A lot of people are aware of Group Health Insurance for employees, but many don’t know that ESI is also another option for providing a financial medical backup to people. However, there are stark difference between ESI and group insurance. We will discuss what these concepts entail and what is the best option for employee benefits. But before that there are few things that we must keep in mind before we dive in this battle of convenience or the difference between ESI and group insurance.
What does ESI mean?
The ESI or Employee State Insurance is broadly a medical reimbursement programme and administered and regulated by a social security and labour welfare organization known as ESIC. It is an autonomous and self-financing body who strictly run based on the rules and regulations dictated by the Indian ESI Act of 1948. ESIC functions under the Ministry of Labour and Employment, Government of India.
Who is eligible for ESI benefits?
Any employee who has a salary less than INR 15,000 may apply only if the employer is registered with ESIC and had been given a 17-digit ESI code post registration.
What is the contribution necessary to be made towards ESI benefits?
The employer pays 4.75% of the employee’s salary while the employee contributes 1.75% of their salary towards ESI.
What is Group Health Insurance?
Group health insurance protects a group of people from expenses related to any illness or medical issues. It also allows companies, banks, organizations, and housing societies to protect their entire staff, workforce, and members from medical expenses by procuring health insurance for them. What in group insurance may vary as the group insurance plan may have different variations customised to the requirements of a company’s budget.
What are the advantages of Group Health Insurance for employees?
Many large companies prefer corporate health insurance, which most likely includes group health insurance benefits for their employees as well. This is because:
- Group health insurance policy is cheaper per employee than individual health insurance plans
- Individual medicals and underwriting might be waved off; therefore, all employees mostly get covered
- Plans can be customized based on the organization’s needs and finances
- Some plans offer a wider range of employee healthcare benefits like discounted medicines, teleconsultations etc
ESI V/S Group Health Insurance: The Battle of Convenience?
As you can see from the above, there are stark differences difference between ESI and group insurance, and it might seem that group health insurance is winning but hold it right there. Also, what is covered under ESI does not discount the fact that even the employee has to make a contribution. What if there is something better than GHI? Read on to know more about Onsurity’s employee healthcare and wellness membership.
The Battle of Convenience: Employee Healthcare Benefits over just ESI and Group Healthcare Insurance
If you want to the advantages of Onsurity’s Employee Healthcare and Wellness membership, there are plenty. But for starters, some of the membership plans come with Group Health Insurance. With all the benefits of GHI. These memberships are loaded with other benefits for the employees including free and discounted doctor teleconsultations, discounts of online medicine orders and health check-ups and even offers on mental health and dental care. It not only covers regular healthcare but an employee’s overall wellness.
All of it is accessible in smart device app. As for the employer, the memberships are extremely affordable and are based on monthly subscription. There is even a digital dashboard at the employer’s end where he can manage onboarding and exiting members. Not only does it have obvious benefits, but it can help employers save up to 50% on employee benefits. If the employee/member wants greater Group health insurance benefits they can even upgrade their plan through personal purchase. For more details, click here.