Maternity is insured by companies in India: Report

Healthcare inflation in India is growing at the rate of 18-20% annually. Against this backdrop, the lack of appropriate maternity benefits could be one of the major reasons for the decline in the percentage of the female workforce from 26% in 2005 to 20.3% in 2019, the report said.

According to Plum, the average cost of childbirth in Tier-I cities and metros in India in private hospitals ranges between 45,000 more 55,000. On the other hand, the cost of a C-section in private hospitals can be between 70,000 and 2,00,000 depending on the level of complications.

“Though 66% of Plume customers have adopted maternity cover, most of them have covered expenses up to the maximum. 50,000 for up to two children. Only 15% of Plum’s customers, which are new age companies, have taken cover between 1 lakh more 1.25 lakh for motherhood,” Plum said in the report.

Bengaluru has the highest average cost of childbirth in India 55,000, followed by Chennai ( 53,000, Delhi ( 51,000) and 45,000 each in Mumbai and Hyderabad.

According to Plum, standalone retail policies for motherhood do not exist in India.

Additionally, in retail health insurance, there is a waiting period of 90 days from the time the child is born to receive medical insurance coverage. Group health insurance (GHI) policies can cover female employees and female spouses for expenses on maternity treatment, infertility and any antenatal complications and can offer baby day cover from day one.

Plum said ideal maternity benefits should provide a minimum cover of up to 1,00,000 for Tier 1 cities and should have Baby Day cover from day one.

The report further suggested that for workplaces to be considered equitable, companies should consider including surrogacy and adoption leave policies and benefits, same-sex partner maternity and leave benefits and paternity leave and benefits.

Abhishek Poddar, CEO and Co-Founder, Plum, said, “Companies today are in a position to do a lot better for their employees. It is not just about insurance, it is about us workplace equity, social justice and forward thinking. When it comes to education, women in our country are doing better (i.e., growing faster) than men, but as a culture, we are born to them. Making it difficult to return to work after giving up.”