Health Insurance for Employees: Introduction, Importance, and Legal Landscape

Frontline workers perform the most essential functions in our society and yet are neglected by employers, people, and the Government. However, companies are now waking up to the value that they bring to the table.

India houses 500 million blue-collar workers who work as farmers, labourers, delivery men, gardeners, plumbers, electricians, etc. Around 35% of student gig workers said that they seek flexibility in their gigs. For non-students, taking up gig work is mostly for financial reasons (34%) and they look for employment stability (40%) and non-monetary perks (15%) like health insurance in their gig work decision.

Blue collar workers are one of the most unappreciated groups of people in India. They perform the most essential functions in our society and yet are neglected by employers, people, and the Government. However, companies are now waking up to the value that they bring to the table. Health insurance is how employers are luring blue-collar workers. This article delves deep into employee health insurance for front line workers in India.

Why Employers are Opting for Health Insurance for Blue Collar Workers

  • Employers are offering insurance for labour as a way to get blue-collar workers to stay with them. It’s interesting to note that these organisations provide insurance to tradespeople who aren’t employees, such as plumbers, electricians, painters, and carpenters.
  • The income of blue-collar workers is insufficient to access top-notch, high-cost healthcare facilities. The health and safety of workers are jeopardised when they are regularly exposed to potentially harmful elements such as dust, chemicals, heat, and other potentially explosive materials.
  • A person’s ability to receive adequate mental and physical health care is directly related to his or her ability to afford health insurance. Employee well-being improves over time, resulting in lower absenteeism and higher output.
  • Worker’s compensation insurance, for example, is not only required by law, but is also critical for businesses that want to avoid increased costs and lawsuits. It will cover any costs incurred as a result of an employee’s incapacity, injury, or death while on the job. Due to the loss of income, workers may be able to use the compensation money to assist their families.
  • The premiums that corporations pay to support employee benefits are considered an expense by the accounting system. Therefore, employers get tax benefits for employee health insurance.
  • There are few advantages for blue-collar workers who are eligible for Social Security. Life insurance and health insurance help employees feel like they’re being taken care of by their employers. As a result, they are more motivated to do their best work.
  • Companies can now provide insurance for labours that are specifically tailored to their needs. For example, they can give full health coverage for employees and their dependents as well as telemedicine services, reduced-cost medications, and other perks to boost morale.

Factors to Consider When Buying Group Health Insurance for Employees

  • Employee insurance may be more appealing to blue-collar workers because they earn less than their white-collar colleagues. The mental health of blue-collar workers should be the next consideration. Considering that not all types of insurance cover mental health, it’s essential to do so.
  • Physical stress is another consideration for blue-collar workers when purchasing healthcare coverage. Because blue-collar jobs require a great deal of manual labour, those who work in them should think about the benefits of chiropractic care, for example. Wellness is a final consideration for blue-collar workers to keep in mind when purchasing healthcare insurance. Nutritional needs are still vital, although these tasks require a lot of effort.
  • When it comes to purchasing health insurance for blue collar employees, you need to take several issues into account as well. Mental health and wellness are two characteristics that affect both white-collar and blue-collar workers. Front line workers are at an elevated risk of suicide because of their stressful jobs.
  • These workers’ well-being can be protected if they have access to mental health services. It’s because people in high-stress front collar occupations may turn to drugs and alcohol as a way to cope.
  • Today, India Inc. places a high value on digital transformation. Workers are being retrained and reskilled to take on new responsibilities in the workplace. Insurance offerings must be digitalised when all of their work is done online. If you want a digitalised insurance mechanism, BetterPlace has you covered. They provide the best full-stack end-to-end technological solution for all your employee insurance related needs.
  • It’s vital to keep in mind that although older workers are learning to use new technology, the younger workforce was reared in a digital world. Worker onboarding, insurance detail monitoring, as well as other features must be made available online.

Change in Legal Landscape

  • A fresh wave of labour reforms is being introduced in India by enacting the four labour codes, which will cover 38 million workers in the informal sector, Gig workers will be covered by social insurance plans under the new 2020 social security code.
  • The Employee State Insurance programme will cover these workers (ESIC). All low-income workers who are not covered by the ESIC Act 1948 will be eligible for medical insurance coverage. For India Inc., this is a new age in which workers will be the driving force behind the country’s economic resurgence.
  • Companies may project themselves as ethical and inclusive businesses if they offer their employees suitable insurance benefits. This is something that young consumers greatly respect. As a result, in addition to serving as a legal need, employee insurance benefits can also serve to improve a company’s brand image.

The blue-collar ecosystem is about to undergo a dramatic transformation as a result of changing expectations on the part of job searchers and the resulting impact on employers.

Migrant workers have more or less returned in search of regular income, and they expect a safe, healthy, and stable workplace. Migrant workers need the assurance of a guaranteed salary and medical insurance coverage.

As an insurance-centric technology company, BetterPlace provides a complete end-to-end solution to health insurance for employees. Benefits programmes can be tailored to meet the needs of individual companies, and thorough reports can be generated to analyse policy utilisation, cost reduction, and return on investment.

Frequently Asked Questions

1. Why do companies provide health insurance for employees?

Here are some reasons why companies provide employees with health insurance:

  • Having a group health insurance plan can keep employees from leaving.
  • Providing employees and their families with health insurance benefits enhances the likelihood that they will stay with the company.
  • When employees have access to a group health insurance plan, they are more likely to work more efficiently.

2. What are the things to keep in mind when buying health insurance for blue-collar workers?

The value and cost of group health insurance are determined by a variety of variables, including the size of the organisation, the average age of its employees, and the general health of the entire workforce. The overall health of your employees and the average age of your workforce should be taken into consideration when deciding on a group medical insurance plan.

3. What benefits should employers offer employees?

Employees typically expect health insurance for employees, vacation time, disability coverage, tuition reimbursement, and retirement savings plans from their employers.

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