Is Corporate Medical Insurance Expensive For an Employer?
In Dubai, the government has made medical insurance compulsory for all organizations with employees, whether the organizations are mainland or free zone based. And there is a very important reason for this.
Dubai’s mission and vision are to have a world-class healthcare system that provides quality and access to care. It wants everyone in Dubai to have access to medical treatments that they need and the means to pay for their basic medical needs.
Keeping this in mind, corporate medical insurance came into the picture. But, many organizations, especially startups and SMEs, aren’t comfortable with the corporate medical insurance policy because it adds a cost to their organizations. But, in Dubai, this isn’t possible. No matter what the size of the company is, it has to provide medical insurance to its employees.
Corporate medical Insurance: Expensive or not?
Corporate medical insurance gives peace of mind to your employees. They know that there won’t be any financial issues in case of any health emergency. Corporate medical insurance will recover the dark phase of their lives if it comes, unfortunately. Most importantly, they don’t have the burden of paying premiums, meaning they get financial help without paying anything in return. Employees’ satisfaction and loyalty levels at the company increase dramatically if they have access to good corporate medical insurance for them. And we know that satisfied employees deliver the best, which would work in your company’s favor.
Discussing specifically the cost – as corporate medical insurance is a group policy, the premium is relatively low compared to the cost of employees individually buying medical policies. And because the cost of individual insurance is high, most employees don’t invest in the same. When employees fall sick and are unable to get the right treatment in a timely manner, ultimately the corporate bears the cost of the same – in terms of lost productivity, low morale and thereby increased indirect expenses.
So yes, medical insurance premiums can be a burden on the business cash flows but over the course of the insurance policy, it pays back to the corporate many folds.
How to keep the cost of corporate medical insurance under control
Getting corporate medical insurance for your employees is a bit of a complicated process, especially keeping the right balance between the cost and benefits of the insurance policy. The best way to keep the cost under control is by hiring a reliable insurance broker. New Age Insurance Brokers can guide on not only selecting the right medical insurance policy for your corporate but also guide you and your team on how to keep the claims low so that at the time of policy renewal, you are not paying a significantly higher premium to due to last year claims.
We have years of experience serving companies of all sizes and relationships with all the leading insurance companies in the region. And we will bring to bear that experience so that you can focus on other aspects of growing your business.