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Aman Rana (@amanworld)
3 months ago

As a small business owner, you must consider several factors when purchasing employees group insurance. This is because employers should consider not only employees' needs, any industry requirements, and finances but also several other factors, such as specific coverages to opt for, how to choose the right plan, and more. 

This article will act as a step-by-step guide from consideration to coverage to help you choose or build the best employees group insurance policy for your company. So, keep reading for a comprehensive guide. 

What are the types of employees group insurance?

An employer can opt for several types of insurance as part of an employee group insurance scheme. Whether it is group health coverage, group personal accident insurance, group travel insurance, or public liability insurance, an employer can opt for several types of plans. These policies serve a different purpose but benefit employees who wish to enrol in them. These policies are provided for a preferential price entirely sponsored by the employer. 

Why employees group insurance schemes?

As an employer, one of the most important aspects of running a business, beyond setting goals and objectives and a direction for the company, is ensuring the well-being of those who are a part of the company. This includes not just safety and well-being but also creating a safe and productive workplace for employees to demonstrate their capabilities and witness a mutually beneficial development. 

How to choose the right employees group insurance?

Every individual employee's needs, organisation requirements, and industry-specific mandates are different. Employers need to consider certain specific factors to choose the right commercial health insurance plan for their employees. 

Here are some key factors you should remember to buy the right employees group insurance. 

Number of employees

As an employer, it is essential to consider the number of employees when purchasing employees group insurance, as this impacts the premium charged and the the policy one can opt for.

The average age of the employees

Consider the average age of employees to determine potential risk and evaluate how much an insurance premium might cost. 

Historical and current medical condition 

Any historical or pre-existing diseases can be attributed to a higher risk and result in a higher premium.

Industry requirements

Consider any specific industry requirements regarding coverage or minimum sum insured, etc.

Sum insured for each employee

Consider how much coverage you would like to offer to your employees. Usually, employers offer 3 lakh for single employees and 5 lakh for married employees. This sum can be increased or decreased depending on the specific needs and requirements of the organisation.

Coverage for dependents

Consider having coverage for dependents such as partners of the employee and their children.

Coverage for pre-existing diseases

Consider having coverage for pre-existing diseases like diabetes, hypertension, thyroid, depression, etc.

Maternity and newborn medical expenses

Evaluate whether the policy covers maternity and newborn medical costs. 

Hospital network

Assess the hospital network and determine whether any preferred healthcare providers are covered. 

Policy clauses such as waiting period, co-pay, deductibles

Consider clauses such as waiting periods, co-pays, and deductibles to determine specific conditions and not result in surprises at the last moment.

Consider these factors and consult a reliable health insurance agent or insurer to determine and buy the right insurance policy. 

How do you get the right corporate health insurance?

Once a business owner or decision maker has determined the specific type of plan and coverages they might want to offer their employees, organisations have one of three ways to buy corporate health insurance. 

  • The first and the most straightforward way of offering the right policy is to directly approach an insurance provider and negotiate a plan with them. By approaching a reliable insurance provider like Niva Bupa, the plan will be comprehensive, tailor-made for your organisation’s needs and affordable. 

  • The second way is to approach an insurance broker and consult with them for the policy. This is the best way if you do not know which insurer you would like to get insurance from. 

  • The third way is to partner with a bank and purchase a policy as an attachment to opening a company account or when getting a loan.


As an employer, you must consider several key considerations when purchasing corporate health insurance. However, whether it is convenience, cost-effectiveness, or customisability, group insurance is an excellent way for employers to benefit their employees. 

Employers can sponsor both contributory and non-contributory policies fully or partially. Additionally, by providing employer-sponsored corporate health insurance plans, employees can be protected from out-of-pocket expenses borne due to covered medical risks without paying for coverage.