Group Insurance

Group insurance gives benefits of standardized coverage at competitive rates. Groups-for this purpose can be employer-employee or non-employer-employee groups (credit cardholders of the same bank, members of the same social group and so on.) Your cover ceases to exist if you leave the group.

You must take the following things into consideration while participating in the group insurance policy:

  • A certificate of insurance is entitled to you if you become a part of a non-employer-employee group insurance plan for your
  • The certificate must include the schedule of the benefits, terms and conditions of the policy, and premiums charged.
  • Just one master insurance policy is issued to the group’s Manager. The policy is issued in the name of the group.
  • The insurer could cease your cover, in case you exit the group.
  • The terms and conditions, and the rate of premium of the group policy must be disclosed by the manager of the group. This also includes the premium discounts that the insurance company offers to the group and must pass on these discounts to all the members of the group.
  • Any administrative charges or any other charges must be disclosed by the Manager of the group.

Types of Group Insurance Policies:

Group insurance can be broadly classified under the following heads:

Group Health Insurance:

Group health insurance is a type of insurance that offers coverage to the members of a group, which tends to be the employees of a firm or the members of an organisation.  

Group Personal Accident:

Group Personal Accident is comprehensive coverage that can be purchased for small as well as large groups such as employees, bank customers, corporates, colleges and schools. Regardless of the size of the group, you can purchase tailor-made group personal accident coverage to suit your group’s requirements.

Group Life Insurance:

Group Life Insurance is provided by the employer or other large scale industries such as labour organisation or association, to the members or workers of the organisation. This type of life insurance is usually inexpensive and economical and comparatively has a lower coverage sum.

Group Travel Insurance:

This is a type of insurance that intends to safeguard a group of people who’re travelling together, against various uncertainties including medical emergencies and other issues related to their travels.

Q:

Why is group insurance important?

Ans:

Group insurance is offered by employers to retain its main asset, the employees. Under this plan, the employees are offered with health coverage, personal accident cover, travel insurance, employer’s liability cover in case of fatal accident of the employee during the course of his/her work etc. This policy mitigates the financial risks that an employer may face.

Q:

What are the types of group insurance offered?

Ans:

The types of group insurance include:

1. Group Health Insurance

2. Group Travel Insurance

3. Group Life Insurance

4. Group Personal Accident Insurance

5. Worker’s Compensation Insurance

Q:

What are the benefits to be enjoyed by the employer for buying this plan?

Ans:

The employer can be benefitted with the following benefits:

1. The policy helps the employer to gain the loyalty of its employees

2. It reduces the employee attrition rate

3. The employer can enjoy the tax benefits towards the premiums paid for group insurance

4. It can be an attractive option to retain the talent within an organisation

Q:

What are the benefits to be enjoyed by the Employees?

Ans:

1. Group insurance provides financial security to employees against accident/illness/ disablement and premature death.

2. In case of unfortunate demise of the insured, the family is well-assured with the insurance benefits, which works as a source of income, where the insured offers a fixed amount regularly.

3. The policy benefits are tax-exempted

4. The best part of this insurance is that the insured doesn’t need to pay the premiums. The employer pays the premiums.

Q:

What is the tax benefit to be enjoyed under group insurance?

Ans:

The employers can enjoy tax benefits for the premiums paid under group insurance. The premium paid by the employer is considered as privileges in the hands of the employee, and hence the employer can claim tax rebate under the income tax act. As the premium is considered as a part of business expenses, it is tax exempted.

Q:

Why do you need a group personal accident cover?

Ans:

Group Personal Accident is beneficial for the employees as it provides:

1. Financial security to the Family: In case of accidental demise of the employee, the family’s financial future is secured by offering a regular earning.

2. Covers the medical expenses: In case of an accidental injury or illness leading to an emergency, hospitalisation is covered where a considerable amount is paid towards incurred expenses.

3. Loss of Income: in case of accidental death or disability leading to loss of income are covered. The insurer pays a lump-sum amount that can be used to repay the expenses.

4. Even the minor accidents are covered. Some also pay for educational expenses of dependent children, in case of loss of income.

Q:

What is deductible under Group Insurance Policy?

Ans:

Like health or motor insurance, group insurance also come with deductibles, which is an amount paid by the insured during a claim after that the insurance company settles the rest of the claim amount. Under a group insurance deductible clause, a certain portion of the total claim has to be paid to be the employee. Deductibles can be of two types

1. Compulsory Deductible: this is fixed and pre-decided by the insurance company at the time of buying the policy

2. Voluntary Deductible: the amount is decided by the insured. That means an employee can agree to share the burden as per his/her convenience when a claim is made.

Q:

What is the difference between Compulsory and Voluntary deductible?

Ans:

The main difference is Compulsory deductible is fixed and decided by the insurer while buying a plan. It is a fixed amount that is to be borne by the insured at the time of claim.

On the other hand, Voluntary deductible can be decided based on the insured choice. He/she can agree to share the burden as per the affordability.

Q:

Why do you need group travel insurance?

Ans:

If expanding a business demands the employees to travel throughout the country or outside the country, it is employer’s responsibility to protect those trips. As we can’t deny travel related risks such as loss of baggage, flight delay, medical emergency, with travel group travel insurance, the employees can be covered against such situations.

Q:

What are the features of Group Health Insurance?

Ans:

The main features of group health insurance include:

1. This policy comes with no waiting period. That means the insured is covered from day one.

2. The insured can avail cashless healthcare services at any of the network hospitals

3. It covers pre and post hospitalisation expenses in case of emergency or planned hospitalisation

4. No pre-medical tests are required for availing this policy, even if someone has a pre-existing

5. Apart from insuring the employees, the policy benefits are extended to its family as well

6. Apart from the hospitalisation expenses, it covers ancillary charges such as ambulance cost etc. are covered.

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