What’s the Minimum Employee Requirement for Group Health Insurance?

In today’s world, work takes up a significant chunk of your day and life. It is not something that can be changed overnight, but something that must still change. Somehow, we have started to live so that we can work, and that has taken a toll on our health. Facing heart problems early on in life, diabetes, joint pains, and whatnot is a part of daily complaints these days.

As an employer, it is one’s responsibility to take care of their employees’ health. Here are some things you can do for your employees: create a better working environment, be a good listener, understand their worries, and get group health care plans for the group of people working for you.

You might wonder, is it possible to get group health insurance if you own a medium-sized business or a small-sized business? Yes! It is possible. In this blog, we are going to discuss the eligibility for issuing a group health policy and what is the minimum number of employees required to do so.

 Group Health Insurance

Individual health insurance covers the health-related finances of the insured person. Similarly, group health insurance covers the potential financial losses and responsibilities of a collection of people working under the same title or organisation.

The group health policy also allows the employees to include their family members under the policy coverage. This insurance plays a vital role in gaining various benefits for both the employee and the employer, like tax benefits, hospital bill reimbursements, etc.

Let us understand the eligibility criteria for purchasing a group health insurance.

 Factors Determining Who Can Buy Group Health Insurance

Like any other insurance policy, there are criteria for the group medical insurance, too. Let us talk about the group health insurance requirements, specifically the minimum number of employees and the concept of group in IRDAI.

  •  Minimum Number Of Employees/People

It is a little difficult to say a fixed number of employees required for an employer to buy a group health plan since the number differs from one insurance company to another. However, reputed companies like Tata AIG provide this policy for a small-sized company, with the employee number being 10.

Earlier, it used to be 20 or above, but since times have changed and there is a rise in the number of start-ups, the insurance companies have started being considerate of them, too. If you are buying a group health insurance policy for your employees, ensure the minimum number requirement with your chosen insurance company.

  •  Type Of Organisation/Groups

We have established that the group health policies are available for a group of people. Now, what kind of group is this supposed to be? There are two types of groups, according to the Insurance Regulatory and Development Authority of India (IRDAI): The employer-employee group and the non-employer-employee group.

As the name suggests, if an organisation is registered as an enterprise where the relation between the people is that of an employer and employees, then it is the employer-employee group.

If not, and if the relation is based on something else, like a similar study course, credit card group, society group, etc., it is a non-employer-employee group. Both of these groups are eligible for the group health insurance policy.

 Benefits of Group Health Insurance

  • As mentioned above, both the employers and employees receive tax benefits on the premium payments for the insurance. (According to the policy terms and proportion of payments)
  • This facility retains good talent within the company. It also motivates and creates a better space for creativity for the employees. Employees usually prefer places that care for them rather than the ones that don’t.
  • Attracts better people to the company. Word of mouth is a great thing. When people find out about the caring facilities your company provides, they are going to want to join you on the journey and make your company bigger.
  • The policy is very cost-efficient and provides better services and coverage at a lower premium.
  • Risk mitigation also reduces the risk from any one person’s shoulder and hence is preferred more.


In a world where an employee is neglected and is used as a pawn in the larger game, a little care from their own organisation will go a long way. At the end of the day, all of us are humans, and we like it when we receive benefits and better facilities. As an employer, it is also beneficial if your employees remain healthy for a longer time, motivated and inspired!

As businesses navigate the complexities of insurance options, the commitment to providing quality healthcare for employees remains a powerful tool for attracting, retaining, and nurturing the talent that drives success.