Health Insurance plans are designed to protect your team members and their family from major medical costs. The biggest benefit of a health insurance plan is that the insurance company will pay for your treatment if you are admitted to a hospital bed. As hospital admission costs can run into several lacs, this is the primary protection (feature) offered by health insurance plans all across the world.
On top of providing payment for hospital admission (IPD treatment), different health insurance plans provide payment in case a doctor recommends any day-care surgery (chemotherapy for example) or specialized investigation (MRI, CT Scan etc.). The insurance company will pay for these procedures even if you are not admitted to a hospital.
All health insurance plans will also cover any instance of a bodily injury due to which you might get a fracture or a wound. The insurance company will also pay for treatment of a fracture or wound even if you are not admitted to a hospital.
In essence, Health insurance is designed to protect you from situations which would otherwise force you to take a loan or to use your savings to pay for treatment.
Apart from major emergencies, you can go one step further and provide coverage for maternity and OPD costs of your team. Maternity and OPD coverage are usually recommended for companies with 50+ employees but can be provided to smaller teams as well.