Plum, India's leading employee health insurance platform, has partnered with RazorpayX to offer group health insurance benefits to businesses with as few as two employees. Health insurance is extremely expensive and unattainable for the startup segment due to the low employee numbers.

Most insurance companies provide large businesses group medical insurance, which spreads the risk across a large number of employees. To break through this barrier, Plum and RazorpayX have introduced RazorpayX Health Insurance, a payroll-cum-insurance product that provides group health insurance benefits to businesses with as few as two employees. RazorpayX Payroll, an application within the RazorpayX business banking platform, will offer the first-of-its-kind insurance solution.

Companies may compete with large firms in the talent market by purchasing best-in-class health benefits at cheap charges with RazorpayX Health Insurance. Insurance management is automated from employee onboarding to termination, removing the need for agents to make several phone calls and emails.The alliance will aid in the expansion of SMEs in India, with the goal of reaching thousands of startups and SMEs in the coming year.

Abhishek Poddar, Co-founder, Plum, said, “Plum’s partnership with RazorpayX is a game-changer for startups to attract and retain talent. We are thrilled to partner with the RazorpayX Payroll team in their goal of digitizing the finance stack and accelerating SME growth in India. Plum brings its expertise in making employee insurance accessible and affordable for SMEs, along with a high-quality claims experience for employees. We have a vision of taking India's health insurance penetration numbers to 100%, and this strategic partnership is a giant step in that direction. Together, I’m positive we can build something large and impactful for the SME ecosystem.”

Shashank Mehta, General Manager and Head of RazorpayX, said, "Startup founders and business owners have been losing time and money by incurring overheads on repetitive financial tasks like payroll, taxes, bookkeeping, and more. Adding to this is health insurance, which has become a pressing concern, especially in these times. While most health insurance plans are made to suit the needs of large enterprises, small businesses struggle to find the right solution for their employees. With an intent to break this barrier, our partnership with Plum will enable them with custom-built insurance coverage at affordable premiums. At RazorpayX, we want digital-first startups and SMEs to focus on growth, while we reduce their manual work and overheads via our banking & finance automated solutions." He added, "We believe a partnership such as this will make it easier for small businesses to safeguard employees and families, while hiring and retaining the best talent - all from one single platform."

Plum and RazorpayX provide three insurance plans: a Starter plan that covers the basics and is inexpensive, an Essential plan that includes coverage for pre-existing diseases from day one, and a Premium plan that adds features like maternity coverage from day one.

Because it isn't designed for digital-first firms, HR teams and employees find the current insurance buying procedure tedious and wasteful. Bundling health insurance into native digital goods, also known as embedded insurance, can reduce inefficiencies in traditional insurance by bringing the employer and the insurer closer together through greater data, trust, and communication.

Plum has developed partner APIs that allow HR management systems, payroll platforms, and other SME/startup products to offer insurance to their consumers while still using their current systems. Plum, which lets entrepreneurs and SMEs embed insurance into products in less than a week, is presently being integrated with several platforms that support startups and SMEs.