Health Insurance - Is it mandatory to provide health insurance coverage to the employees in a pvt. ltd. company?

Hi,

Is it mandatory to provide health insurance coverage to the employees in a private limited company? We have already provided ESI coverage to the employees whose salary is up to 21000.

Thanks

It is not mandatory for the employees whose salary is more than 21000/-, but as a welfare measure, you need to provide it because, considering the situations in today's world, health insurance has become a basic need for the employee and their family, especially with this pandemic.

Finally, if it's not possible for you to provide it, then proceed with collecting a premium amount from the employee, as these policies provide coverage from day one.

Before sharing some insurance companies' contacts, please understand the fact that the following group policies are a must for any organization:

1. Group Mediclaim policy
2. Group Personal Accident policy
3. WC Policy or Employee compensation policy

WC Policy is compulsory for any organization where ESIC is not applicable. The other two policies are optional but essential for any company in case of any eventualities involving employees and their family members. Group Mediclaim policy can be expensive, but it can enhance the company's name and brand in the job market for retaining a talented workforce within the company. GPA Policy is not expensive, and premiums are low when opting for Public sector Insurance companies, which can compensate for any accidents that may occur during the course of employment.

GMC Policy is not mandatory, but it can improve the morale of the company in the Industrial market.

Regarding GST, although I am not an expert, based on the feedback from our accounts department, GST on Mediclaim policy cannot be adjusted as GMC policy is not a statutory one. You can adjust GST payment on WC Policy, which is statutory under the law and applicable to organizations where ESIC is not in place.