Local Insurance

Hello everyone,

I have an expat German employee who is holding an international insurance issued by our head office in Germany, when we took a local insurance I have added him on it as well.

Question: Is it mandatory under the labor law in India that all its employees need to have a local insurance? or will the international insurance enough?

Thank you in advance for those who will reply.


Insurance is not mandatory or prescribed by any law for expats but is internal company policy. If the international insurance policy is valid in India, then it would not be necessary to include again in a local policy.



No specific knowedge about Insurance as a subject in labour laws in India.

However in April 2020, Government of India made it mandatory for all employers to provide Medical Insurance for employees in India.

Orde No. 40-3/2020-DM-1 (A), issued as part of the consolidated revised guidelines by the ministry of home affairs, made it mandatory for all employers, who resume functioning post-COVID-19 lockdown in the country, to provide medical insurance to their employees. As per clause 5 of Annexure-II of the revised guidelines and standard operating procedure for social distancing for offices, workplaces, factories, and establishments, medical insurance for the workers is to be made mandatory.

Order reference

So in your case if the mediclaim policy given to the expat works in India, I think the issue is resolved


@mohanjacob thank you for your reply

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@Sree thank you for your comprehensive replies as always :blush:

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@Ludy I was assuming that the query was for India. For different countries, the rule can vary. For exaple , UAE, there is a law for health insurance.

The objective of the law is to ensure that all employees enjoy a minimum level of health cover to
protect them in the case of illness

According to Cigna, a popular health insurance company in UAE, “Dubai medical insurance law requires that employers ensure health cover for their workforce. A basic health plan that employees can benefit from ought to have an annual premium ranging between Dh 500 - Dh 700 with a maximum insurance cover of Dh 150,00 per person per annum. The cost of insurance must be covered by the employer, and this amount is not deductible from employee salaries. This medical insurance Dubai law is applicable in every region of the emirate, including the free-trade areas.”

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Good to know this. Thank you for sharing this valuable information.

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@Sree ,

Yes the inquiry is for India, as in UAE insurance is mandatory for visa processing :slight_smile: