Group health insurance is becoming extremely popular with many Indian SMEs. The reason is, while the world is scrambling amidst the pandemic, millions of employees have one question on their minds — What’s the best type of health insurance for me?”

According to a recent survey, around 60% of employees expect their employers to provide medical insurance. 

The government, ever since COVID-19, has made it mandatory for all employers resuming workplace normalcy, to offer health insurance to their employees. 

Many entrepreneurs and HR leaders wonder if it would be better to just let their employees buy their own insurance and then reimburse the cost, or go for a group insurance policy.

If you’re a business owner and you still haven’t made up your mind about what would be right for your employees, let’s figure it out. 

What is group health insurance?

Group health insurance is one that covers all the members of a particular group, in this case, employees of an organisation. 

Under a group insurance policy, members get insurance cover at a reduced price as the provider’s risk is spread across a larger group of policyholders. This scheme covers the financial distress of employees against unexpected health issues, accidents, or any mishaps. 

Group health insurance works under specified terms and conditions that apply to the entire group of insured people. It also offers the option to include spouses, parents and children in the group health insurance schemes. 

What are the advantages of group insurance?

Lower premium

One of the immediate benefits of opting for group health insurance for your employees is that the premium rates are much lower than a personal or retail insurance policy. 

Individual health insurance policies get costlier as the insured gets older. Group health insurance, on the other hand, caters to employees of all ages without the stress of the policy getting exponentially expensive. 

Wider coverage

Group health insurance covers pre-existing medical ailments, and maternity. So, employees who might not be eligible for an individual insurance policy can also enjoy the benefits of medical insurance. 

Individual health insurance policies require medical underwriting. Under this process, the applicant is evaluated on the basis of their medical history before the issuance of a policy.  But, group health insurance policies are not dependent on medical underwriting rather are dependent on pre-underwritten rules.

The employees’ health is insured from the very first day of buying insurance.

Faster processing

Getting individual health insurance takes up to 6-8 weeks apart from the waiting time, from the start of the application process until the policy gets approved and finalised. 

Group Health Insurances on the other hand don’t take as long since there is no medical underwriting and approvals process to go through.

No waiting period

Individual insurance plans often have a waiting period of 2 to 4 years for treating common illnesses, even if they are not pre-existing. On top of the waiting period, there is also an additional 30 day waiting period upon receiving the plan.

This means, your individual health insurance cannot be used for the 30 days unless there is an accidental case. 

Group health insurance on the other hand, can be used from day 1 for pre-existing conditions, maternity, and more. 

Happier workplace

When you offer insurance to your employees, there is a positive change in the workplace environment. Insured employees know that they can count on you during times of distress. They feel valued and appreciated, which in turn, motivates them to work for the better interests of the company. 

Being healthy has a lot of perks, both on and off the job. And, healthy employees are an asset to any business. Your employees will take fewer sick days, see the doctor for regular check-ups, and be open and upfront with you about any health problems.

Why RazorpayX Payroll is the best of payroll and insurance

As an employer, knowing what benefits suit your employees can ensure loyalty. Although the application for a group policy can seem tedious, RazorpayX Payroll has you covered. RazorpayX Payroll is an automated payroll software that gets you through your payroll process with ease. 

To help your payroll/HR team reduce their operational efforts and bring a holistic employer and employee experience, along with payroll, RazorpayX Payroll now offers best-in-class group health insurance. 

RazorpayX Payroll has partnered with a leading employee Insurance company to provide a comprehensive and affordable group health insurance for companies as small as 2 employees. 

With all the employee information on RazorpayX Payroll, employee data management for Insurance is a breeze since all employee additions, exits, and updates are synced directly without any extra effort required.

This is why RazorpayX Payroll is the best one-click payroll and insurance solution for your business.


Harshitha is a marketer at the future-forward RazorpayX. She has an insatiable love for travel and culture, rock music, and the work of Neil Gaiman.

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