Less than 10% of micro, small and medium enterprises (MSMEs) in India currently provide group health insurance coverage to their workers according to a new data analysis.
A new dataset from the National Institute for Micro, Small and Medium Enterprises (NI-MSME) reveals that less than 10% of MSMEs currently provide group health insurance coverage to their workers..
Most MSME employees are thus left uninsured, especially in the informal and unorganised segments despite these making up a major part of India's workforce.
In India group health insurance is often the first and only form of health protection for salaried workers. For MSME employees, who may not be able to afford individual plans, this could mean the difference between receiving timely treatment or delaying care due to cost.
Moreover, group plans come with added benefits like no medical checks, instant enrolment, maternity cover, and mental health support. These features are often difficult to access without employer sponsorship.
Adoption of group health insurance plan is highest in urban Tier 1 service sectors, such as IT or financial services. However, in the manufacturing, construction, and retail sectors, where physical risks are higher, they show very low coverage. Micro and small enterprises are least likely to have any insurance benefits for their staff.
With India pushing for universal health coverage and insurance inclusion, MSMEs represent the next frontier. Policymakers, insurers, and industry leaders are now focusing on this underserved segment, recognising that health protection isn't just a big company benefit anymore but a basic workplace right.