Types of Group Insurance Policies for Small and Medium Enterprises

Group Insurance Policies for Small and Medium Enterprises

There are several kinds of group insurance policies for small and medium enterprises available in India.

Let us discuss such plans in detail:

• Group Health Insurance

  Group health insurance or medical coverage is a healthcare policy. It provides health-related coverage to a group of people or employees. Such policies are generally purchased by employers for their employees. 

  However, an employee may purchase additional coverage in the existing employer employee insurance. The mediclaim policy offers comprehensive medical coverage. This includes medical procedures, preventive care, prescription medicine or drugs, etc.

  The employer under mediclaim cover may also avail of some additional benefits. This includes health education, wellness programs, etc.

• Group Personal Accident Insurance

  An employee may suffer from an accident. It may take place at any time with anyone. In addition, an accident may leave an employee with permanent or partial disability. 

  The employee may lose the source of earnings in case of disability. Therefore, such risks must be mitigated by subscribing to a group personal accident insurance policy.

  The personal accident insurance policy offers coverage against accidental death. It helps an employee by providing monetary benefits in case of disability. Such insurance may also be called a group accident guard policy.

  The family of the employee or insured under the group personal accident policy may avail of financial protection in the absence of the insured.

  The policy offers coverage in the following cases.

  • Permanent disability
  • Partial disability
  • Accidental death
  • Temporary disability
  • Medical expenses arising from an accident

• Workmen Compensation Insurance

  Workmen compensation insurance policy is another group insurance policy for small and medium enterprise.

  Workmen's compensation insurance is also known as labor insurance. It is a scheme which is expected to indemnify an employer against financial compensation. The employer purchases such insurance policies. 

  It offers health-related coverage to the labor or employees or workmen. The policy offers financial assistance in case of medical expenses incurred by workmen. It further offers financial protection if a workman loses his source of earning or wage.

  The workmen compensation scheme is the statutory mandate in several countries. In India, such policy is guided under the workmen compensation act. In addition, every employer is subjected to providing medical care to their employees in case of illness or injury. If an employee suffers from an injury during the course of his employment, the employer is bound to ascertain the medical treatment of the workman.

  Below mentioned are the types of industries which must purchase workmen's compensation insurance policies for their employees or workers.

  • Every high-risk industry such as manufacturing, transportation, and construction is expected to buy a workmen compensation scheme for the employees.
  • There are several states in which laws bind the employer to buy such a policy for their workmen. Therefore, the employer must check the law and regulations of the state pertaining to the workmen's compensation insurance.
  • A business with a history of accidents or injuries at the workplace must buy a workmen's compensation insurance policy.
  • Small businesses should also purchase such policies.

Conclusion

There are several other group insurance policies for small and medium enterprises available in India. This includes group travel insurance, public liability insurance, and group pension insurance. The employer must purchase a group health insurance policy for their employees. The Group insurance policies ensure several benefits to the employees.