In a recent conversation with a human resources (HR) manager of a multinational corporation, the discussion centred on introducing new insurance covers to highlight the organisation’s DEI (diversity, equity and inclusion) priorities. While this is important, I suggested reviewing their existing maternity limits, which were Rs.50,000 for a normal delivery and Rs.75,000 for a Caesarean section. Maternity is one of the most visible and frequently used benefits in a group health insurance policy. It is also one of the most poorly understood.
Most employees review their coverage late in the pregnancy cycle. By then, the hospital has been finalised and costs have been locked in. Any shortfall becomes an out-of-pocket expense. The problem is not just awareness. Many group policies have not kept pace with the way maternity costs have evolved. A decade ago, maternity limits of Rs.35,000–50,000 were adequate. This is no longer the case.
