A group policy is affordable and there will be a great convenience for businesses by buying a single policy to cover the needs of all the employees. Insurance companies offer various kinds of group insurance policies so that the needs of clients will be fulfilled in the best possible way. A group policy can be subscribed by a large or small group. It can be bought by institutions and organizations such as schools, colleges, universities, and banks and corporate. Accidental injuries or death will also be covered by the group personal accident insurance policy.
Features of Group Personal Accident Insurance Policy
The main focus of the insurance policy is the coverage of the risk factors due to accidents. The insured members are covered against various kinds of risks that take place due to accidents. The risk coverage will take place throughout the world.
- Customization - A Group Personal Accident Insurance plan can be customized as per your needs.
- Premium - The premium collected by the insurance towards the group policy will be in tune with the number of persons, age, earning potential and risk factors. The premium is very much affordable.
- Covers Risk - The accidental disability (partial or permanent) and death will be covered by the insurance company.
- Higher Cover - The coverage that you get against the premium is very high
- Wide Range of Risk Factors - Accidents take place due to various kinds of risk factors. These risk factors include fire, collision, free fall and road/rail/air/water accidents while travelling.
- Helps you Overcome Financial Loss - The insurance plan covers the loss of income due to accident
- No Medical Check-Up - The greatest advantage of the personal accident plan is that you will not want to undergo medical check-ups to enrol for the policy.
- Flexibility - The personal accident comes with great flexibility. If the group policy is subscribed by an employer, the insurance cover is applicable for employees throughout the employment. Hence, the names can be included and removed as per the company rolls.
- Protection Against Healthcare Costs - The healthcare expenses in-crease at a consistent pace. By subscribing to a group policy, you can overcome various kinds of risks in a very efficient manner.
What is Covered by Group Personal Accident Insurance Policy?
The accidental death or untimely death of a group member will be covered by the group insurance policy. The group personal accident plan can be customized to include the specific risk factors which are unique to the group. The loss of pay and partial/permanent disability will be covered by the policy. The insurance policy covers the insured on a 24/7 basis and it is applicable throughout the world.
The group personal accident insurance plan covers the following risk factors:
- Disability - The accidental disability is covered by the group personal accident plan. The insurance policy will help the individual to over-come the loss of income as he/she fails to attend the workplace. The dependents financial requirements are fulfilled by the policy.
- Death - If the policyholder dies in the accident, the ‘sum assured’ will be paid to the nominee or beneficiary.
- Dismemberment -The loss of limb or any other part of the body will lead to loss of work. The accidental dismemberment clause of the insurance policy will protect the interests of the insured. Hence, the insurance company will pay compensation as per the terms and conditions of the policy.
- Medical Bills - The expensed incurred due to hospitalization and medical treatment will be reimbursed by the insurance company.
- Ambulance Charges - The ambulance charges for admitting the policyholder in a hospital will be reimbursed by the insurance policy.
- Breakage of Bones - If bones are broken due to an accident, the insurance company will pay a lump sum amount as per the policy con-tract. The assessment of the damage will be done by competent authority.
- Transportation of Mortal Remains - The transportation of the mortal remains of the policyholder is covered by the insurance policy. The transportation can take place from the place of accident to the residence or hospital or cremation ground.
What is not Covered by the Group Insurance Policy?
The personal accident insurance policy is available for subscription with certain limitations.
The following incidents do not come under the insurance plan:
- Pre-Existing Disability or Injury - If there is an injury or disability before the subscription of the insurance policy, it is not covered by the policy.
- Pregnancy & Child-Birth - The expenses related to pregnancy and childbirth does not fall under the purview of the personal accident insurance plan.
- Suicide and Self-Harming - If the policyholder commits suicide or harms himself/herself, the insurance claim will be null and void. Similarly, taking higher or over dosage of medicine intentionally will not be covered by the insurance plan.
- Non-Allopathic Medical Treatment - The group personal accident plan is applicable for the treatment of allopathic medication. It is not meant for non-allopathic medical treatment such as Ayurvedic, homeopathy and Unani.
- Consumption of Intoxicants - If the insured consume toxic sub-stances, the policy will not cover. Accidents caused while driving (or other activities) after the consumption of alcohol or drugs will not be covered.
- Participation in Illegal Activities - The insured should not participate in illegal activities. If an accident/injury takes place while participating in illegal activities, the insurance coverage is not applicable.
- Mental Disorders - The issues related to mental health are not covered by the insurance policy.
- Participation in Adventure Sports - If you participate in adventure sports, the accidents or injuries will not be covered by the policy. You can purchase add-on policy by paying an additional premium to cover the risk.
- Accidents while Participating in Armed Forces - The activities under-taken by armed forces will not be covered by the insurance policy.
- Radiation or Exposure to Radioactivity - The exposure to radioactivity or leakage will not be covered by the insurance policy.
