The present situation presented by the Coronavirus pandemic is unlike any other health emergency. For the first time, the economic activities in India have come to a grinding halt with employees forced to stay at home to stem the spread of the pandemic. While the lockdown has had a severe impact on all sections of the society, but one section has been rendered particularly vulnerable, i.e., the blue-collar workers. The government has called upon the employers to not lay-off any employees during this period, but with their source of income drying-up, employers can only bear the burden for so long.
As an employer, you must be worried about the welfare and well-being of your employees during emergencies like the coronavirus pandemic. What can make the present situation more complicated for any of your employees is a health emergency in the family? With their limited economic potential, your blue-collar employees might be distressed by the exorbitant hospitalization costs. This is where your role as their well-wisher comes to the fore. By enrolling your employees in a health insurance plan, you can offer them a much needed financial support that can come handy during the times of distress.
Health Insurance in India
You will be surprised to know that despite aggressive awareness campaigns by the government and insurance companies, India is still one of the most “underinsured” countries in the world. The health insurance penetration in India stood at a dismal 3.69 percent in 2017 as compared to the global average of 6.3%. The primary reason behind this development being lack of awareness amongst the people regarding the benefits of health insurance.
Your blue-collar employees are deprived of the benefits of health insurance due to their ignorance or reluctance to subscribe to an insurance policy, thinking that they will not fall sick. But the COVID-19 pandemic has shown that life-threatening ailments spare no one. By opting for a group health insurance policy for your blue-collar employees, not only can you provide them with much needed financial support but also enhance their productivity.
Benefits for the employer
Like several other employers, you might also be thinking that why should you add to your employment costs by signing up for a health insurance plan for your employees. Well, the benefits that you accrue from this investment, far outweighs the cost involved. Some of the noteworthy benefits that you can gain are: –
Low attrition rate
Research has shown that it costs you six times more to hire and train a new employee as compared to retaining an existing employee. With the looming problem of labor shortage, employers are struggling to keep their flock together. By offering a comprehensive health insurance plan to your employees, you can easily control the attrition rate. Your employees would prefer to stay with your company as the benefits of the health insurance policy are useful for their families as well.
When the emergency medical requirements of their family are being taken care of, your employees will be able to focus on their job better. This will not only improve the quality of your products and services but also enhance the productivity of the employees. They will feel loyalty towards you as you are taking care of the needs of their family.
Many health insurance plans come with the option of free comprehensive medical check-up periodically. This facility will help in identifying any possible health issues that your employees are suffering from and allow them to receive the treatment on time. Better health is always going to increase their productivity.
Income Tax Benefits
The premium that you will be paying towards the health insurance policy of your employees can be claimed as a business expense. This will help reduce your income tax liability at the end of the financial year. So, you will avail dual benefits of fulfilling your duty towards your employees and also save on your taxation liabilities.
The benefits of subscribing to a health insurance plan for your employees are too good to be ignored. With multiple insurance plans available in the market, undertaking in-depth research and identifying a customized plan for blue-collar employees holds the key.