Razorpay's bold bet on employee well-being
Razorpay, the fintech unicorn, has unveiled a revamped employee health insurance policy that pushes the boundaries of traditional coverage. The fintech firm's new offering stands out with its rare extension of benefits to siblings, adopted or third children, as well as critical illnesses like HIV/AIDS and PCOS, extending the coverage beyond the traditional spouse-and-children model.
In a country where family ties run deep, this move recognises that "family" isn't always defined by marital status or blood relation. Chitbhanu Nagri, the company's Senior VP of People Ops, explains, "With a majority of our employees being bachelors, the conventional way of covering health insurance policy didn't have a significant value-add for them."
One of the policy's most distinctive features is the provision to cover siblings, which is currently offered by less than 1% of organisations in India, according to data from Prudent. This feature, however, comes with a stipulation – the sibling must be financially dependent on the employee to qualify, irrespective of age or pre-existing conditions.
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Coverage that goes the extra mile
Addressing a broader spectrum of healthcare needs, the policy now covers critical treatments like HIV/AIDS and PCOS, which are often overlooked by traditional employer-provided plans. Critical illness coverage is typically offered only through a flexible-benefit approach, adopted by less than 3% of organisations, Nagri says, citing data from Prudent.
"Our primary objective is to invest in people thoughtfully and, once invested, to champion their cause as our own," Nagri emphasises.
"One way, we believe, this can be achieved is by ensuring their well-being, which also includes extending coverage to illnesses that are often overlooked but are regrettably prevalent."
The policy also enhances maternity benefits, raising the C-section limit to Rs 1 lakh from Rs 75,000, to ease the financial burdens faced by expecting mothers.
Perhaps the most striking feature is the elimination of co-pays for most services, a move unheard of in most Indian companies. The only exception is a 10% co-pay for parent coverage.
Chitbhanu Nagri, SVP, People Operations at Razorpay
The elimination of co-pays could lead to overutilisation and increased costs for the company. Nagri agrees and asserts that "it's a strategic decision made keeping in mind our employees and their families' overall well-being,".
Razorpay expects these progressive policies to bolster employee engagement, talent attraction, and retention while reinforcing its inclusive company culture. The company has introduced several initiatives like 'Resume with Razorpay' for women returning from career breaks, 'Bring Your Children & Pets to Work', and inclusive benefits for LGBTQIA+ and live-in partners.
When asked about the KPIs and success metrics, Nagri stated their open communication channels, including annual and mid-year surveys that address understanding employee needs. “We specifically include questions about benefits to measure how well the programme is meeting the needs of our employees.”
Interestingly, the company has already witnessed a 10% adoption rate for sibling coverage, indicating initial traction.
Can this plan set a new standard?
While the policy's financial implications remain a consideration, Razorpay's move underscores a broader industry shift towards comprehensive and inclusive employee benefits as a key driver of company culture and talent retention.
While the company's inclusive approach is commendable, it does raise concerns regarding financial risks and the importance of responsible utilisation. However, the bold move challenges other organisations to rethink their approach to employee benefits.
The new policy is undeniably unique as It not only challenges traditional notions of family but also sets a new benchmark for employee benefits in India.
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