Challenges Faced by Nonprofit Organisations while Purchasing Group Health Insurance

Nonprofit organisations are crucial in bringing about social change and providing community service in a diverse economy like India. These organisations, unlike the regular ones, are more likely to struggle with accessing basic amenities and require support. Due to the way they are funded, challenges faced by non-profit organisations while purchasing group health insurance for their employees are numerous and must be handled carefully.

Read more
Tailored health plans, dedicated expertise - the perfect match for your organization's well-being
Customized plans

Affordable prices

24X7 Support

Dedicated claims manager

Total Care

All round wellness benefits

Fast-track your search with instant quotes from top insurers
₹1 Lakh cover starting at
No medical test required
Zero waiting period
Paperless claims
secure-icon We don't spam
Get Updates on WhatsApp

Whom do you want to insure?

  • Employee, spouse & kids

  • Employee only

Financial Limitations

One of the main challenges faced by non-profit organisations while purchasing group health insurance is their monetary limitations. A lot of them find it difficult to gather funds for their basic needs, and perks like health insurance can seem like a luxury. It can be a major hindrance as health insurance is crucial for the well-being of employees and their families.

Moreover, with money from multiple donors and fundraisers, it becomes extremely difficult to track a precise turnover. NPOs also need help establishing long-term sustainability and finding new revenue streams, making it harder for them to opt for health insurance.

To overcome this challenge, nonprofit organisations can look for custom plans that offer comprehensive coverage at a lower cost. They can also reach out to potential donors or collaborate with other organisations to pool resources and purchase group health insurance.

Catering to Diverse Coverage Needs

Most NPOs have a diverse workforce of full-time staff, volunteers and part-timers. Each may have different health-related needs, making it impossible to craft a ‘one-for-all' plan for ensuring their well-being.

From young, healthy individuals to employees with chronic conditions, tailoring health benefits to various demographics is crucial. Flexible plan options and supplemental coverage can help address diverse needs like accidents, critical illness, preventive care and special diseases within budget constraints.

Complex Regulatory Landscape

Nonprofit organisations providing health insurance are subject to several regulations imposed by the government, such as employee benefit regulations, anti-discrimination laws and state-specific regulations. Compliance with nonprofit regulations is also crucial for maintaining tax-exempt status (It is important to note that Tax benefits are subject to change in tax laws).

Administrative Burden and Lack of Awareness

Another major challenge faced by non-profit organisations while purchasing group health insurance is their ability to hire limited staff and human resources. Managing administrative tasks such as purchasing and managing group health insurance can be challenging. It can be a major issue as it requires time and effort to research and compare different health insurance plans, enrol employees, and handle claims.

To overcome the several challenges faced by non-profit organisations while purchasing group health insurance, they can outsource the administrative tasks to a third-party administrator or insurance expert.

Why should Nonprofits Prioritise Employee Health Benefits?

Nonprofits should consider the alignment of health benefits with their overall mission. Offering preventive care options and promoting healthy lifestyles can improve employee well-being and reduce long-term healthcare costs. Also, the health of your employees is of paramount importance, irrespective of the kind of business you run. So, nonprofits need to balance the need for comprehensive coverage with budget constraints through creativity and strategic planning.

Example of How Group Health Insurance Helps Nonprofit Organisations Serve their Mission

Here is a hypothetical example to explain the role of GHI for nonprofit organisations:

Sneha's Dilemma

A dedicated social worker at the local animal shelter, Sneha, poured her heart into caring for abandoned animals. Her passion fueled her work, but like many nonprofit employees, she was worried about her health security. Sneha's previous employer didn't offer health insurance, leaving her reliant on a high-deductible individual plan, but the current employer ensured she was covered under a GHI.

One day, while playing fetch with a rescued dog, Sneha tripped and fell, experiencing excruciating pain in her ankle. Rushed to the emergency room, she received the diagnosis: a fractured tibia requiring surgery. The initial shock was compounded by the looming medical bills, threatening to wipe out her savings and derail her plans.

Fortunately, Sneha's new role at the animal shelter offered a lifeline - group mediclaim insurance policy. The group insurance plan, carefully chosen by the nonprofit to be affordable for employees like her, covered a significant portion of her surgery and hospital stay, allowing her to focus on healing and recovery. Knowing she was covered allowed her to prioritise her health and return to work quickly, minimising disruption to her job and the shelter's operations.


As healthcare becomes expensive every passing year, nonprofit businesses continue to find it difficult to provide group health insurance for their employees. But with health insurance being of utmost necessity, they just have to prioritize it. With the ever-changing dynamics and technological advancements, insurers are trying to find the perfect recipe to meet your needs. The key is to know what suits your workforce the best and find the right option that does not break the bank. Moreover, if you still haven't taken group health insurance for your non-profit organization, visit today and find insurance policies for as low as INR 110 per month (per employee).


