Covid-19 pandemic has brought about new challenges for the insurance companies since last year as claims paid were higher than the premium sums collected from the policy holders, according to Mr Nilesh Sathe, Former Member Life, Insurance Regulatory and Development Authority (IRDAI).
He was speaking at a Webinar on Employee Benefits Insurance, Need – Myth – Reality – Strategy organized by PHD Chamber.
Mr Sathe felt that the insurance is more than a financial contract as it entails long term relationship between insurer and insured.
He observed that the gratuity, leave encashment and provident fund paid to employee on retirement or upon exiting the company are the statutory liabilities to the company and the company may face prosecution for default in payments.
Eminent speakers who also deliberated on the different aspects of Employee benefit Insurance included Mr Rakesh Kumar, Director, Management Development Centre, Life Insurance Corporation of India; Mr. Rishi Dua, Sr. Vice President, Axa France Vie India Reinsurance Branch; Mr Anil I Lobo, Senior Consultant, Retirement Trust & Employee Benefits; Mr Shailesh Kumar, Co-Founder & Insurance Head, Insurance Samadhan; Mr Ravi Sadarangani, Head Credit Life & Corporate Solutions-Group Business, Max Life Insurance Company Ltd and Mr Rakesh Sarin, Co-Founder & Managing Director, Wellness Mandala Pvt. Ltd.
Speakers at the Webinar observed that working from home has increased the efficiency of the employees by 17% as people are more comfortable at working from home scenario. Covid has also given new aspect of job security. The huge segment of MSME which face risk at every phase of their business are undervalued and underpenetrated so it is imperative for the MSME to value the risk associated with their business also related to health of their employees and mitigate them by taking group health insurance.
Mr. S K Sethi, Founder & CEO, Insurance Foundation of India, who moderated the session, said that employees are most important assets for any organization. The concept of perquisites now includes insurance in addition to other benefits. He felt that it is important to provide insurance cover to the employees to retain the right talent.
