Insurance

Meaning & Definition

Employee insurance is considered a financial security plan given to employees to protect them from uncertainties such as sickness, accidents, injury, and even death. Companies provide such insurance schemes, among other benefits, to their employees as an attempt to secure and take care of them financially.

Important Aspects of Insurance 

• Offers financial stability and health care services to its employees.
• Improves job satisfaction among employees.
• Facilitates talent acquisition and retention.
• Relieves employee stress during health emergencies.
• Contributes to employee welfare and well-being.

Applicable Regulations & Policies

Employee insurance schemes in India can be regulated under:

• The Employees’ State Insurance (ESI) Act, 1948
• The Employees’ Compensation Act, 1923 (for compensation in case of work-related injuries)

Alternatively, organizations can also offer group medical insurance and accidental cover schemes.