Group Health Insurance Premium Calculator

Who do you want to insure?

  • Employees
  • Employees & their family

Minimum lives should be 7

  • 1 Lakh
  • 2 Lakh
  • 3 Lakh
  • 4 Lakh
  • 5 Lakh

Include maternity coverage

Premium starts from

(Excluding GST)

Let's find the right plan for you

Speak to our experts to get the right plan for your company's needs

icon Expert advice made easy icon
  • Date
  • Time

When do you want a call back?

  • Today
  • Tomorrow
  • 16 Apr
  • 17 Apr
  • 18 Apr
  • 19 Apr
  • 20 Apr

What will be the suitable time?

  • 11:00am - 12:00pm
  • 12:00pm - 01:00pm
  • 01:00pm - 02:00pm
  • 02:00pm - 03:00pm
  • 03:00pm - 04:00pm
  • 04:00pm - 05:00pm
  • 05:00pm - 06:00pm

Tell us the number you want us to call on

Your privacy matters. We won't spam you

Call scheduled successfully!

Our experts will reach out to you on 4th June between 2:00 PM - 3:00 PM

Written By: PolicyBazaar - Updated: 01 March 2024

Wait! Didn't find what you were looking for?

Our certified business insurance experts are just a call away.

Call scheduled successfully

Thank you
Our experts will provide you assistance with your
insurance coverage. Be assured, all your questions
will be answered

Customizable plans from top insurers

starting @ ₹110/employee*

View Quotes
Group Health Insurance Articles
GIPSA stands for General Insurance Public Sector Association.It is a group of four General insurance companies...Read more
28 Apr 2022 by Policybazaar 15218 Views
Employee welfare is one of the prime responsibilities of an employer. It helps in the smooth functioning of the...Read more
29 Nov 2022 by Policybazaar 8031 Views
A group medical insurance scheme offers many benefits in addition to providing financial support during medical...Read more
08 Feb 2023 by Policybazaar 7397 Views
When it comes to insurance, it's important to have a clear understanding of the available options. GPA (Group...Read more
01 Jun 2023 by Policybazaar 6967 Views
Companies worldwide strive to attract top talent by offering competitive salaries and outstanding corporate...Read more
15 Sep 2023 by Policybazaar 1497 Views
In today's competitive job market, where top talent holds the...Read more
29 Mar 2024 by Policybazaar 64 Views
Payroll management stands as a cornerstone of every business...Read more
26 Mar 2024 by Policybazaar 67 Views
The hybrid work model, a blend of remote and in-office work, is...Read more
26 Mar 2024 by Policybazaar 73 Views
Employee motivation is the driving force that compels...Read more
21 Mar 2024 by Policybazaar 82 Views
Many organisations are grappling with the challenge of ensuring...Read more
21 Mar 2024 by Policybazaar 72 Views
Policybazaar for Business - Group Health Insurance - Customer Reviews
View all
Based on 189 reviews
out of 5
Based on 189 reviews
38 users
136 users
15 users
0 users
0 users
3.8 April 09, 2023
Excellent Support
It was easy to buy insurance from PolicyBazaar website and customer support was also amazing to clear all the doubts.Thankyou. Highly worth it.
4.3 April 01, 2023
Necessary Investment
It is a good and necessary investment. Thanks PB.
4.3 March 24, 2023
Provides Satisfactory Results
I purchased Group health insurance at policybazaar recently and i am so much satisfied with the plan. The application process was smooth and efficient, making the typically tedious task of getting insurance surprisingly hassle-free.Thanks PB.
3.8 March 16, 2023
Helpful In Making Decisions
When it came to selcting the right Group Health Insurance, Policybazaar offered an impressive range of options from reputable insurers. I appreciated the comprehensive details avalable for each policy which helped me to take the better decisions. Thankyou.
4.3 March 15, 2023
Increases Clients Expectations
I recently had the pleasure of securing a Group Health Insurance policy throug PolicyBazaar and I must say the Entire process exceeded my expectations! From start to finish, their service werw great. Thankyou.
3.8 March 02, 2023
Great Experience
I got great deals on PolicyBazaar website. Highly recommend.
4.3 February 17, 2023
Excellent Purchase
It was a excellent purchase at PolicyBazaaar. Thankyou team.
4.3 February 04, 2023
Prompt Services
Policybazaar's efficient claims process was impressive. In case of any medical emergencies, my employees were able to get their claims settled swiftly, allowing them to focus on their health and recovery without worrying about financial aspects.Thankyou
4.3 January 22, 2023
Budget Friendly Purchase
Thankyou PolicyBazaar for providing such a great plan at affordable premium rates. It was a budget-freindly purchase.
4.3 January 09, 2023
Multiple Range Of Benefits
I purchased Group health Insurance which offered me plans with affordable rates Thankyou PB.