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Best Group Health Insurance Plans For Restaurants Startups In India

By January 8, 2022January 9th, 2022No Comments

The restaurant business in India is among the most profitable sectors in the current times. Even though Covid-19 has lowered the pace of the rising graph of the restaurant sector, it is performing better than expected. The new-age blend of technology with food has expanded the opportunities for food-based startups. Cloud-based kitchens, delivery partners, and small restaurants have increased in large numbers. Like other organizations, this professional sector has to follow certain norms and rules to continue doing business.

Need for group healthcare plan: 

Among many such norms, the inclusion of group healthcare policy as a service benefit has become compulsory for startups. From April 2020, it is mandatory for all startups and businesses, to provide Mediclaim support to their employees. The restaurant startup sector is also no exception. It is also the need of the hour as the restaurants cannot offer work from home facilities to all the employees (managers, chefs, waiters, delivery persons, etc.). 

Restaurant startups in India – A rising trend

Indians love their food and, thus, the professional prospects of the restaurant business have never faced a slowdown. The current times are all about startups with newer technological innovations and convenience ideas. The restaurant and food business are also following a similar trend. Technology in the food business was an alien concept before 2010. when people only had the option of dining out at a restaurant. With the arrival of big names in the business that promote restaurants and act as delivery partners, more investors are coming forward to open their startup restaurants.. 

Post pandemic, the food services of India are anticipated to reach their peak by 2025. The existing number of restaurants in India is increasing rapidly, with tech-based dining outlets opening in metro cities. In the financial year 22, the industry would reach about 4.7 trillion rupees, even after facing a setback with Covid and lockdown.** So, you can understand the scope of industry expansion and success. 

Startups are making the most of this rise, post covid and, thus, new names are popping in the market. The restaurant industry employs about 7.3 million people all across the nation, making it among the leading employment sectors in the country.** The numbers will rise more in the coming years. 

If you want to consider offering health insurance to your employees working in your restaurant business, you need to check out these health insurance basics

Group healthcare plan – A way to establish a steady ground

Startups face trouble in the initial years to create a workforce with able employees. A service benefit like group healthcare makes it easy. It is beneficial for the employees working in restaurants and is also an opportunity for employers to retain valuable resources. 

  • With group healthcare plans, restaurant owners and food-tech startups can retain employees.
  • Reduce the employee leaving rate by offering them service benefits that help them and their families.
  • Use it as an economical option to meet the needs of the employees during the initial years when you are struggling to establish a popular restaurant.

Features to note while selecting

For restaurant founders and startup owners, finding the right healthcare plan can be tough. With so many insurance companies and insurance plans available on the market, it can be confusing. Here are some characteristics of a group healthcare policy that will help retain the employees and help them financially with medical requirements. Give a read and, keep these pointers in mind to identify the best group healthcare plan among the many options, and suit the needs of the employees, who are a part of the restaurant. 

  1. Extensive plan coverage

The elementary purpose of buying or providing a group healthcare policy is to ensure treatment coverage. Whether a planned treatment or a sudden medical necessity, a Mediclaim helps the policyholder. The insurance company pays for the expenditure as per the mentioned coverage norms. The coverage rules are different with the different insurance companies. They also vary with the various insurance plans in the market. The best policy should offer maximum plan coverage to critical illnesses and other medical treatments. You should read the terms thoroughly to ensure extensive coverage. 

  1. Cashless and reimbursement facilities

Cashless facilities are currently common with every insurance plan in the market. Under this facility, the policyholder can get hospitalized and receive treatment without paying any money. They have to produce the policy documents to get admitted to the hospital for valid medical reasons. The hospital needs to be under the network of the cashless-facilitated list as provided by the insurance company. Go for insurance that offers swift cashless approval and easy processing for reimbursement. Check whether they offer e-claim for reimbursement and settlements, to make it more convenient for your employers. 

  1. Easy claims and efficient management

Restaurant employees have to work in different shifts as restaurants have long working hours. Thus, the employees need to have insurance which makes their needs convenient. Efficient TPAs to manage the claims, highly attentive insurance company customer service to look after the queries are two of the most essential qualities of the best group insurance plan. Thus, you have to ensure that the insurance company from where you are buying the healthcare plan has a good market reputation. 

  1. Affordable premium rates 

The affordability factor is for employers or startup founders. As the restaurant owners are the ones paying for the annual renewal charges, having an expensive insurance plan can be too risky. Restaurant businesses do not earn profit at an equal pace throughout the year. The profit numbers increase during festive seasons. So, restaurant startup owners have to maintain a budget while buying the insurance for the employees. Go for an affordable plan with moderate plan coverage benefits and features. 

  1. Accidental treatment support

Employees at a restaurant may have to work for long hours in the kitchen. Hence, the chances of fire accidents are more. Usually, healthcare plans do not separately offer accidental coverage. But there are a few customizable plans where you can include the accidental medical treatment expenditure in the plan coverage. You can consult with the insurance company sales representatives to fetch you a healthcare plan having accidental medical coverage. (burns, injuries, etc.)

  1. The least waiting period 

Different insurance companies have different waiting periods. While finding an insurance plan with no waiting period can be too expensive, you can always settle for a lesser waiting term. You should look for a group healthcare plan that supports critical ailment and pre-existing disease coverage with minimal waiting time. The average time ranges between 12months to 24months in most of the insurance plans. Check the features to find the best one with a minimal waiting period

  1. No prior medical checkups

A restaurant may have employees of different age groups. With employees in higher age bands, there can be multiple problems in approval for medical checkups. So, it is better to go for an insurance plan having no medical checkup for approval formalities. It not only saves time but also may act as a cost reducer in the long run. Why? Because medical checkup reports can alter the premium rates depending on the pre-existing diseases of the employees in the upper age group. So, be wise to find a group healthcare plan that has no such requirements. 

  1. Customizable plans and add-ons

Lastly, you should always provide scope for customization for your employees. You may offer a regular healthcare scheme to them but they should have the chance of expanding the facilities. So, as a startup founder, you should encourage your employees to take up add-on features. It also helps in reducing your financial liabilities as they may share the expense for the additional plan extension.

Identifying the right group policy

Restaurant owners and food-startup owners need an industry-specific healthcare plan that meets the need of the employees working at the restaurant. Thus, approaching the insurance company may not be a wise call. An insurance broker is the one who can help you out with the right plan. They listen to the specific needs and fetch the best plan under your budget. 

Who pays the premiums?

Employers or the restaurant owners typically pay the premiums for covering employees under the group health insurance policy. They can consider charging the employee for the premiums for the family members of the employees through a monthly payroll deduction. 

How many employees have to participate in the plan to be eligible for a Group Health Insurance Policy

Insurers have varying eligibility criterias for providing insurance to a group of people. Some of them stipulate a minimum of 10 primary members ( employees) to be covered under the plan. Few insurers will not provide a customised plan until the number of employees participating in the plan is 100 employees. The minimum number of employees required to get a group plan is seven. 

Offering employees health-care benefits can set you apart from competitors who don’t, making your operation a more desirable place to work. A good first step as you explore what’s involved in the process is to find a broker, who is an expert in structuring health insurance programs. 

PlanCover, is a trustworthy name in the SMB insurance market and can be your one-stop solution. PlanCover is an insurance broker working with the leading healthcare insurers for employers. Startup owners can approach them and find an apt industry-specific healthcare plan to ease their needs. 

** https://nrai.org/restaurant-biz-may-cross-85-of-fy20-levels-this-year/

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