How much does group health insurance cost per employee?

Sum insured per employee

A ₹5 lakh cover costs materially more than a ₹1 lakh cover. Higher ceilings mean the insurer carries more risk, so the per-employee price rises with the sum insured you choose.

Team size

Larger groups spread risk across more lives, which usually lowers the per-employee rate. Very small teams pay a little more per head, though Onsurity still covers teams from just 2 employees.

Age & family mix

An older workforce, or plans that also cover spouses, children and parents, raise the average claim cost — and therefore the premium — versus a young, employee-only group.

Coverage design

Add-ons such as maternity, OPD, day-1 cover for pre-existing conditions, removing room-rent limits, or a wider hospital network all increase the per-employee cost.

City zone

Treatment costs differ across metro and non-metro cities, so insurers apply zone-based pricing. A team concentrated in Tier-1 metros generally sees a higher rate than one in smaller towns.

Prior claims

At renewal, a group that claimed heavily in the previous year can see loading (a premium increase), while a low-claim group may earn a discount.

Right-size the sum insured

Match the cover to what your team actually needs. A ₹3 lakh base with a super top-up can cost far less than a flat ₹5 lakh, while still protecting against large bills.

Use a co-pay or room-rent limit thoughtfully

A modest co-pay or a sensible room-rent cap lowers the premium. Set them at levels employees can live with so the benefit still feels real.

Split employer and employee contribution

Fund the base cover for employees and let them pay to add dependents. You control the budget while employees still get the option to cover family.

Pay monthly instead of a lump sum

A monthly membership removes the large annual outflow and keeps healthcare spend predictable and easy to forecast.

What is the average cost of group health insurance per employee in India?

For a typical ₹1–5 lakh sum insured, employers spend roughly ₹2,000 to ₹10,000 per employee per year. A young, employee-only team on a ₹1–2 lakh cover sits at the lower end; an older team or one that also covers parents on a ₹5 lakh cover sits at the higher end.

Does the employer or the employee pay for group health insurance?

Usually the employer pays the premium for the base employee cover, and it is treated as a business expense. Many employers let employees pay an additional amount to add dependents such as a spouse, children or parents, so the cost is shared for family cover.

Is there a minimum number of employees to buy group health insurance?

Traditional insurers often ask for 20 or more members. Onsurity covers teams from as few as 2 employees, which makes group cover accessible to startups and small businesses that would otherwise be turned away.

Why is my per-employee premium higher than a colleague’s at another company?

The main reasons are a higher sum insured, an older average age, covering dependents, richer add-ons like maternity or OPD, a metro-heavy team, or a history of high claims. Each of these raises the average expected claim and therefore the premium.

How does Onsurity price group health insurance?

Onsurity runs on a flexible monthly membership rather than a single upfront annual premium. You pay a small per-employee amount each month, with no medical check-up needed to start, and can onboard, offboard and adjust the team through the TeamSure dashboard.

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