What is GPA Insurance?

July 19, 2023
Read more of your interests, read less insurance paperwork
Ditch the paperwork with Plum's group health insurance
Click here to know how Plum helps 3000+ HRs ➝

GPA insurance - what is it?

GPA insurance refers to a group personal accident insurance policy. It is a protection plan that caters solely to the employees of an organisation and is issued by the employer on behalf of/for their workforce. Why is this policy important? Well, it is primarily created to contribute towards financial support against the death of an employee caused by an accident. It also covers medical expenses arising from partial/permanent disability caused due to an accidental injury. 

In short, be it on the road or off-road, you can keep your employees shielded against accidents at all times. 

Got You Fist Bump GIF by StickerGiant

GPA policy - key features and benefits

Group accident insurance is ideal for salaried employees and householders with immediate dependents. Providing financial protection to your office staff against unanticipated accidental injury that can lead to death should be first-hand precedence for every employer, business owner or co-founder. In fact, make it a part of your annual operating plan

There is nothing better than offering financial independence to your hardworking workers during times of medical crisis. Here is a list of good advantages of having a group personal accident insurance policy.

Cover for accidents and death - This is the core cover component of GPA insurance. Employees who travel a lot are often exposed to greater risk than on-desk workers. In the circumstance of a severe accident in the course of active employment, the worker can undergo partial/temporary or permanent disablement. Medical treatment for accidents in a hospital is an expensive affair. This is where a GPA policy will come to the rescue of the employer-employees. 

In the event of loss of human life due to a major accident, the cover amount (sum assured) is given in the form of a lump sum or in equated monthly instalments to the employee's family members (spouse, children, dependents). 

Cover for disability 

Total disability  - permanentSevere accidents can often lead to critical injuries that may leave an employee permanently handicapped for 12 months or more. In such a case, the sum assured amount is given to the employee.Partial disability - permanentAcute accidents can cause permanent partial disability. If an employee undergoes such an instance for 12 months or more, a fixed percentage of the sum assured amount will be given as compensation to the employee. The payment depends on the level of disability sustained.

Fractures and bone cover - A road accident can break an individual's bones. Factures require medical operations to be conducted by a surgeon in a hospital. If an employee suffers from broken bones caused by an accident, the GPA cover will provide a lump sum amount for medical expenses and treatment. 

Cost of lifestyle adjustment - Being handicapped can be difficult, not just for the employee but also for their respective family members. Physical disabilities will require lifestyle modifications such as a wheelchair or 24-hour caretaker. Financial assistance is essential in such times of need. As a corporate owner, this is why you need a GPA for your workforce. 

Mediclaim reimbursement - Accidents that require hospitalisation and medical treatment can be covered under GPA insurance. The cover is generally a fixed percentage of the sum assured amount.

Expenses for ambulance transportation - On-road accidents can occur anytime and anywhere. Transportation from the accident site to a nearby hospital is essential for all the parties involved in the accident. The cost of ambulance transportation can be reimbursed under this plan. 

Expenses for conveying mortal remains - Your group accidental insurance policy will pay back the cost of shifting the mortal remains of the employee from the hospital to the cremation area or residence for last rites. 

What is the compensation under GPA for accidental death?

  • Provides comprehensive cover against accidents and disabilities caused by a personal accident.
  • 100% of the sum assured is paid in case of accidental death.
  • 50% of the sum assured is paid to the employee in case of partial disablement.
  • Specific plans provide cover for critical illnesses such as heart attack and stroke.
  • A fixed portion of the sum assured amount will be given in case of temporary complete disability. 
  • Covers for reconstructive surgery post an accident.
  • Specific plans provide compensation for the deceased employee's children's school fees. 
  • Specific plans also come with the premium payment benefit. The dependents need not pay for the policy. The insurer will pay the policy's future premiums after the employee's death. 

Are there any exclusions?

Yes, here is a list of conditions not covered by GPA insurance. 

  • Self-inflicted wounds, attempt to life. Any form of suicidal tendencies is not included. 
  • Injury resulting from engaging in illegal and criminal activities is permanently excluded.
  • Participation in the military or defence forces.
  • Working in a hazardous environment. 
  • War, civil unrest and terrorism are permanently banned. 
  • Any kind of damage to physical/mental health due to substance and narcotics abuse. 

Why should you get GPA insurance for your employees?

Your workforce is the most significant asset of your company. Many workers have their incredible families to take care of. Protecting your employees with a GPA will shield them from unplanned emergencies leading to the demise or bodily disablement. In return, the dependents of the employee will need not worry about the financial stress of losing income from the primary breadwinner. 

Medical expenses arising out of emergency hospitalisation due to an accident get also covered up to a certain amount of the sum assured. Chronic accidents can leave an individual worker impaired for a certain time period. Such a state is physically, mentally, and emotionally traumatic for the employee and their family. This often leads to a financial crisis and the depletion of a lifetime of savings. A GPA insurance is an excellent policy to shield your workforce inside and outside their workspace. 

As an employer, this policy will help the employees take good care of the health and safety of their families in times of accidental emergency. You and your employees need not worry about extra expenses arising from an unfortunate mishap. 

DM us on Twitter.

Scan out Plum Insurance here. 

Search further into group accident protection and group term life insurance.