Jakarta, Armfalcon.com – Salary increase may be a commitment of employers in the welfare of employees.
But what is the meaning of a salary increase without protection to cover the risk of their expenses in the health sector, old age, and so on?
Just imagine, if an employee falls ill, and does not have health insurance, then they are not the only ones who will be burdened financially.
Those of you who employ them will also be burdened financially due to decreased productivity at your place of business.
If you share in the medical expenses of employees, cash flow problems can be a threat to you.
That is the reason why it never hurts to consider providing health insurance for employees.
The following is an explanation of employee insurance that you should know.
Insurance for employees is group insurance
A group insurance policy can be defined as an insurance policy issued by an organization that buys insurance protection, for a particular group or groups.
A fairly clear difference between individual and group insurance is the contract.
A group insurance contract is not to insure one person or family, but one group or groups which are generally employees.
The insured party (employee), is not the party that makes and is entitled to receive a copy of the master contract. They will be given a “certificate of insurance” from the policyholder which in this case is the company they work for.
Generally, group insurance becomes an employee welfare program initiated by the employer.
Some of the general benefits provided include group health insurance, group life, and group retirement plans.
The employee insurance risk selection process differs from individual to individual
The process of identification and selection of alias risks underwriting Group insurance is different from individual.
As is known in this process, there is a review of the factors that affect the health risks of the prospective insured (employee).
For example, in employee health insurance, the insurance company will assess the risk of a group of employees.
Several factors that can affect the estimate of the morbidity rate of a group of employees include:
– The nature of the industry in which the prospective insured works
– Age distribution within the group, the older the age, the higher the morbidity rate
– Distribution of men and women in employee groups, this is because even at the same age, women’s morbidity rates tend to be higher than men
Employee insurance will be a companion to BPJS
Based on Government Regulation Number 86 of 2013 concerning Procedures for Imposing Administrative Sanctions on Employers Other than State Officials and Everyone, Apart from Employers, Workers, and Contribution Assistance Recipients in the Implementation of Social Security, BPJS can of course be used to cover other medical expenses that cannot be covered by company health insurance.
Almost all diseases will be covered by BPJS, however, the process of treatment using BPJS can only be done at health facilities (faskes) with a tiered referral system.
If you have to go to a specialist, then the employee still has to go to the health facility and ask for a referral from a general practitioner first.
The existence of this employee insurance will certainly greatly help employees. The reason is, this insurance will be very useful when employees need medical action quickly, without going through a general practitioner or hospital referral process.
It is better if employee insurance is equipped with disability and life income replacement benefits
The more comprehensive employee insurance benefits, then it shows that the company’s level of concern for employees is quite high.
In addition to reimbursement for medical expenses such as hospitalization, outpatient care and medicines, employers can also consider employee health insurance facilities in the form of disability income replacement and life protection.
Disability income insurance can be interpreted as a health insurance program that provides income replacement for the insured who is no longer able to work, due to an illness or accident.
The higher the job risk that the employee has, it is better for the company to consider providing this insurance.
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