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Why Are Group Health Insurance Plans Required for SMEs & Startups?

Posted on 29 August, 2022
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It costs a lot to afford the right medical attention during times of crisis. Prevention and cure of health issues appear even more daunting to sole breadwinners of big families. Thus, having a health insurance policy is often the only option to cover these expenses.

For instance, professionals working on construction sites, oil rigs, or ships are subjected to many risks in their day-to-day tasks. They power through knowing they have good health, property, and on-site accident insurance.

A Group Health Insurance Policy is also referred to as Group Mediclaim Policy or Group Medical Insurance. Provided by the employer, this policy covers the financial crunch caused due to the health issues of employees and their families.

Importance of Group Health Insurance for SMEs & Startup

Importance of Group Health Insurance in Small & Medium Enterprises (SMEs) and Startups

SMEs and Startups have been serving as the champions of our economy. Still, the lockdowns caused by the Covid pandemic brought them to their knees and put many almost out of business. One of the best ways for SMEs and Startups to emerge with their head held high at the end of this nightmare is to invest in Group Health Insurance for their employees.

Employees are now more aware of their vulnerability. They have seen how quickly basic necessities become costlier or unavailable during pandemics. It may seem that taking a Group Medical Insurance would increase your costs even further, but this is the optimal way to keep your employees more motivated than ever.

Knowing that their employer is taking care of the health issues of their families can be genuinely reassuring at such times. It is a sure fire way to retain valuable employees and earn their loyalty. However, the employer has other advantages if they choose to invest in Group Health Insurance.

Advantages of Investing in Group Health Insurance for SMEs and Startups

1. Tax Savings

As per the regulations by the Income Tax Department, Group Health Insurance is fully tax-deductible. SMEs and Startups can legally show 100% of the premium you pay as a business expense.

2. Low-Cost Premiums

Since Group Health Insurance covers all your employees, you get a bulk discount from the insurer. The alternative is reimbursing medical bills individually to each employer when they need it. That could be a costly affair. So, you may want to invest in a Group Health Insurance Policy to cut down drastically on costs:

3. Cover Unforeseen Medical Expenses

Every employee you hire has a dream of their own. Unexpected medical expenses often stand in their way of achieving those dreams. When you take a Group Health Insurance Policy, you ensure your employees give their best to the company. It is the only way to live life exactly how they want.

4. Flexible Premium Payment Options

Depending on the insurer, you can avail flexible premium paying frequency options. You may choose to pay the premiums monthly, quarterly, or yearly as per your convenience.

5. Garner Loyalty and Trust

The success of small business and startups are dependent on the people you incorporate into your team. It is paramount that your team senses that their employer cares about their health. Additionally, some Insurers will cover all of your employees irrespective of their age

Your business will stand tall when you have a team that trusts you and is loyal to the end.

What Are the Different Kinds of Group Medical Insurance Policies Available?

1. Group Medical Coverage

Also known as Group Mediclaim Policy, employees can offer this insurance plan to a group of employees. All the members of this group are entitled to similar benefits in the event of hospitalisation and other related expenses.

2. Group Personal Accident Policy

This Group Health Insurance Policy covers injuries, death, or disability caused by accidents. It is a great way to let the employees know that their employer cares for them and their families well-being.

3. Corona Protection

Let your employees know that you will take care of the medical expenses if they or their family members need hospitalisation due to the ongoing Covid crisis. It makes an enormous impact knowing that while the world is going through one of the most challenging times, their employer is shielding them from harm.


Group Medical Insurance policies are customised and designed as the SME or Startup’s specific requirements. So, the best way for any SME or Startup to protect its employees is by investing in Group Health Insurance.

ICICI Lombard’s Group Health Insurance product offers health coverage that suits employees of all business types, be it an SME, a startup, or a large organisation. ICICI Lombard provides Health Assistance Services, Wellness Programs, Tele Consultations with Physicians, and over 6500 Network Hospitals offering Cashless Settlement facilities.

It is vital to ensure that the backbone of any organisation, the employees, gets all the support during medical emergencies. It will boost their morale and increase loyalty to their employer.

  • Group Health Insurance
  • Product Code: 4016
  • Product UIN: ICIHLGP21381V05202

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This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). (Workman Compensation, 4010 , IRDAN115P0010V01200607)