Private Health Insurance as an Employee Perk Do Staff Value It

As an FCA-authorised expert broker in the UK, WeCovr has helped arrange over 800,000 insurance policies. We understand that for businesses, looking after your people is just as critical as looking after your vehicles. This article explores why Private Medical Insurance (PMI) is a benefit your staff truly value.

Survey insights into why PMI is one of the most valued benefits

In today's competitive job market, a compelling benefits package is no longer a 'nice-to-have'—it's a necessity for attracting and retaining top talent. While salary remains a primary motivator, recent workplace surveys consistently highlight a significant shift in employee priorities. Health and wellbeing have moved front and centre.

According to trends observed in recent Chartered Institute of Personnel and Development (CIPD) reports, health-related benefits are now among the most sought-after perks, often ranking alongside generous pension contributions and flexible working arrangements. Private Medical Insurance (PMI) consistently emerges as a high-value benefit, particularly in the wake of increased pressure on NHS services.

For many employees, the value of PMI is rooted in three core principles:

1. Speed: The ability to bypass long waiting lists for diagnosis and treatment.
2. Choice: The freedom to choose the specialist, hospital, and timing of their care.
3. Peace of Mind: The reassurance that they and their families can access high-quality care when they need it most.

This desire for health security has profound implications not just for individual wellbeing, but for business performance, operational safety, and even the cost of essential cover like fleet insurance.

What is Private Medical Insurance (PMI) and How Does it Work?

At its simplest, Private Medical Insurance is a policy that covers the cost of private healthcare for acute conditions—illnesses or injuries that are likely to respond quickly to treatment. It's designed to complement the services provided by the NHS, not replace them.

For example, if an employee develops a persistent knee problem, the NHS pathway might involve seeing a GP, a referral to a physiotherapist, and then a potentially long wait to see an orthopaedic specialist, followed by another wait for any required surgery. With PMI, that employee could typically see a specialist within days or weeks and receive treatment shortly after, significantly shortening the entire process.

What Does PMI Usually Cover?

• Consultations: Appointments with specialist consultants.
• Diagnostic Tests: MRI scans, CT scans, X-rays, and blood tests.
• Hospital Stays: Including a private room, nursing care, and surgeon's fees.
• Therapies: Such as physiotherapy, osteopathy, or chiropractic treatment following a diagnosis.
• Mental Health Support: Many modern policies include access to counselling and psychiatric care.
• Cancer Care: Comprehensive cover for chemotherapy, radiotherapy, and surgery is a cornerstone of most PMI policies.

What is Typically Excluded?

• Pre-existing Conditions: Ailments you had before taking out the policy.
• Chronic Conditions: Long-term illnesses that cannot be cured, like diabetes or asthma. The NHS manages these.
• Emergency Services: A&E visits, for example, are always handled by the NHS.
• Cosmetic Surgery: Procedures that are not medically necessary.
• Normal Pregnancy and Childbirth: Though complications may be covered.

NHS vs. Private Care Pathway: A Comparison

The primary difference lies in the speed and choice available to the patient.

The Tangible Benefits for Employees: Beyond the Policy Document

For an employee, the value of PMI extends far beyond a simple list of coverages. It provides tangible, life-enhancing benefits that directly address modern anxieties about health and security.

1. Rapid Access to Treatment

The single most compelling reason employees value PMI is the ability to bypass lengthy NHS waiting times. Recent NHS England data indicates that millions of patients are waiting for routine hospital treatment. For an employee suffering from a painful or debilitating condition, a wait of many months can impact their work, family life, and mental health. PMI can reduce that wait from months to mere weeks.

Real-Life Example: A delivery driver for a logistics company develops severe back pain. On the NHS, they face a 9-month wait for an MRI scan and specialist appointment. This means months of pain, reduced mobility, and potential time off work. With PMI, they could have the scan and see a consultant within two weeks, receive a diagnosis, and start physiotherapy immediately, allowing a swift return to full duties.

2. Greater Choice and Control

PMI empowers employees by giving them control over their healthcare journey. They can:

• Choose their specialist: They can research and select a leading consultant in a particular field.
• Choose their hospital: They can opt for a hospital that is convenient, has a good reputation, or specialises in their condition.
• Schedule appointments flexibly: Treatment can be arranged around work and family commitments, minimising disruption.

