According to a survey, around 60% employees expect their employers to provide health insurance. Unfortunately, small businesses & startups in India struggle to offer health insurance due to low employee count. 

Majority of insurance providers offer group medical cover to large enterprises as the risk of insurance is spread among a larger group of people. 

If small businesses wanted to provide medical cover to their employees, they would have to buy individual insurance cover for employees. This makes health insurance an expensive affair and might impact business profitability. 

With RazorpayX Payroll, we are thrilled to introduce Group Health Insurance for small businesses and startups. 

We have enabled Health Insurance to help businesses build a sense of security among employees and keep them motivated towards organisational goals. 

Group Health Insurance without RazorpayX 

Here are the factors that deter small businesses from providing health insurance to their employees. 

Organisation size

According to the IRDA guidelines, insurance companies must provide group health insurance to a minimum of 7 employees or 20 members of a group. 

Because of such limitations, it becomes difficult for smaller organisations to procure health insurance from affordable insurance providers in the market.  

Standard policies and rates

Some insurance providers offer group health insurance policies to small businesses, but with limited customisations. Customisations generally include maternity benefits, waive-off periods for pre-existing ailments, etc. 

Insurance premiums are generally higher since the risk of insurance is spread across a smaller group of people. 

Low intent of providing insurance

Small businesses generally have low intent of providing group insurance to employees. According to a 2017 report by KPMG and FICCI, the penetration of health insurance amongst the MSME sector is 24% for micro (0 – 40 employees), 33% for small enterprises (40 – 100 employees), and 64% for mid-sized enterprises (100 -250 employees).

Since the Indian government has made it mandatory for all employers to provide health insurance to their employees, small businesses are having a hard time providing a suitable health cover.  

Group Health Insurance with RazorpayX 

RazorpayX Payroll is a software built for small businesses and startups. It takes care of end-to-end payroll processing, right from employee onboarding to automating compliance payments & return filings. 

We at RazorpayX, strive to simplify the payroll process for businesses – be it salary disbursals, compliance payments or providing health coverage. 

So, we have enabled health insurance to provide comprehensive and customised policies at economical premiums, in partnership with Plum and ICICI Lombard, for small businesses and startups. 

We understand that many insurance providers do not offer group coverage to small businesses, RazorpayX health insurance caters to businesses’ insurance needs even with an employee count of just 2. 

Here are the benefits that businesses will enjoy with RazorpayX Payroll.

  • Automated insurance management upon employee onboarding and exit
  • Pre-existing conditions, maternity and newborn coverage from day 1 
  • No waiting period for employees. They can use the health cover from day 1
  • Cashless claims available at over 6,500+ hospitals across India
  • 24*7 support via phone, chat, and email for employee queries and claim 

Businesses can compare different insurance plans to select the most suitable one for their employees with RazorpayX insurance. Also, they can automate the insurance process with RazorpayX for every employee during onboarding and exit. 

So, hurry up! Execute your payroll with RazorpayX now and get access to best in class group medical cover for your employees. 

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A Writer by Chance. Finance Wizard. If not working, you can find me binge-watching F.R.I.E.N.D.S!

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