Do I need group health insurance if I already have ESIC?
Often, yes. ESIC only covers employees earning up to ₹21,000 a month and only at ESIC-empanelled facilities. Higher earners, founders and anyone wanting cashless treatment at a wider hospital network fall outside it. Most employers add a voluntary group health plan on top of ESIC so the whole team — not just the below-threshold staff — is properly covered.
Last updated 09-Jul-2026 · Onsurity Answers
Often, yes. ESIC only covers employees earning up to ₹21,000 a month and only at ESIC-empanelled facilities. Higher earners, founders and anyone wanting cashless treatment at a wider hospital network fall outside it. Most employers add a voluntary group health plan on top of ESIC so the whole team — not just the below-threshold staff — is properly covered.
Where ESIC alone leaves gaps
ESIC is a statutory floor for lower-wage staff. Here is who and what it does not reach.
Above-threshold staff
ESIC covers only employees earning up to ₹21,000 a month. Anyone above that — most of your senior and mid-level team — is not covered by ESIC at all, and needs cover elsewhere.
Founders & directors
Promoters and working directors are generally outside ESIC. A group plan is how they get covered alongside the team.
Hospital choice
ESIC treatment is at ESIC-empanelled hospitals and dispensaries. A group plan opens up cashless access to a much wider network — Onsurity covers 10,000+ hospitals.
Experience & flexibility
A group health plan can offer features ESIC does not, such as broader dependent cover and a smoother, digital claims experience, which matters for retention.
Why employers add a plan on top
ESIC is a floor, not full cover
ESIC is a valuable statutory safety net for lower-wage employees, but it was never designed to be the whole health benefit for a mixed-income workforce. It leaves a large part of most teams uncovered.
One team, one standard of care
Adding a group plan means senior staff, founders and below-threshold employees can all access good hospitals cashlessly, rather than some of the team having a very different experience.
Keep ESIC, add on top
You continue to meet your ESIC obligation for eligible employees and layer a voluntary group plan over it. The two coexist — one is statutory, the other is the benefit you design.
Start small, scale up
Onsurity’s group cover starts from just 2 employees on a flexible monthly membership, so even a small company running ESIC can add a plan for the staff ESIC does not reach.
Frequently asked questions
If I already pay ESIC contributions, isn’t that enough?
For eligible lower-wage employees, ESIC provides a statutory safety net. But it does not cover staff earning above the ₹21,000 monthly threshold, generally excludes founders, and restricts treatment to ESIC facilities — so most employers add a voluntary group plan to cover the rest of the team.
Which employees does ESIC leave out?
Primarily employees earning more than ₹21,000 a month, along with founders and working directors. These people have no ESIC cover, so a group health plan is usually how they are insured.
Can I have ESIC and a group health plan at the same time?
Yes. You keep meeting your ESIC obligation for eligible employees and add a voluntary group health plan on top. The statutory scheme and the private plan operate alongside each other.
What does a group plan add over ESIC?
Wider hospital choice with cashless access to 10,000+ network hospitals, cover for higher earners and founders, broader dependent options, and a faster, more digital claims experience than the ESIC route.
We are a small company on ESIC — is a group plan worth it?
It can be, especially for the staff ESIC does not reach. Onsurity’s group cover starts from just 2 employees on a flexible monthly membership, so adding a plan is feasible even for a small team.
Keep reading
Which one is mandatory and which is voluntary.
What the law requires of private companies.
Extending cover beyond permanent employees.
A tailored group health quote for your team.
Cover the team ESIC can’t reach
Add voluntary group health from 2 employees — cashless at 10,000+ hospitals, for founders and higher earners too, on a flexible monthly membership.
Get a group health quote