- War/War-Like Situations - The accidents that take place due to war or war-like situations are not covered by the insurance policy.
- Natural Death - If the policyholder dies due to natural death, it will not be considered for the insurance claim.
Why should you Purchase a Group Personal Accident Plan?
Accidents may happen at any time and they cannot be avoided in spite of taking the best precautionary measures at the individual level as well as at an organization level. The accidents may happen to anyone in a group. Hence, by contributing a fixed sum of money on regular basis, the financial interests of the whole group will be protected.
The insurance company will consider various risk factors while offering the insurance plan to the group. The following factors will affect the premium:
- Nature of activity
- Earning potential
When the prime-earning member of a family is hospitalized due to the accident, there will be a great stress on the family members. The financial stress will be absorbed by the insurance policy.
- Protection of Employees - The employee’s welfare can be fulfilled by buying a comprehensive insurance policy. It is the responsibility of the employer to protect the assets of the organization. Manpower plays a crucial role in the development of the organization. The accidental risks that take place on and off the workplace will be covered by the group insurance policy.
- Quick Settlement - It is possible to settle a group insurance claim very quickly. The claim proceeds will be paid to the employee or the nominee directly.
- Indemnification of the Employer - The employer will be indemnified of the losses that occur to the employee due to accidents. The insurance company will pay the loss.
- Employer’s Loyalty - The group insurance plan will enhance the loyalty of the employee towards the employer. The employee perceives that the employer is concerned about protecting the interests of the employees. The job attrition rate can be reduced and it will increase the overall efficiency of the organization.
Claims and compensation
The insurance policy can be claimed under various accidental risks. The claim will be processed by the insurance company very quickly and the payment will be made to the policyholder or the beneficiary as per the case.
- Partial Disability - If there is a permanent partial disability which lasts for more than 12 months in succession, the insurance policy will cover 2 to 60% of the sum assured. The payment will be made as per the level of disability. The information will be listed in the policy coverage.
- Total Disability - If there is a permanent total disability which lasts for more than 12 months, the insurance company will pay the sum assured as per the terms of the policy.
- Medical Reimbursement - The cost of hospitalization for the treatment will be borne by the insurance company. In most of the cases, the compensation will be up to a certain percentage of the expenses incurred by the policyholder.
- Change in Lifestyle - The amputation or disability will compel a change in lifestyle. There are chances to modify your vehicle to accommodate your disability. The insurance company will pay financial losses incurred under this head.
Eligibility to Buy Group Personal Accident Insurance
- Online/Offline - The group personal accident insurance plan can be subscribed to by online or offline.
- Age - If your age is in between 18 years and 65 years, the group policy can be purchased.
- Insurance Premium - The insurance premium will be in proportion to the sum assured. The premium can be paid on a monthly or annual basis as per your convenience.
- Automatic Inclusion - The employer’s group personal accident policy provides a subscription to the new employee automatically. As soon as the employee is listed on the company’s payroll, the insurance benefit will be added to the employee. Similarly, the insurance policy is not applicable when the employee quits the organization.
- Special Insurance Plan - A group of people undertaking a special ad-venturous expedition or travel can buy a special insurance package from the insurance company. The plan covers all the risk factors for the group up to the specified period. Various activities that are undertaken during the trip should be shared with the insurance company.
- Documents - To subscribe to a group policy, you should submit cer-tain documents to the insurance company. The documents include insurance proposal form, affirmation form, information of employees, medical reports and previous claim history of employees.
- Claim Form - While submitting the claim form to the insurance company, the insurance company should submit complete personal information of the insured. The information should include the insurance policy number, medical bills, discharge summary, FIR with the police station, etc.
Group Insurance Coverage
There are different types of group personal accident policies offered by various general insurance companies in India. You should be aware of the features offered by various plans by different companies.
Primary Coverage - Under the primary cover, the following risk factors are covered by the group personal accident insurance plan:
- Accidental death
- Permanent total disablement
- Permanent partial disablement
- Temporary total disablement
Additional Coverage - You can buy additional cover by which the risk factors which are not covered by the primary coverage will also be included.
- Respiratory benefit
- Funeral expenses
- Hospital cash allowance
- Modification/adaptation allowance
- Family transportation allowance
- Child education support
The above benefits and any other additional benefits will be offered by the insurance company as per the agreement signed by the insurance company and the insured.
A group insurance policy can be bought by a business entity to protect the interests of the employees. It is also possible to fulfil the legal obligations of the employer towards the employees. The best group personal accident policy will cover various kinds of the risks of group members and it will offer financial compensation to the policyholder or the nominee in a very efficient way. The group insurance premium is very low compared with the benefits offered by the insurance plan. You can buy a group personal accident plan to protect the health and life of your group members!
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