The Impact of Commercial Health Insurance on Employee Health and Productivity
Private companies provide commercial health insurance to their employees so that their medical expenditures can be covered. Administered by non-government organisations, this insurance provides continuous support and also acts as a productivity boost for the insured.
What is Commercial Health Insurance? A Brief Overview
The health insurance plan is regulated by IRDAI – Insurance Regulatory and Development Authority of India.
Companies that are enrolled with health insurance offer medical expense coverage to their employees. The expenses include hospitalisation, doctor visitations, medication, and diagnostic tests.
The policyholder (in this case, the company) pays a specific premium amount to the insurance company so that the insured’s medical expenses up to a certain amount can be covered. There are a few policies where copayments and deductibles are also included. In that case, the policyholder has to pay a specific amount before the company starts to pay for the medical bills.
What Are the Benefits of Commercial Insurance for the Employees?
Financial protection: One of the primary benefits of this insurance is that it provides financial protection against unexpected medical expenses. Policyholders pay a premium to the insurance company, and in exchange, the insurance company covers their medical expenses up to a certain limit, reducing the financial burden on the policyholder.
Wide range of coverage options: The policy can be customised to suit the specific needs of the policyholder and their family members. This means that policyholders can choose a policy that offers coverage for the medical expenses they are most likely to incur, such as hospitalisation, surgery, or outpatient consultations.
Cashless hospitalisation: Many commercial insurance policies offer cashless hospitalisation, which means that policyholders can receive medical treatment at a network hospital without having to pay upfront. The insurance company would directly settle the bill with the hospital.
Tax benefits: Policyholders can claim a tax deduction for the premium paid towards their health insurance policy under Section 80D of the Income Tax Act.
Access to quality healthcare: This policy often comes with additional benefits such as access to a network of healthcare providers and wellness programs that can help policyholders maintain good health and prevent illness.
What Are the Benefits of Commercial Property Insurance for the Company?
Attracting and retaining talent: Offering health insurance as part of an employee benefits package helps companies attract and retain talented employees. It demonstrates that the company values the well-being of its employees and is willing to invest in their health.
Improved productivity: When employees have access to healthcare, they are more likely to seek treatment when they need it, which can help prevent minor health issues from turning into major health problems.
Reduced healthcare costs: By providing health insurance, companies support employees to manage their health and prevent illness. This can lead to reduced healthcare costs over time, as employees are less likely to require expensive medical treatments.
Tax benefits: Companies can claim a tax deduction for the premium paid towards their employee's health insurance policy as a business expense.
Compliance with labour laws: In India, the Employees' State Insurance Act (ESI) mandates that companies with 10 or more employees provide health insurance coverage. The policy helps comply with this law and avoid penalties for non-compliance.
Small business insurance is specifically beneficial as it helps strengthen its workforce and move ahead of the competition.
How to Apply for Commercial Property Insurance?
Here is how you can apply for the insurance:
Research: Start by researching different health insurance policies offered by private insurance companies in India. You can use online comparison tools to compare the features, coverage, and premiums of different policies.
Select a policy: Once you have narrowed down your options, select a policy that meets your specific needs and budget.
Fill out an application: You can apply for health insurance online by visiting the website of the insurance company you have selected. Fill out the application form with accurate and complete information, including personal details, medical history, and contact information.
Submit documents: You will need to submit supporting documents, such as identity proof, address proof, and medical reports, as required by the insurance company.
Pay premiums: After the application is approved, you will need to pay the premium for the policy. You can pay the premium online using a credit card, debit card, or net banking.
Receive policy documents: Once the premium is paid, the insurance company will send you the policy documents via email or post.
Conclusion
Commercial insurance plan is an important choice for financial stability. Cover your medical bills and stay stress-free from the unpredictable expenses. Consult Niva Bupa Insurers to learn more about the impact of commercial insurance.