This level of control reduces the stress and uncertainty that often accompanies a medical diagnosis.

3. Enhanced Peace of Mind

Knowing that a comprehensive health plan is in place provides invaluable peace of mind. This psychological benefit is crucial. Employees feel cared for by their employer, which boosts morale and loyalty. It also extends to their families, as many company schemes allow employees to add their partners and children to the policy.

4. Access to Advanced Treatments

While the NHS provides excellent care, budgetary constraints mean it cannot always offer the very latest drugs or therapies. Some advanced cancer treatments or specialised surgical techniques may only be available privately. A comprehensive PMI policy can provide access to these cutting-edge options, offering hope and potentially better outcomes.

The Employer's Perspective: Why Offer PMI as a Perk?

Offering PMI is a strategic business decision with a clear return on investment. The benefits for the organisation are just as significant as for the individual employee.

• Talent Attraction & Retention: In a competitive recruitment market, a strong benefits package is a key differentiator. Offering PMI signals that you are an employer who invests in the wellbeing of your staff, making your company more attractive to high-calibre candidates.
• Reduced Sickness Absence: This is a major financial benefit. ONS data on sickness absence highlights that musculoskeletal problems and mental health issues are leading causes of lost working days. By providing fast access to physiotherapy, counselling, and other treatments, PMI helps employees recover and return to work much faster, directly improving productivity.
• A More Productive and Engaged Workforce: A healthy team is a productive team. When employees aren't worried about their health or distracted by pain, they are more focused, engaged, and motivated. Showing you care for their wellbeing fosters a positive company culture and boosts morale.
• Fulfilling Duty of Care: Employers have a legal and moral duty of care for their employees' health, safety, and welfare. Offering PMI is a tangible demonstration of this commitment, particularly in physically demanding roles or high-stress environments.

Connecting Health Benefits to Motor Safety and Insurance

For businesses that operate vehicles—from a single company car to a large commercial fleet—the link between employee health and motor insurance is direct and financially significant. A driver's physical and mental fitness is the most critical safety component of any vehicle.

Driver Wellbeing and Fleet Safety

A driver suffering from an untreated medical condition poses a significant risk on the road.

• Musculoskeletal Issues: Persistent back, neck, or joint pain can be distracting and limit a driver's range of motion, affecting their ability to check blind spots or react quickly.
• Vision Problems: Conditions like cataracts or glaucoma can develop slowly. Fast access to diagnostics and treatment via PMI ensures drivers' eyesight remains at the legal standard.
• Stress and Mental Fatigue: A driver dealing with anxiety or depression is more likely to be distracted and have slower reaction times. PMI provides access to mental health support, helping them manage these issues before they become a safety hazard.
• Side Effects of Medication: Long waits for treatment can lead to reliance on strong painkillers, which may cause drowsiness and impair driving ability. Faster treatment can reduce or eliminate the need for such medication.

By ensuring drivers get prompt medical attention, a company actively reduces the risk of road accidents. This isn't just good practice; it's a core part of modern fleet risk management.

The Impact on Fleet Insurance Premiums

Insurance premiums are based on risk. A business that can demonstrate a robust approach to managing driver risk will be viewed more favourably by insurers. While a PMI scheme isn't a direct rating factor, its indirect effects are powerful:

1. A Better Claims History: Healthier, more alert drivers are statistically less likely to be involved in accidents. Fewer accidents mean fewer claims on your fleet insurance policy.
2. Protecting Your No-Claims Bonus: A clean claims record is the fastest way to reduce your motor policy costs.
3. Demonstrating Risk Management: When seeking fleet insurance, being able to show that you invest in driver wellness through PMI can support a case for better terms.

As expert motor insurance UK brokers, WeCovr works with businesses to understand their complete risk profile. We can help you find a best car insurance provider that recognises the value of proactive safety measures, including driver wellness programmes.

Understanding UK Motor Insurance: A Legal Requirement

Whether you're insuring a personal car, a company van, or a whole fleet, having the right motor insurance is a legal obligation in the UK. The Road Traffic Act 1988 mandates that all vehicles used on public roads must have at least Third-Party Only insurance.

Understanding the different levels of cover is essential for making an informed choice.

