Which legislation talks about it? There is no such law and an organisation cover employees retainers suppliers and even customers if they desire so It is the Companys policy affordability and Insurance Company's willingness to cover. That is all.
From India, Chennai
Agree with views of sivasankaran, its company's affordabilty but the retainers are Senior and served in companies for a long period are Retained after retirement for company expert professional advice.
From India, Hyderabad
Medimanage HealthInsurance Companies have allowed coverage of retainers/consultants under the employee group health insurance policy in the past. Though note, in the spirit of a group policy, there should be some homogeneity in the type of people covered.
Retainers are kind of dedicated/partly dedicated resources to the organization, similar to employees.
Covering Customers is something completely different from covering retainers. Insurance Companies could raise objections in such cases, due to lack of homogeneity in the group.
From India, Mumbai
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