Employers in India are now encouraging staff to pay a proportion of the premium for their parents’ insurance coverage. A new research report by Marsh India said that in 2010, about 51 percent companies covered employees’ parents completely, which has gone down to 35 percent companies in 2016.
According to Marsh India’s annual Employee Health and Benefit Survey, 92 percent employees said that they are willing to share premium costs and buy voluntary insurance plans offered by their employers. Further, 33 percent said that they are willing to spend 1-1 percent and another 37 percent willing to spend 3-5 percent of their annual salaries on various voluntary insurance plans.
Sanjay Kedia, Country Head and CEO, Marsh India said that the employer is now the one-stop shop for all insurance needs. “Since the employer is able to negotiate with the insurance and/or broker for better rates, even other products like motor insurance and travel insurance are now being sought by employees from their company,” he added.
The survey said that majority of the employees are keen to invest in top-up, outpatient department and parents insurance plan to minimise their out of pocket expenses. Also, 83 percent are looking for options to customise the insurance offered by employer such as increasing room rent, maternity limits.
The average sum assured offered in medical insurance by employers has also increased for the first time in five years. It now stands at Rs 3.5 lakh compared to Rs 3 lakh. Also, the room rent limit has also gone up to Rs 4000 from Rs 3000.
The survey showed that reducing financial concerns of employees, out-of-pocket expenses, and addressing chronic medical condition are the three most important employers’ objectives.
Employers are also crafting structured programs to address changing their changing needs and that of their employees. The priority is to maintain costs in line with their budgets, followed by benefit enhancements and choice based plans.
About 70 percent of the employee respondents said they review their company provided insurance coverage at least once a year. Five of 10 employees said they experienced or are apprehensive of the higher risk due to the prevalence of chronic conditions in the family, their lifestyle, the increased risk of injuries, and long-term problems, given hectic and erratic work schedules.
The survey had 500 employers and 2029 employees participating in it. Among employees, 56 percent are millennials, 39 percent are Gen X and remaining 5 percent are baby boomers.