Mandatory Medical Insurance for Employees in India After COVID-19

It feels like just yesterday that COVID-19 transformed our world and our personal lives.  

Since then, we've all adapted the way we live, and adjustments have been made to worker benefits in the corporate world in response to the pandemic's impact. 

In India, for example, workers are now entitled to medical coverage from their employers across industries.

This mandate, issued by the Indian government and outlined by the Ministry of Home Affairs (MHA), took effect on April 15th, 2020.  The following information is a breakdown of how this mandate impacts TCWGlobal clients and workers.

How Does This Affect TCWGlobal’s clients? 

At the time of onboarding, our clients must select the insurance level they wish to offer their workers. This process occurs during the initial stage of onboarding and includes quote approval.  Once the insurance level is picked and costs are approved by our clients, TCWGlobal can proceed with onboarding.

How Does This Affect Workers?

During onboarding, workers will provide any needed documentation and information for enrollment. 

They will receive medical insurance benefits and applicable policies, along with their employment contract in a separate document. This is mentioned briefly in their employment contracts, as well.  

How Does TCWGlobal Come into Play Regarding This India Benefit? 

TCWGlobal supports both clients and workers throughout the process. We provide clients with various insurance options to choose the best fit for their needs. Once a selection is made, we will inform workers on our end and let them know to expect communication from the insurance company. 

Important Information to Consider:

• The cost of insurance—regardless of the level chosen by the client—will primarily depend on the worker’s age, which is considered personal protected information. Since we cannot request this information directly, our partner insurance company in India will handle communication with workers for the enrollment process.
  
  
• Please know this is a one-time annual cost, typically charged in August during the renewal period. If a worker is terminated before the year ends, the insurance is still paid for the full year.
  
  
• Workers can opt to cover additional dependents at their own expense. Alternatively, clients can choose to cover the cost of dependents as part of their benefits package.

Note: Please note that India offers a cost-effective solution for onboarding and employing workers. While there may be additional costs for this medical insurance benefit, TCWGlobal’s markup percentage in India is generally lower than in other countries.

At TCWGlobal, we understand the complexities of complying with government regulations while prioritizing worker satisfaction. We are committed to helping you manage the mandatory health insurance requirements.