Difference between GMC and GPA

Group Medical Coverage (GMC)

The GMC or group medical coverage is also known as group health insurance. It covers the expenses with respect to the hospitalization of an employee or group of employees. In addition, it also covers accidental hospitalisation. GMC is a customizable policy. It means that it allows the employer or HR to choose the coverage they wish to add to the policy which shall align with the requirement of employees. The GMC is generally provided by the employer to the employees. The employees may extend the coverage of the policy and add their family members to the existing policy.

Coverage of Group Medical Policy

Let us discuss the coverage of a group medical policy.

• The GMC (Group Medical Coverage) encompasses expenses related to hospitalization that occur before, during, and after the hospital stay for employees or policyholders.
• The pre-existing disease of the policyholder is not usually covered by individual health insurance. The policyholders are expected to wait until the waiting period is over as specified in the terms and conditions of the policy documents. However, in group health insurance, the policyholders are not required to wait. This is because there are no terms mentioned with regard to the waiting period in the GMC. It has zero waiting period. Therefore, it covers the pre-existing disease.
• Injury or hospitalization caused by an accident is also covered under the group health insurance.
• The GMC includes maternity insurance and a newborn child.

Group Personal Accident Insurance

GPA or group personal accident insurance covers the expense incurred by an individual due to an inevitable or unforeseeable accident. The GPA insurance protects the workers or employees against financial strains after sustaining injuries. However, a worker or employee may only claim under this policy in case of accidents.

Coverage of GPA

Let us discuss the coverage provided to the employees under group personal accident insurance.

• In the unfortunate event of the insured's demise following an accident, the insurer will provide the full principal sum assured.
• In cases where the injury results in a partial or total permanent disability that persists for a year, the insurer will offer compensation up to the sum assured.
• If the insured experiences complete disability for a temporary period due to an accident, they are eligible to receive weekly compensation.
• The policy includes reimbursement for ambulance charges.

Difference Between GMC and GPA

Conclusion

GMC offers more comprehensive coverage in comparison to GPA. GPA only provides coverage in an accidental injury. GPA can be an add-on to the GMC. This way, the employer may include the coverage of disability, death, etc. sustained by the employee owing to an accident. It is at the discretion of the employer to choose the right policy for the employees. Therefore, the employer must understand the coverage of both policies and determine if the coverage of GPA can be availed as an add-on under the GMC and thus subscribe to the policy wisely.