Employee Health Insurance: Employer-provided health benefits are becoming more comprehensive in India, with companies increasingly offering higher medical coverage, improved maternity benefits and additional healthcare services for employees and their families.
According to Plum’s The Standard of Employee Benefits 2026–27, employers are moving beyond basic hospitalisation insurance and expanding their overall healthcare benefits package. The report highlights significant growth in higher sum-insured policies, maternity coverage, group term life insurance and personal accident protection.
₹5 Lakh Health Cover Becoming More Common
The report shows that the number of companies offering health insurance with a sum insured of more than ₹5 lakh has increased by 53% since FY22.
The change indicates that higher coverage, which was previously considered a stronger employee benefit, is increasingly becoming part of standard corporate healthcare packages.
Plum’s benchmark data shows that the median organisation in 2025–26 offers ₹5 lakh of health insurance coverage, along with family coverage, ₹50,000 maternity cover, group personal accident (GPA) and group term life (GTL) protection.
The report also notes that organisations are increasingly adding services such as telehealth, mental-health support and health check-ups.
Maternity and Life Insurance Benefits See Strong Growth
Maternity coverage has also expanded considerably. According to the report, the number of employers offering more than ₹75,000 in maternity cover has risen by 155% since FY22.
Similarly, the availability of group term life and personal accident cover has increased by 179% during the same period.
This suggests that employers are increasingly looking at employee benefits as a broader package rather than limiting them to basic medical insurance.
| Benefit trend | Change or benchmark |
|---|---|
| Health cover above ₹5 lakh | 53% increase since FY22 |
| Maternity cover above ₹75,000 | 155% increase since FY22 |
| Group term life & personal accident cover | 179% increase since FY22 |
| Average additional healthcare benefits | Increased from 1 to 3 |
| Healthcare share of total benefits spending | 3% to 6.1% since FY23 |
| Healthcare spending per employee | More than doubled since FY23 |
| Median health-benefit investment | 14.7% CAGR over three years |
| Median health insurance cover | ₹5 lakh |
| Median maternity cover | ₹50,000 |
| Additional benefits | Telehealth, mental health and health check-ups |
Source: Plum
Healthcare Spending Is Rising
The increase is not limited to insurance coverage. Plum’s report states that median investment in health benefits per employee has grown at a 14.7% compound annual growth rate over the past three years.
The report attributes the rise to both increasing healthcare costs and improvements in the quality and scope of benefits offered by employers.
Healthcare now accounts for a larger portion of overall employee benefits spending. Its share has increased from 3% in FY23 to 6.1%, while median healthcare spending per employee has more than doubled during the same period.
At the same time, the average number of healthcare benefits provided beyond insurance has increased from one to three. Telehealth services, preventive health check-ups and mental-health support are among the benefits gaining greater prominence.
Employers Moving Towards Holistic Healthcare
The report highlights a broader shift in the way companies approach employee healthcare. Instead of focusing primarily on insurance, employers are increasingly combining medical coverage with preventive and primary healthcare services.
The pace of this transition varies across employer categories. Funded startups are adopting wider benefit packages early as they compete for talent, while local Indian businesses are continuing to catch up with funded and international companies.
For employees, this means the amount shown as the sum insured is increasingly only one part of the overall healthcare package. Higher medical coverage, maternity benefits, preventive care, mental-health support, telehealth services and wider family protection are becoming important components of employee benefits.
Disclaimer: This article is intended for general informational purposes and is based on the findings and figures provided in Plum’s The Standard of Employee Benefits 2026–27. Employee benefits vary between organisations and may change according to company policies, employment terms and other factors. Readers should refer to the original report or their employer’s official benefits policy for specific details.