The Three Main Levels of Cover

1. Third-Party Only (TPO): This is the minimum level of cover required by law. It covers any liability for injury to other people (including your passengers) and damage to their property or vehicles. Crucially, it does not cover any damage to your own vehicle or your own injuries if an accident is your fault.
2. Third-Party, Fire and Theft (TPFT): This includes everything TPO covers, plus protection for your own vehicle if it is stolen or damaged by fire.
3. Comprehensive: This is the highest level of cover. It includes all the protection of TPFT, and it also covers accidental damage to your own vehicle, even if the accident was your fault. It often includes other benefits like windscreen cover as standard.

Business and Fleet Insurance Obligations

A standard personal car insurance policy will not cover a vehicle used for commercial purposes. If you use your vehicle for work (beyond commuting), you need business car insurance. For companies operating multiple vehicles, fleet insurance is the most efficient and cost-effective solution. A fleet policy consolidates all company vehicles under a single policy, simplifying administration and often securing a lower per-vehicle premium.

Key Motor Insurance Concepts Explained

Navigating the world of motor insurance can be confusing. Here are some key terms explained in plain English.

• No-Claims Bonus (NCB) or No-Claims Discount (NCD): For every year you drive without making a claim on your policy, your insurer rewards you with a discount on the following year's premium. This can build up to a substantial saving, often over 60-70% after five or more claim-free years. Making a claim, particularly an 'at-fault' one, will usually result in a partial or complete loss of your NCB.

• Policy Excess: The excess is the amount of money you agree to pay towards a claim. There are two types:

  • Compulsory Excess: A fixed amount set by the insurer.
  • Voluntary Excess: An additional amount you choose to pay. Agreeing to a higher voluntary excess can lower your premium, but you must be sure you can afford to pay the total excess (compulsory + voluntary) if you need to make a claim.

• Optional Extras: These are additional layers of cover you can add to your policy for an extra fee. Common extras include:

  • Breakdown Cover: Provides roadside assistance if your vehicle breaks down.
  • Motor Legal Protection: Covers legal costs if you need to pursue a claim for uninsured losses (like your excess or loss of earnings) against a third party.
  • Courtesy Car Cover: Guarantees you a replacement vehicle while yours is being repaired after an accident.

• How Claims Affect Premiums: When you make a claim, your insurer may increase your premium at renewal time. This is because your claims history suggests you represent a higher risk. The increase will happen even if the accident wasn't your fault, as being involved in any incident suggests a higher future risk. This is why protecting your no-claims bonus and minimising claims is so important.

The Financials: Is PMI Worth the Cost for Businesses?

The cost of a company PMI scheme can vary widely, depending on the level of cover, the number of employees, their average age, and the company's location. However, when viewed as a strategic investment, the returns often outweigh the costs.

Consider the cost of a key employee being absent for six months while awaiting surgery. The financial impact includes:

• The cost of sick pay.
• The cost of hiring a temporary replacement.
• The loss of productivity, knowledge, and experience.
• The potential impact on team morale and project deadlines.

In many cases, the annual cost of a PMI policy for that employee is a fraction of the cost of their prolonged absence.

Furthermore, it's important to remember the tax implications. PMI is considered a 'benefit-in-kind', meaning the employee will pay income tax on the value of the premium, and the employer will pay National Insurance contributions. This should be factored into the overall cost but does not diminish the strategic value.

At WeCovr, we understand that managing business costs is paramount. That's why we also offer discounts on other types of essential business or personal cover when you purchase motor or life insurance through us, helping you maximise value across your entire insurance portfolio.

What Do Employees Really Think? A Look at the 2025 Workplace

Projecting from current trends seen in reports from Glassdoor and the CIPD, the workplace of 2025 will be one where employee wellbeing is non-negotiable. The pandemic fundamentally reshaped employee expectations, elevating health, flexibility, and work-life balance to the top of the priority list.

Top 5 Most Valued Employee Benefits (UK, 2025 Projection)

Private Medical Insurance sits firmly within this new hierarchy of values. It is a powerful, tangible benefit that tells employees their health and wellbeing are a top priority for the business. This message resonates deeply, fostering loyalty and engagement in a way few other perks can.

Ready to explore how the right motor insurance can protect your business, your vehicles, and your people? The expert team at WeCovr is here to help. We compare policies from a wide panel of UK insurers to find you the right cover at a competitive price, from a single van to a complex fleet.

Get your free, no-obligation motor insurance quote today.