10 Reasons Why Companies Should Offer Employee Health Insurance

  • Author :
  • TATA AIG Team
  • Published on :
  • 12/03/2024

In the Industrial Revolution, labour was just an additional expense that could be regulated and reduced for cost-cutting. Now, that is not the case! The human resource of a company is not merely a resource, it is the spine that carries the weight of duties, responsibilities and commitments of the company.

Right from huge organisations to small and medium-sized companies, every business has started to offer better working conditions, retirement benefits, and financial tools like health insurance to protect their employees’ financial future. However, there are still companies that are rigid and reluctant regarding medical insurance benefits for employees.

This blog will offer 10 big reasons for them to stop and think about providing medical insurance plans to their employees.

Top 10 Reasons Why Companies Must Offer Health Care Benefits for Employees

All-Round Coverage for Every Employee

In a company, people come from different economic and social backgrounds. For some, affording individual health insurance is almost impossible due to the impending responsibilities on their shoulders.

With an employee medical health plan, these employees will receive all the medical insurance benefits for employees.

Access To Great Health Care

One of the biggest health insurance benefits for employees is the access they get to high-quality health care in this economy.

With cashless health insurance, the insured can visit any hospital, network or not, and receive cashless healthcare.

Thus, employees receive optimal healthcare at no expense at all.

Hassle-Free Claim Process

With different kinds of technical tools at our disposal, managing the claims, processes, remembering policy dates, etc., has become a cakewalk. These tools make the claim settlement procedure hassle-free, seamless, and quick.

This is one of the best medical insurance benefits for employees, but it is as beneficial for the employer too. The reason is that the employer does not have to go through every employee’s policy to renew or settle the claim, and the technical tool does it for them.

No Waiting Period

With most health insurance, standalone or family, there is a certain amount of period the insured has to wait for until they can raise a claim. This is called a waiting period. This is a hedge against financial loss for the insurance company since it can be a sacrificial and unrealistic deal for them without a waiting period.

But with employee health insurance, the concerned employee does not have to wait before raising a claim, if the need be.

Preventative Health Care

As we all know, the employee health policy offers great benefits if an employee or their family falls ill. What most people do not know is that this policy also provides monetary compensation for preventative treatments and measures. All the efforts that one makes to not fall ill, like timely checkups, also come under employee health insurance coverage!

Tax Benefits From Incentives

Health insurance looks like an added expense to many, but it is actually the exact opposite of that. It not only saves the insured from a potential financial loss but also reduces the amount of tax they pay due to the tax benefits according to Indian tax laws.

The premium paid by the employer and employee is deducted from the taxable amount, and the respective parties’ tax amount is reduced, making it a beneficial investment for the employer.

Attracting and Retaining Good Talent

When the company provides good working conditions, the word spreads. This leads to great and genuine talent being attracted to the company. This is extremely important for a company since an organisation is as good as its best employees.

When the company attracts good employees, they will make good use of their knowledge for the business and its growth.

Apart from that, these principles help retain employees. In the age of job hoppers, retention of talent matters a lot.

Enhanced Employee Motivation and Productivity

With a great working space and environment, the employees feel motivated. As long as the company is providing substantial benefits to the employees that make them feel safe and secure, they will feel motivated to work for it. This is also one of the biggest reasons for employee retention.

Along with that, there will be a significant increase in the productivity of these employees. This is also a result of excellent service provision. Hence, ensure good benefits and get exceptional returns because the more one gives, the more one will receive!

Good Reputation Among Competitors

Reputation is an essential determinant of success in today’s day and age. It decides the flow of employees, clients, and customers to the company. If there is anything that will help the company to improve and create a good reputation in the market, it is the performance! There is no other alternative; the company has to perform.

In order to perform, the company must attract great employees, retain them, and show them that this company is the best for them. All of this is possible with a good working environment with few provisions like employee health insurance.

Progressive And Modern Company Culture

A company’s culture is a significant component of the company, and employees consider it one of the most important factors when choosing a place to work. Having an open, progressive, modern, and flexible company culture is the best way to operate nowadays.

One of the factors that makes a company a progressive one is how it treats its employees. It might be the sole most significant factor! Providing employee health care is a sign of genuine care and awareness among the employer for the employees.

The abovementioned reasons are enough to make rigid and redundant employers purchase good employee health insurance plans. Nevertheless, it is more important to create awareness about all the benefits it provides, and this blog talked about them!

An Effort For The Collective: Tata AIG Group Health Insurance Policy

Buy Tata AIG’s group medical insurance policy for employees that provides a comprehensive answer to the financial worries related to potential health costs. It covers the employees but also extends assistance to their immediate families.

Buy employees’ financial safety and good health with the help of great plans offered by Tata AIG.

Final Thoughts

Buying commercial insurance like SME insurance and group medical insurance improves the overall condition of the business, complies with legality, enhances business credibility and steadiness and provides security against financial losses.

The abovementioned benefits portray a great scope of use when it comes to employee health coverage. Above all else, employees’ health and wellness are always the priority for the growth and development of the business.


What is the top benefit of providing group health insurance to your employees?

Employee satisfaction and health care benefits are the top benefits of offering your employees the best possible group health insurance plan.

Why don’t the majority of companies provide employee health insurance?

The majority of companies do not offer employee medical insurance because there is a lack of awareness about it. Also, some employers consider it an additional business expense without realising the long-term benefits of the same.

What is the offering of employee health insurance?

Employee health insurance policies cater to a group of people, not an individual. It provides dental care, vision care, orthopaedic, outpatient, and inpatient coverage.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

Tata AIG Also Offers Insurance for the below products

Car Insurance

Two Wheeler Insurance

Travel Insurance

Health Insurance