Hi Friends,
I have one confusion. As per my understanding, medical insurance is compulsory, or I must say every employer is supposed to provide medical insurance to all their employees (as per law). Please correct me?
Regards,
Rupendra Mehta
From India, New Delhi
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I have one confusion. As per my understanding, medical insurance is compulsory, or I must say every employer is supposed to provide medical insurance to all their employees (as per law). Please correct me?
Regards,
Rupendra Mehta
From India, New Delhi
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Hi Rupendra,
That thank you was a mistake; I didn't intend to do it. For the same, the employer provides the ESI service, and medical is included in the CTC. Some MNCs do provide medical insurance as well.
Hope the above sorts your query.
Regards, AJ
From India, Thana
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98That thank you was a mistake; I didn't intend to do it. For the same, the employer provides the ESI service, and medical is included in the CTC. Some MNCs do provide medical insurance as well.
Hope the above sorts your query.
Regards, AJ
From India, Thana
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Dear Aj,
Thank you for your reply. I am aware that as per the ESI regulations, every employer is obligated to provide medical insurance, and some MNCs do offer it. However, my query is whether the employer is required to provide this insurance to employees or if it is at the employer's discretion. In other words, is there any specific law mandating this besides the ESI regulations?
Regards, Rupendra
From India, New Delhi
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Thank you for your reply. I am aware that as per the ESI regulations, every employer is obligated to provide medical insurance, and some MNCs do offer it. However, my query is whether the employer is required to provide this insurance to employees or if it is at the employer's discretion. In other words, is there any specific law mandating this besides the ESI regulations?
Regards, Rupendra
From India, New Delhi
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Hi Rupendra,
As far as my knowledge permits me to comment, the employer is not bound by any law to provide medical insurance other than ESI. However, in cases of health hazards caused by working in factories due to continuous exposure to chemicals, the company is liable to cover the entire medical cost.
Regards, AJ
From India, Thana
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As far as my knowledge permits me to comment, the employer is not bound by any law to provide medical insurance other than ESI. However, in cases of health hazards caused by working in factories due to continuous exposure to chemicals, the company is liable to cover the entire medical cost.
Regards, AJ
From India, Thana
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I have the same opinion that there is no law for compulsory medical insurance other ESI . but If somebody is injured while performing his duties he is covered under workmen compensation act.
From India, Lucknow
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From India, Lucknow
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Hello Friends,
Health insurance is healthcare provided by an employer. When a company provides health insurance benefits, they pay for all or part of the health insurance premiums for their employees. Employers are not required to provide health insurance coverage to employees. Health insurance is typically a matter of agreement between an employer and employees. By definition, health insurance coverage is an employee welfare benefit plan established or maintained by an employer or by an employee organization like a union, or both, that provides healthcare for participants and their dependents through insurance coverage or reimbursement.
Regards,
Jyoti
From India, Delhi
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Health insurance is healthcare provided by an employer. When a company provides health insurance benefits, they pay for all or part of the health insurance premiums for their employees. Employers are not required to provide health insurance coverage to employees. Health insurance is typically a matter of agreement between an employer and employees. By definition, health insurance coverage is an employee welfare benefit plan established or maintained by an employer or by an employee organization like a union, or both, that provides healthcare for participants and their dependents through insurance coverage or reimbursement.
Regards,
Jyoti
From India, Delhi
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Insurance for employees is not a compulsion for the employer. However, the scenario is changing quite fast, and a lot of companies are opting to insure their employees. Recently, the International CII Health Insurance Summit was held in Delhi, and the same was discussed.
Read the report for more insight on employee health insurance. Hopefully, things will improve further in the future.
From India, Mumbai
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Read the report for more insight on employee health insurance. Hopefully, things will improve further in the future.
