Top 4 Benefits of Providing Insurance Coverage for Frontline Blue-Collar Workforce

The pandemic rages on across India. Yet, frontline workers are turning up at work, risking their health to sustain livelihoods and keep businesses afloat. With the rise in the consumer economy and digital platforms, the number of gig workers is also rising.

India’s blue-collar and grey-collar job markets witnessed their strongest 12-month growth in February 2022. With the high demand for frontline workers in various industries, the employees have no dearth of options; with these options come higher expectations.

Now more than ever, workers today demand job and health security, and flexibility when it comes to their work environment. By providing them with comprehensive insurance coverage, companies stand to gain in terms of increased retention, and job satisfaction.

Let’s explore some other benefits of providing employee insurance coverage as well.

1. Promoting Health Equity for Enhanced Productivity

The income of blue-collar workers is insufficient to access top-notch, high-cost healthcare facilities. Workers who are often exposed to hazardous working environments like dust, chemicals, fire, dangerous machinery, etc, are prone to diseases and injuries.

Health insurance coverage is essential to provide them with access to proper treatment, both mental and physical. Over the long-term, it results in increased employee wellness, contributing to less absenteeism and more productivity.

2. Reducing Company Liability

Insurance policies like workmen’s compensation are not only mandated by law but important for companies to avoid higher cost burdens and lawsuits. It will cover any liability caused due to disability, injury, or death of an employee on job premises. The amount rewarded can help workers to support their families, due to loss of income.

3. Tax Benefits for Companies

The premium paid by the companies towards employee benefits coverage becomes a business expense. This is shown in the P/L account and is eligible for tax benefits known as ‘employer entitlement’ according to the Insurance Regulatory and Development Authority Act, 1999.

4. Encourages Job Satisfaction and Employee Loyalty

Rarely are blue-collar workers given social security benefits. If companies financially secure their families with life insurance and health insurance, they feel valued. This encourages them to put in their best in their work.

Today, companies have the opportunity to offer customised insurance packages to their workers. They can provide full insurance coverage to include family members, provide telemedicine services, medicines on discounts, specific add-ons, and more to drive employee satisfaction.

New Wave of Reforms

India is ushering in a new wave of labour reforms, by implementing the 4 labour codes to cover 38 crore workers in the informal sector. The 2020 social security code brings gig workers under social benefits schemes.

These workers will be brought under the Employee State Insurance Scheme (ESIC). Medical insurance coverage will be available to all low-income workers not covered in the ESIC Act 1948. This is a new era for India Inc., where workers will be focused to drive economic recovery.

By providing proper insurance benefits to employees, companies stand to project themselves as ethical and inclusive brands, something which the young consumers highly value. Thus, apart from a legal necessity, insurance benefits for workers can help companies enhance brand image too.

But, how do companies offer insurance benefits to a distributed and evolving workforce?

Betterplace offers companies a full-stack, end-to-end tech solution for insurance-centric requirements, from policy distribution to claims assistance. Companies can offer customised packages, and track detailed reports on policy usage, cost containment, and ROI related to the benefits program.

Every aspect of the policy process, right from onboarding to documentation, and information is possible from a single platform integrated into company systems. This reduces overheads and offers a completely digitised employee experience.