- Health insurance through an EOR usually means a group policy, which is standard for salaried employees earning above Rs 21,000 a month, so expect it, but confirm it is in your package.
- Group cover has real advantages: pre-existing conditions are usually covered from day one, and there is normally no medical test to enrol.
- Typical cover is a family floater of around Rs 3 to 10 lakh, covering you, your spouse, and children, with parents often an add-on.
- Watch the gaps: the sum insured can be low, parents may cost extra, and sub-limits or co-pay clauses can reduce payouts.
- The biggest catch is that group cover ends when you leave the job, so it is not something to rely on alone.
- You can negotiate the sum insured, family and parent inclusion, and maternity cover, usually at the offer stage.
- Keep a personal health policy too, and consider porting your group cover when you leave. This is general information, not advice.
When you are employed through an Employer of Record, health insurance usually comes as part of the package, arranged by your employer rather than bought by you. That is a real benefit, and it works differently from a policy you would buy yourself, in some ways better.
But the coverage is not automatic, not unlimited, and not permanent. This guide explains what to expect from health insurance through an EOR, where the gaps are, what you can negotiate, and why you should still keep a policy of your own.
Do EOR employees get health insurance?
Usually, yes. A group health policy, often called Group Medical Cover, is a standard benefit for salaried employees in India who earn above Rs 21,000 a month, which most EOR employees do. So a good EOR includes it in your package, funded either by the EOR or by the foreign company you work for. Because your legal employer is the EOR, it is the one that arranges and administers the cover, as our guide to who your legal employer is under an EOR explains.
One thing to confirm, though: health insurance can be an optional benefit the foreign company chooses to fund, so do not assume it is there. Check that it is actually included, and at what level, before you sign.
There is also a statutory scheme, Employees' State Insurance (ESI), but it only covers employees earning up to Rs 21,000 a month. Above that limit, ESI does not apply, and your group policy is what you rely on.
What to expect from the group cover
Group policies are generous in ways an individual policy often is not, because the risk is pooled across a whole workforce. Here is what a typical one looks like.
| Feature | What to expect |
|---|---|
| Sum insured | Commonly Rs 3 to 10 lakh a year, usually as a family floater shared across those covered |
| Who is covered | You, and usually your spouse and children; parents are often an optional add-on |
| Pre-existing conditions | Usually covered from day one, with no waiting period |
| Maternity | Often covered, sometimes with a short waiting period and a cap on the amount |
| Cashless treatment | Available at the insurer's network hospitals |
| Medical test to enrol | Usually none |
Two of these are worth pausing on. Pre-existing conditions being covered from day one, and no medical test to join, are advantages a fresh individual policy rarely offers, where a pre-existing condition can carry a waiting period of up to three years. This is exactly why group cover is worth having even alongside a personal policy.
Where the gaps are
Group cover is a strong benefit, but it is not complete. Check these before you count on it.
- The sum insured may be low. A cover of Rs 3 to 5 lakh can run out fast during a serious hospital stay in a big city. If yours is on the lower side, a top-up is worth considering.
- Parents may not be included. Many policies cover your spouse and children by default but add parents only at extra cost, if at all.
- Sub-limits and co-pay. Look for room-rent caps, disease-specific sub-limits, or a co-pay clause, any of which can reduce what the policy actually pays.
- Who funds what. The base cover is usually employer-funded, but adding parents, raising the sum insured, or buying a top-up may come out of your own pocket.
- It ends when you leave. Group cover is tied to your job and stops on your last working day, which is the gap that matters most, covered below.
What to negotiate
Because the foreign company sets the benefits budget and the EOR administers the policy, the health cover is negotiable, and the best time to raise it is at the offer stage, or at renewal.
- A higher sum insured, or a top-up, if the default cover looks thin for your city and family.
- Family and parents included, rather than just yourself, especially if dependents rely on you.
- Maternity cover, if you are planning a family, since the waiting period and cap vary.
- The company funding the premium, including for dependents, rather than leaving that to you.
The practical move is simple: before you sign, ask to see the policy document and the sum insured, and treat the health cover as a negotiable part of your package, like salary or leave. Our list of questions to ask before signing an EOR contract includes confirming exactly this.
Do not rely on it alone
The single most important thing to understand about group cover is that it belongs to the job, not to you. When you leave, resign, or the role ends, the cover stops, usually on your last working day. A gap between jobs can leave you and your family uninsured at the worst possible moment.
- Keep a personal health policy of your own, running independently of any job. It stays with you between roles and builds its own no-waiting history over time. Our guide to building your own safety net covers how to choose one, and the premium you pay is deductible under Section 80D in the old tax regime.
- Port your group cover when you leave. Under IRDAI rules, you can convert your group policy to an individual one with the same insurer, keeping your accumulated continuity credits, if you apply in time, generally around 45 days before the cover ends.
Treat the group policy as a strong addition to your own base cover, not as your only protection. That way, a change of job never becomes a change in whether you are insured.
Conclusion
Health insurance through an EOR is a genuine benefit, and often a better-structured one than you could buy yourself, with pre-existing conditions covered from day one and no medical test to join. The job is to know what you are getting, check the gaps in the sum insured and sub-limits, and negotiate the cover up where it matters.
Above all, remember that group cover ends with the job. Keep a personal policy alongside it, port the group cover if you move on, and you get the best of both: a strong employer benefit today, and continuous protection whatever happens to the role.
Frequently asked questions
Do I get health insurance if I am employed through an EOR?
Usually yes. A group health policy is a standard benefit for salaried employees earning above Rs 21,000 a month, and a good EOR includes it, funded by the EOR or the foreign company. Confirm it is in your package and at what level, since it can be an optional benefit.
Are pre-existing conditions covered in EOR group insurance?
Usually yes, from day one, with no waiting period. This is a key advantage of group cover, because the risk is pooled across the workforce, unlike an individual policy where a pre-existing condition can carry a waiting period of up to three years.
Does the group policy cover my family and parents?
Typically it covers you, your spouse, and children as a family floater. Parents are often an optional add-on at extra cost, so check whether they are included and negotiate their inclusion if you need it.
What happens to my health cover when I leave the job?
It ends, usually on your last working day, because group cover is tied to your employment. You can port it to an individual policy with the same insurer under IRDAI rules, keeping continuity credits, if you apply around 45 days before it lapses.
Can I negotiate the health insurance in my EOR package?
Yes. The sum insured, family and parent inclusion, maternity cover, and who funds the premium are all negotiable, usually at the offer stage. Ask to see the policy document and sum insured before you sign.
Should I have my own health insurance too?
Yes. Because group cover ends with the job, a personal policy keeps you protected between roles and builds its own waiting-period history. Treat the group policy as a top-up to your own base cover, not your only protection.
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