Employer-Sponsored Mediclaim Plans (ESMPs) – Meaning and Advantages of ESMPs


5 min read

What’s Inside

Employer-Sponsored Mediclaim Plans (ESMPs) – Know Everything

The health and well-being of the employee is one of the prime concerns of an employer. In tune with this consideration, most businesses offer group health insurance or Employer-Sponsored Mediclaim Plans to their employees as a privilege for their service to the company. This blog talks all about these plans and the benefits they provide to both the employee and the employer.

Health insurance is one of the most vital insurance plans to buy for every individual. Illness comes unannounced and so it is always better to be prepared for it well in advance. Keeping in line with this thought, a number of companies in India provide the exclusive benefit of group health insurance to their employees. This mediclaim plan covers the healthcare costs for the employee in case of any medical treatment required during the course of their service in the company.

PayBima's Khushi Ka Tohfa

Meaning of Employer-Sponsored Mediclaim Plan (ESMPs)

An ESMP is essentially a health insurance plan benefit that most employers offer to their employees as well as their dependent family members, including dependent parents, spouse, and young children.

While the employer chooses a specific mediclaim plan for his/her employees, the premium payable on these policies is shared between the two parties. Most companies encourage their employees to avail the ESMP benefit because of the tax benefits it offers. The employee’s share of the premium, for instance, can be paid prior to tax calculation, which would reduce the burden of state and federal taxes for the employee.

Is it Mandatory for the Employer to Provide a Mediclaim Plan in India?

The pandemic has taught the world the importance of health and securing it financially for the future. Hence, as per the latest health advisory issued by the Government of India, all employers who resume work post COVID-19 in India are required to issue a mediclaim policy to all their employees. This is mandated for all small and large business organizations.

ESMPs may have been mandated by the government in the country, however, they actually offer several advantages to both employers and employees, which make them favorable in the eyes of the organization. Let’s look at some of these below.

Benefits of Employer-Sponsored Mediclaim Plans (ESMPs) for Employees

It helps the employee to get a mediclaim plan for family sponsored by the employer. This helps the employee to take care of the financial expenses for treatment of their family members when the need arises. Here are some top benefits of ESMPs for employees:

Helps reduce financial stress:

By providing the option of availing a sponsored mediclaim plan for parents, companies can help lower the financial burden on the employee.

Makes high-quality treatment affordable:

In the absence of an ESMP, the employee would have to shell out a large amount of money for covering the healthcare costs of their family members. With the help of a mediclaim plan, they need not worry about it. They can also go for the best treatment option available.

Takes care of treatment of chronic illnesses:

Chronic diseases such as mental health issues, cancer, heart disease, and the like, often involve long and expensive treatments. With the availability of ESMPs, these chronic health conditions can be treated without worrying about the financial strain they would put on the family.

Boosts the employee’s morale: An ESMP offers a huge incentive to the employee to work for the company by serving as an excellent reward for their service.

Benefits of ESMPs for Employers

These plans are equally beneficial to the employer as well. Here are some reasons why:

Better incentive results in higher productivity:

When employees are rewarded with employer-sponsored mediclaim benefits, they too work with all their vigor and this often results in a highly productive workforce for the company.

Tax benefits:

The premium payable for ESMPs enjoys tax benefits in the form of deductions for the company in the annual tax filing.

Whom is an ESMP Ideal For?

The Employer-Sponsored Mediclaim Plans are specifically designed for the employees of an organization to help them cover the healthcare costs of their dependents. This is why these plans are ideal to choose if you have to support expenses for senior citizens in the family or young kids. Cashless mediclaim plans work best in case of emergency hospitalization required for old parents or any other member in the family.

Besides this, there is also the option of mediclaim plans for pregnancy covered under employer-sponsored health insurance. This facility allows the employee to provide for all maternity and childbirth-related costs of their spouse during pregnancy. This can considerably help relieve the financial burden on the parents-to-be at this time.

To Conclude

Health insurance is no longer a luxury but an absolute necessity for a person of any age group. This is because life is very unpredictable and illness can come unannounced to anyone, anytime, anywhere. This is why it only helps to be prepared for any medical contingencies. This is where mediclaim plans in India can come to your rescue.

To further encourage every person in the country to buy health insurance not just for themselves but for their family as well, most companies today offer the privilege of ESMPs, which are group health insurance plans for the dependent family of their employees. These plans have several advantages, as detailed in the above sections, for both the employee and the employer.

If you too are a company looking to buy the best mediclaim plan for family in India for your employees, do look through online to check out your options. You can look for the best mediclaim plan for senior citizens or the best mediclaim plan in India for spouse and kids, as per your individual requirements.

Paybima offers a host of options for the cheapest mediclaim plan for the benefit of your employees, offering better coverage at low costs. Visit the website for more details and make an informed choice for the well-being of your family.

Also read:

Found this post informational?

Browse Mahindra Paybima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit Mahindra Paybima to Buy Insurance Online.

Also, Check out the Mahindra Paybima Guide and Glossary section –

FAQs: Employer-Sponsored Mediclaim Plans (ESMPs)

What is employer sponsored health insurance?

Employees and their dependents (and, in most cases, spouses) are provided with health insurance through employer-sponsored health plans as a perk of employment.

What does employee mediclaim policy cover?

The policy covers reasonable and customary hospitalization costs for in-patient care (allopathic, Ayurvedic, and homeopathic) or day care expenses incurred for the treatment of an illness contracted or injury sustained during the policy period.

What is employer employee insurance scheme?

Employer-employee insurance programs are typically included in group plans that insurers provide to businesses and entrepreneurs in order to assist them in protecting the financial future of their employees in the event of an unfortunate event.

What are the benefits of employee insurance?

It offers health and life insurance to its employees in the event of unexpected medical or other emergencies. Such initiatives not only assist employees in unfortunate situations, but they also assist employers in retaining current staff and luring new hires to their respective companies.

Other Motor Insurance Products



View this post on Instagram


A post shared by paybima (@paybima)

Sep 06, 2022
Author Bio
Author Image

PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Find your suitable insurance plan

Speak to our advisor

Latest Posts

Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back