From India, Mumbai
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Dear Health Insurance is not mandatory as of now. However, ESI, which is the health insurance provided by the Central Government, is mandatory for employees falling within a specific salary bracket. Medical insurance is provided as a welfare measure; otherwise, corporates would need to develop a scheme to reimburse the cost of treatment for major illnesses.
rajanassociates
From India, Bangalore
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rajanassociates
From India, Bangalore
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Health insurance is now being viewed more as an employee attraction and retention tool. With an increase in health insurance premiums over the past 3-4 years, many companies were seen as reducing benefits, especially towards coverage of parents. Much of employee benefits in insurance are now typically being driven from industry-specific practices (it is seen as a given in IT and ITES industries - providing relatively more liberal benefits, this in comparison to the Manufacturing sector), size of the company and its premium-paying capacity, any domestic or international employee benefit policies (especially applicable in MNCs), etc.
There was a recent observation by Mr. Montek Singh Ahluwalia suggesting that health insurance should be made mandatory for the organized sector, but it's a different matter to finally see it implemented. You should note that at the National Policy framing level, they see the uncomfortable truth with only about 2% of the population having any form of private commercial health insurance.
I will be glad to answer any further specific queries you may have on designing a health insurance policy, insurer selection, or administration of the program.
Regards,
Deepak
(Subject Matter Expert - Health Insurance)
deepak@hii.co.in
From India, New Delhi
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There was a recent observation by Mr. Montek Singh Ahluwalia suggesting that health insurance should be made mandatory for the organized sector, but it's a different matter to finally see it implemented. You should note that at the National Policy framing level, they see the uncomfortable truth with only about 2% of the population having any form of private commercial health insurance.
I will be glad to answer any further specific queries you may have on designing a health insurance policy, insurer selection, or administration of the program.
Regards,
Deepak
(Subject Matter Expert - Health Insurance)
deepak@hii.co.in
From India, New Delhi
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Dear All,
Hope you are all doing well. I still have a doubt. First of all, I would like to tell you about my company. It's a logistical back office. We have a big vision for the future. Currently, 10 members are working. The issue is that they are not availing any PF, ESI, or insurance benefits. As an HR professional, I would like to provide some benefits to my staff. Please suggest a better way, my friends. I just want to know, is insurance mandatory now? If it is mandatory, I would like to know under which act it was made.
Waiting for your auspicious reply.
Thanks,
John
From India, Karur
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Hope you are all doing well. I still have a doubt. First of all, I would like to tell you about my company. It's a logistical back office. We have a big vision for the future. Currently, 10 members are working. The issue is that they are not availing any PF, ESI, or insurance benefits. As an HR professional, I would like to provide some benefits to my staff. Please suggest a better way, my friends. I just want to know, is insurance mandatory now? If it is mandatory, I would like to know under which act it was made.
Waiting for your auspicious reply.
Thanks,
John
From India, Karur
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Good morning all,
My company is a software development company, and currently, we have a strength of 15 employees. We do not have any PF, ESI, or insurance, but as an HR professional, I would like to provide some benefits to our employees. Can anyone please suggest or advise me on group medical insurance, ESI, PF, or EPF?
Thanks in advance,
Soumya
From India, Mohali
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My company is a software development company, and currently, we have a strength of 15 employees. We do not have any PF, ESI, or insurance, but as an HR professional, I would like to provide some benefits to our employees. Can anyone please suggest or advise me on group medical insurance, ESI, PF, or EPF?
Thanks in advance,
Soumya
From India, Mohali
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Dear John & Sowmya,
You both have the same query. As you said your org is small and looking for expansion in the future, there are a few things which you need to do:
1) PF should be provided to all the employees. It should be visible on employees' salary slips, and your company should register it under the Companies Act, 1956. Your owners should check under which act they come. 12% will be the employees' contribution (to be deducted from the gross) and an equal amount from the employer as well (to be shown in the CTC).
2) ESI is important for all the employees who earn under 15,000 pm gross. 4.75% of the gross is the employer's contribution (to be shown in the CTC), and 1.75% of the gross is the employees' contribution (to be deducted from the gross).
Also, you need to check Gratuity because it is essential to provide to all the employees. Please refer to the Gratuity Act. Also, check the Minimum Wages of your State. All employees should receive it.
If you have any further queries, please ask.
