Indian Unicorns Prioritize Employee Health: Plum’s The State of Employee Benefits Report 2023

~Indian unicorns excel in offering maternity benefits, OPD coverage, and telehealth consultations~

Bengaluru, March 16, 2023: Plum, an employee health insurance platform, has released its first edition of a benchmarking report titled “The State of Employee Benefits 2023.” The report evaluated 2,500+ employer-sponsored health insurance plans across businesses of all sizes and found that India’s unicorns, which are start-ups valued at over $1 billion, have performed well in providing comprehensive benefits to their employees as compared to early stage start-ups (having an employee strength of less than 200 employees), high-growth businesses (having 201–750 employees) and mature stage companies (having an employee strength of 751 and above).

Comprehensive benefits include:*

• Health Insurance (GMC)
• Accident and Disability Insurance (GPA)
• Term Life Insurance and comprehensive telehealth consultations (GTL + Telehealth)

Almost all unicorns are concerned about their female employees’ well-being, with 96% of them offering maternity benefits, and around 80% providing a maternity limit above INR 50K. Additionally, half of the unicorn companies have covered their employees’ families, offering a plan that includes all immediate family members including spouse, children, and parents. This reflects Indian unicorns’ endeavour in making health insurance accessible to the “missing middle” of India.

The report also found that approximately 16% of unicorn companies have included OPD (outpatient department) coverage in their standard employee health benefit plan, which is nearly double the 8% of all segments combined. Offering OPD cover is crucial since ~65% of healthcare expenses in India are paid out of one’s own pocket. 

Abhishek Poddar, co-founder and CEO of Plum, said, “Indian unicorns have taken a positive step towards prioritising employee well-being and have established a model for modern work culture. Despite the notable progress made in this area, there is still room for improvement. At Plum, the belief is that it is crucial for all companies to holistically care for their employees and their families.”

“Amid the current environment of uncertainty, it is essential for companies to pay heed to their employees’ holistic health. The costs of healthcare in India are rising and a single illness can drain a family’s lifetime savings. Therefore, as employers, it is important to cover employees’ and their families’ healthcare costs and also any ancillary costs that can occur due to accidents or lifetime disabilities. Not only will this increase peace of mind at work, but also increase retention and create an environment of equitable benefits for all. If salaries are benchmarked, so should benefits be,” Abhishek added.

Here is a snapshot/ report card of the Indian unicorns:

Further, the report found that all unicorns have included other employee health benefits on top of the health insurance cover, with telehealth consultations being the most essential health benefit offered. Approximately 75% of unicorn companies preferred to offer it to their employees, and 30% of them believe in planning a holistic combination of Health Insurance, Accident and Disability Insurance, Term Life Insurance, and comprehensive telehealth consultations for their employees.