Can A Company Decide Not To Provide Medical Insurance To Employees

Dear Fellow Colleagues,

I would like to understand if a private limited employer in India is bound by law to provide medical benefits/health insurance or not. Here are the additional pointers:

- If NO - what are the legal circumstances under which it can be so?
- Is there a business risk/risk of litigation from employees if no health benefits are provided?

Please note that I am not talking about ESI. I am considering implications of providing healthcare coverage/or not. Your considered opinion is awaited.

Warm Regards,
Santosh

Hi,

There is no law or any legal entitlement for the employer to bear the medical expenses of their employees who are not covered under ESI. However, most companies offer a medical policy (corporate) for their employees, which may be fully, partially, or non-subsidized by the employer. If an employer does not provide any medical assistance, they can still choose to help their employees on a humanitarian basis.