- Group health insurance in India typically costs ₹5,000–25,000 per employee per year, driven mainly by sum insured, dependant coverage, and team age profile.
- Most insurers set a minimum of 7 covered lives to issue a standard corporate policy — but teams below that can often qualify by including employees' dependants in the count, or through smaller subscription-style providers built for micro-teams.
- Unlike individual policies, group cover typically waives pre-existing condition waiting periods from day one — a real, tangible benefit for a small team with mixed health histories.
- Premiums paid by the employer are a deductible business expense under Section 37(1) of the Income Tax Act.
She'd made the offer. Better role, better pay than the candidate's last one. The reply came back with one question: does the team have health insurance? She didn't have an answer ready. The offer went to a company that did.
What group health insurance covers
Typically covers
- In-patient hospitalisation for the employee, and dependants if included
- Pre-existing conditions from day one — no waiting period
- No mandatory medical tests for enrolment
- Optional extension to spouse, children, and in some structures, parents
Worth checking before you buy
- Whether cover continues, or converts, after an employee leaves
- Sub-limits on room rent, specific procedures, or maternity
- Whether contractual and probationary staff are included
- Renewal terms — premiums can rise sharply after a claims-heavy year
The minimum team size question
Most IRDAI-licensed insurers set a floor of 7 covered lives to issue a standard employer-employee group policy — not necessarily 7 employees, but 7 lives, which is why smaller teams often bridge the gap by including employees' spouses and children in the count. A four-person team where three employees add a spouse or child reaches 7 lives and qualifies.
"We were a five-person team. I didn't think we qualified for anything until someone mentioned counting dependants."
Below that threshold, options include individual policies for each team member, smaller subscription-based group products built specifically for micro-teams (some accept teams as small as 3), or voluntary ESIC enrolment for eligible establishments under the Code on Social Security, 2020.
Indicative pricing per employee
Figures above are indicative industry ranges for general awareness, not a quote. Actual premium depends on team size, age profile, claims history, and the insurer's underwriting. AVYA doesn't recommend specific insurers or products on this page — for the cover that actually fits your team, talk to AVYA.
What happens when someone leaves
Group cover ends for an employee the day their employment does — the same gap that catches so many women mid-career transition. Some group policies offer a conversion option letting a departing employee move to an individual policy with the same insurer; ask your broker whether yours does. It's a small thing that says a lot about how a company treats people on the way out.