India’s Unicorns are not just creating new employment opportunities and contributing to the country’s economy but also raising the bar when it comes to providing health benefits to their employees.
According to a study by Plum, the median sum insured offered to employees by unicorns is Rs 5 lakh. In contrast, the median sum insured offered by startups is just Rs 3 lakh while most of the high-growth companies are offering only up to Rs 4 lakh median sum insured to their employees. However, most mature-stage companies are also offering up to Rs 5 lakh sum insured to their employees.
Unicorns are also offering better maternity benefits. The report says that 96% of unicorns are offering maternity benefits and the average maternity cover for normal deliveries is Rs 81,000.
In terms of holistic health benefits, 16% of unicorns in India are offering OPD coverage. In comparison, less than 2% of Indian companies are offering this benefit to their employees.
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Around 30% of unicorns are also providing comprehensive health benefits, including Health Insurance, Personal Accident and Disability Cover, Term Life Insurance, and Telehealth consultations.
Among the unicorns, SaaS companies are offering better health benefits to their employees than Fintech and E-commerce companies. The average sum insured offered by SaaS companies is Rs 7.3 lakh while the average sum insured offered by Fintech and E-commerce companies are Rs 5 lakh and Rs 4.7 lakh respectively.
Fifty per cent of SaaS companies are also offering OPD cover while only 25% of Fintech companies are offering this benefit. In the case of E-commerce companies, OPD cover is provided by none.
Plum’s report “The State of Employee Benefits 2023” is based on an evaluation of 2,500+ employer-sponsored health insurance plans across businesses of all sizes.
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The report found that most Indian employers are falling short of offering comprehensive benefits. Only 5% of Indian organisations offer comprehensive insurance coverage: Health Insurance (GMC) + Accident and Disability Insurance (GPA) + Term Life Insurance and comprehensive telehealth consultations (GTL
Over 53% of organisations offer a sum insured of less than INR 5 lakh, 43% offer a sum insured of INR 5–10 lakh, and only 3% offer a sum insured of INR 10 lakh or greater, the report said.
The report recommends that all companies, irrespective of the size, should offer a sum insured of Rs 5 lakh including cover for maternity and modern treatment of up to Rs 1 lakh.