4 Types of Insurance for Frontline Workers

The issue of wages in India is a complicated and controversial one. There are many pressing concerns when it comes to securing the minimum rate of wages in the competitive market.

The Code on Wages 2019 that offers a universal minimum wage and floor wage across jobs in unorganised and organised sectors is yet to come into force. The centrally sponsored rural job guarantee scheme, MGNREGS pays wages below the statutory minimum. As of April 2022, inflation is at record-high levels, due to geopolitical pressures.

What is being conveyed here is that frontline workers don’t earn enough to be able to invest in their future needs. They don’t have monetary resources to deal with sudden illnesses, accidents, or in the worst case, loss of income.

Employers need to offer various types of insurance for frontline workers to ensure greater productivity and higher retention. With the high demand for frontline workers, comprehensive insurance can help companies attract talent too.

What types of insurance do frontline workers need?

Life Insurance

Employer-provided term-life insurance will offer financial protection to the workers’ families, should they meet with an untimely death. The sum assured is paid out to the nominee of the worker, upon their demise.

This can ease some of the financial worries of the survivors. It eases some of the mental stress borne by low-income workers with respect to assuring safety for their families. They remain engaged with the companies and assure loyalty.

Health Insurance

Health insurance for frontline workers helps them to work in a stress-free manner in a pandemic environment. In the age of rising medical costs, most workers are unable to afford proper treatment for many diseases including Covid-19.

Some of these diseases are often consequences of prolonged exposure to occupational hazards like chemicals, dust, and more. Health insurance is essential for workers to remove the financial burden on their families, should they fall ill.

The policy can cover the costs of hospitalisations, diagnostic tests, medicines, ICU charges, ambulance, and more.

In the end, the employer can have a healthy workforce, with less absenteeism and increased productivity.

Accidental Coverage

Many blue-collar workers face immense challenges and risks every day at work. Workers in manufacturing facilities deal with sophisticated machinery. They are prone to injuries.

In the online delivery space, companies are promising 10 to 20 minutes delivery speeds for most items. Even though last-mile hubs have reduced the travelling distance to the customer, these workers are under a lot of pressure to deliver and maximise income.

Accidents can be common. Frontline workers need adequate insurance coverage. Accidental insurance coverage can help workers get treatment, as well as deal with the loss of income while they are temporarily disabled.

Workmen’s Compensation Policy

This type of insurance for frontline workers is mandatory for companies mentioned in the Workmen’s Compensation Act 1923. It ensures workers are compensated for injuries sustained on the job. The pay-out is given in case of employee death, temporary disability, permanent partial disability, and permanent total disability.

This is necessary for businesses that have high exposure to health and life hazards. It also protects companies from having to bear extreme losses in lawsuits.

Betterplace is an end-to-end tech solution, which lets companies customise all the above policies and satisfy a diverse workforce. Right from employee registration, to claims processing, the platform makes it easier for companies to ensure the right practises without increasing overheads.

Businesses are also able to access critical data related to insurance usage, ROI, and cost benefits. No matter what type of insurance companies provide, Betterplace offers 24/7 digital claims support for frontline workers to help them during critical times.