Available: Maternity, OPD, Critical Illness

Benefits of Group Medical Insurance for Employees

✅ For Employers:

• Boosts Employee Morale & Loyalty
  
  

• Attracts Top Talent in Competitive Markets
  
  

• Tax Benefits Under Section 37(1) of the Income Tax Act
  
  

• Reduces Absenteeism with Better Health Support
  
  

✅ For Employees:

• Zero or Low Premium Cost
  
  

• Coverage Starts from Day One of Employment
  
  

• No Medical Check-up Needed
  
  

• Option to Add Family Members at Minimal Cost
  
  

What Does Group Medical Insurance Typically Cover?

How Much Does It Cost?

The premium for group medical insurance for employees varies based on:

• Number of employees covered
  
  

• Average age of the workforce
  
  

• Add-on covers (like maternity or parental coverage)
  
  

• Sum insured per employee (commonly ₹2 – ₹5 lakhs)
  
  

🧾 On average, it costs ₹2,000 – ₹5,000 per employee per year for basic coverage.

Why is Group Health Insurance Important in 2025?

With rising medical inflation, health insurance has become non-negotiable. Offering group medical insurance for employees is no longer just a perk—it's a necessity. It ensures financial protection for your workforce and demonstrates that you care about their well-being.

Additionally, it contributes to better productivity, improved retention, and a stronger employer brand.

How to Choose the Right Group Insurance Plan

✔️ Select a reputable insurer with a wide hospital network
✔️ Choose adequate coverage (min. ₹3–5 lakh per employee)
✔️ Opt for add-ons like maternity or parental cover
✔️ Compare policy terms, exclusions, and waiting periods
✔️ Ensure 24x7 claim support and TPA services

Conclusion

Group medical insurance for employees is a smart investment for any business. It offers tax benefits, ensures employee health security, and enhances your company’s image. With the right policy, you protect your most valuable asset—your people.