Regards,
Shalini
From India, Bangalore
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You both have the same query. As you said your org is small and looking for expansion in the future, there are a few things which you need to do:
1) PF should be provided to all the employees. It should be visible on employees' salary slips, and your company should register it under the Companies Act, 1956. Your owners should check under which act they come. 12% will be the employees' contribution (to be deducted from the gross) and an equal amount from the employer as well (to be shown in the CTC).
2) ESI is important for all the employees who earn under 15,000 pm gross. 4.75% of the gross is the employer's contribution (to be shown in the CTC), and 1.75% of the gross is the employees' contribution (to be deducted from the gross).
Also, you need to check Gratuity because it is essential to provide to all the employees. Please refer to the Gratuity Act. Also, check the Minimum Wages of your State. All employees should receive it.
If you have any further queries, please ask.
Regards,
Shalini
From India, Bangalore
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Hi Rupendra,
Please be informed that the employer is not bound to provide medical insurance for the employees. However, if any accident or injury occurs with an employee on the office/factory premises, the employer is completely liable for their medical treatment.
Secondly, ESI is a compliance requirement that must be fulfilled according to the salary slab and the medical amount shown in the salary, up to 1250/- per month, for tax exemption.
Thanks
From India, Delhi
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Please be informed that the employer is not bound to provide medical insurance for the employees. However, if any accident or injury occurs with an employee on the office/factory premises, the employer is completely liable for their medical treatment.
Secondly, ESI is a compliance requirement that must be fulfilled according to the salary slab and the medical amount shown in the salary, up to 1250/- per month, for tax exemption.
Thanks
From India, Delhi
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Dear all,
Like John and Soumya, I am also facing the same situation. I am working as an Administrative Assistant in a newly built organization. Currently, we are only 5, and the hiring process will start soon.
I would like to inform you that we do not fall under the ESI Act based on the salaries paid to staff members. However, for the employees' benefit, we are planning to implement an insurance policy.
We do not provide a Medical Allowance to employees, nor is it mentioned in the salary slips. I have the following queries:
1) Can anyone suggest whether government insurance or private insurance is better? Can you recommend a good insurance company?
2) Can the employer deduct salary for sick leave, or is it considered paid leave?
3) Is it possible to provide a specific medical allowance every month to employees and have it mentioned in their salary slips instead of offering a health insurance facility?
4) If sick leave is considered paid leave, would there be no need for medical allowance and health insurance?
Thank you for your assistance in clarifying these questions.
Best regards,
[Your Name]
From India, New Delhi
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Like John and Soumya, I am also facing the same situation. I am working as an Administrative Assistant in a newly built organization. Currently, we are only 5, and the hiring process will start soon.
I would like to inform you that we do not fall under the ESI Act based on the salaries paid to staff members. However, for the employees' benefit, we are planning to implement an insurance policy.
We do not provide a Medical Allowance to employees, nor is it mentioned in the salary slips. I have the following queries:
1) Can anyone suggest whether government insurance or private insurance is better? Can you recommend a good insurance company?
2) Can the employer deduct salary for sick leave, or is it considered paid leave?
3) Is it possible to provide a specific medical allowance every month to employees and have it mentioned in their salary slips instead of offering a health insurance facility?
4) If sick leave is considered paid leave, would there be no need for medical allowance and health insurance?
Thank you for your assistance in clarifying these questions.
Best regards,
[Your Name]
From India, New Delhi
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Dear All,
I still have a doubt regarding E.S.I being applicable up to 1.8 Lac per annum (package) for employees, as per my knowledge. Therefore, companies are opting for medical insurance to cover health insurance for all. Is this the right approach? Kindly clarify. I hope seniors will provide me with their valuable suggestions on this matter.
Regards,
Sai Kumar
From India, Hyderabad
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I still have a doubt regarding E.S.I being applicable up to 1.8 Lac per annum (package) for employees, as per my knowledge. Therefore, companies are opting for medical insurance to cover health insurance for all. Is this the right approach? Kindly clarify. I hope seniors will provide me with their valuable suggestions on this matter.
Regards,
Sai Kumar
From India, Hyderabad
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Employee Benefits.doc