![Cardiovascular diseases accounted for the most claims, followed by cancer, injuries, childbirth and related complications. (Representative image) Cardiovascular diseases accounted for the most claims, followed by cancer, injuries, childbirth and related complications. (Representative image)](https://images.news18.com/ibnlive/uploads/2021/07/1627283897_news18_logo-1200x800.jpg?impolicy=website&width=510&height=383)
Cardiovascular diseases accounted for the most claims, followed by cancer, injuries, childbirth and related complications. (Representative image)
In terms of claims too, Bengaluru has an average claim size of Rs 73,000, Delhi has an average claim size of Rs 62,375 and Mumbai has the highest average claim size of Rs 92,796.
Companies of all sizes in Bengaluru are leading the way in providing employee benefits, with 70% offering a policy amount of Rs 5L or more and over 72% offering maternity benefits. This compares to companies in Delhi, where 68% offer sums of Rs 5L or more and 63% offer maternity benefits.
As per data released by Plum in its flagship report, State of Employee Benefits 2024, only 60% of companies offer a sum insured above 5L, followed by Mumbai where 62% offer maternity benefits.
Also Read: Who says you can't have it all? Indian companies increase employee health benefits despite rising costs
In terms of claims too, Bengaluru has an average claim size of Rs 73,000, Delhi has an average claim size of Rs 62,375 and Mumbai has the highest average claim size of Rs 92,796. This directly supports the following costs of living:
- Bengaluru – Rs 1,29, 564 (for a family of four, excluding rent)
- Mumbai – Rs 1,10,233 (for a family of four)
- Delhi – Rs 1,12,000 (for a family of four)
Therefore, it is interesting to note that financial services, IT services and consulting companies, SaaS companies and software development companies can benefit the most. While the healthcare and real estate sectors lag behind, companies in the manufacturing sector remain at average levels.
Medical expenses are increasing
According to the report, cardiovascular disease received the most claims, followed by cancer, injuries, childbirth and related complications. Delhi in particular has higher rates of respiratory diseases, with Bengaluru and Mumbai having the highest rates of cardiovascular diseases, according to data from the National Health Profile 2022.
“Lifestyle diseases and healthcare costs are on the rise,” said Abhishek Poddar, co-founder and CEO of Plum. Depending on the city, medical costs can rise two to three times even for common illnesses. “Concerned companies should also keep cost of living, healthcare and salary ranges in mind when designing sustainable benefits, which will go a long way in creating employee peace of mind.”
Indian households spent over Rs 120 million on healthcare-related expenditure as of November 2022, according to data from the Center for Monitoring the Indian Economy Consumer Pyramid Household Survey (CMIE-CPHS). Here, Indian urban areas accounted for 42.3% and 57.7% of the expenditure. The report noted that they were from rural India.
As of FY 2022, the average Indian household spent Rs 3632 on medical expenses. According to data compiled by the World Bank, nearly 55% of all spending on healthcare in India is out-of-pocket. This is surprising, given that a single major medical emergency can bankrupt a family.
What can businesses do?
Saurabh Arora, co-founder and CTO of Plum, said: “Difficult market conditions shouldn’t stop caring companies from offering tailored benefits. We have worked with our clients to create sustainable policies that benefit both employers and employees. “We are seeing a 110% increase in first-time purchasers of group health insurance investing in a primary health care plan for their employees.”
Additionally, the latest benefits being adopted by the top 10% of companies include telehealth (including mental health support), OPD, and flexible benefits that personalize employees' healthcare experience.
Keeping up with the times, IRDAI is making the insurance more comprehensive by including modern treatments as part of the insurance coverage. Examples include balloon angioplasty, robotic surgery, oral chemotherapy, and stem cell therapy. 90% of these treatments cost more than Rs 1,00,000.
While it is important to recognize the needs of employees across cities, it is also important to keep cost of living, CTC, and healthcare costs in mind while devising sustainable policies.
But the trends (citywide) are encouraging. Average insurance coverage increased by 66%, preventative care utilization increased by 110%, adoption of flexible benefits doubled, and the number of companies offering maternity benefits increased by 15%.
that much Employee welfare status Plum's Annual Benefits Report Card compiles over 4500 policies to gain insight into how companies (2 to 5000+ employees) design and define their benefits plans.