Employer-employee insurance is a type of plan bought by employers for their employees, which provides them with a sense of financial security in times of medical emergencies. It not only helps retain old staff but also attracts new talents, enhancing business growth. It covers accidental injuries, hospitalisation costs, medical expenses, or any other specified expenses for employees and their family members.
Eligibility Criteria
Provided are the eligibility parameters to be met to buy Employer Employee Insurance:
- There should be an official relationship between an employer and an employee. The employee must be in receipt of salary against the services provided by him to the employer.
- This insurance generally does not include part-time and contract-based employees.
- Any business, like a sole proprietorship, partnership, trust, or public limited entity that has any number of employees can purchase the policy.
- The loss-making companies can also buy employer-employee insurance.
- The employees on probation might have to face the waiting period, as in the case of some insurance companies.
- In the case of some insurance companies, employees are required to serve a specified period of service to avail of the medical benefits.
Benefits of Employer-Employee Insurance
The Employer-Employee has some benefits for both employers and employees. Let us take them up one by one:
Benefits for Employers
- Employee Retention
Employees feel a sense of recognition, which helps retain them and keeps them highly productive and motivated.
- Hiring New Talents
It helps attract new talents, as many individuals prefer working in an organisation offering medical coverage.
- Tax Benefits
It helps employers get a tax exemption on the amount of premium paid for an insurance plan.
- Employer-Employee Relationship
It helps build a mutual understanding and a strong bond between employer and employees, hence increasing the reputation of the employer.
- Increased Work Efficiency
It helps employees lead a healthier lifestyle, hence further increasing work efficiency and productivity.
Benefits for Employees
- Personal Health Care
Employees forming part of this plan will get free medical coverage in case of any emergency situation or hospitalisation.
- Family Cover
This plan includes not only employees but also their family members, i.e. spouses, parents, and children.
- Accident Cover
In case of any unforeseen road accident, employees also get coverage against hospitalisation due to road accidents and incidental injuries.
- Tax Benefits
Employees can also get tax exemptions on the premium paid towards health insurance u/s 80C.
- Cashless Treatment
This plan also provides employees with a cashless treatment, which means the expenses would be billed directly to the insurance company, and employees can get themselves treated free of cost.
Conclusion
Employer-employee insurance has become an integral part of business, offering a range of benefits to both employers and employees. Besides providing financial support to the employees, it also fosters a positive work culture, highly motivates them and helps increase productivity. It also helps attract new talent and retain employees, hence promoting overall well-being.
