New Delhi, Dec 19 (KNN) The welfare of the workforce involved in the Micro, Small and Medium Enterprises is essential to facilitate growth in the sector, a study reveals.

A study conducted jointly by FICCI and KPMG in its findings informed that the MSMEs contribute significantly towards the GDP of the country and among the important parameters for the sector’s growth is the continued welfare of the workforce working in the sector.

FICCI-KPMG in its report titled “MSME group health insurance penetration in India, further said that as of now over 90 per cent of the MSMEs do not offer any financial aid for medical purposes to the families of the employees engaged in the sector.

Also the MSMEs offer no assistance to the employees as well as the family members, the report finding added.

On the question of what package could be adopted for the welfare of MSMEs, the findings reveal that MSMEs preferred a basic cover of personal accident and critical illness with a  focus on a reduction in premiums and coverage of employees only.

Also the micro, small and medium enterprises prefer purchasing insurance via brokers and online channels accounted only for 6 per cent.

Upon the release event of the paper, Shashwat Sharma, Partner and Head, Insurance, KPMG in India said that it is imperative for the MSME sector to extend the socials security coverage to the largely informal or unorganized sector of the economy saying that this would add to the overall productivity.

The goal of improving healthcare coverage to the MSME workforce can be fulfilled through both development of infrastructure and as well as delivering effective and affordable healthcare, he added. (KNN/DA)