Group Personal Accident Insurance FAQ

Answers to the most common questions Indian employers, HR teams, and founders ask about group personal accident insurance. Covers fundamentals, coverage types (accidental death, permanent disability, temporary disability), sum insured, cost, claims, tax treatment, and how GPA compares with group health and group term life insurance.

Fundamentals

What is group personal accident insurance?

Group personal accident insurance is a single policy an employer buys to cover all eligible employees against accidental death, permanent disability, and temporary disability. The insurer pays a lump sum or weekly compensation to the employee or nominee if the covered event occurs. Cover is 24 hours a day, worldwide, and applies to accidents on or off duty.

Read more: What is group personal accident insurance? · What is GPA insurance?

What is GPA insurance?

GPA stands for group personal accident insurance. It is an employer-sponsored policy that pays a defined benefit if an insured employee suffers accidental death, permanent total disability, permanent partial disability, or temporary total disability. GPA is issued by a general insurance company and covers accidents only, not illness. Premium is paid annually by the employer.

Read more: What is GPA insurance?

How does group personal accident insurance work?

The employer buys a one-year renewable policy from a general insurer, defines the sum insured per employee, and pays the annual premium. If an insured employee has a covered accident, the insurer pays the benefit — full sum insured for accidental death or permanent total disability, a scheduled percentage for partial disability, and weekly compensation for temporary disability.

Read more: Need for group personal accident insurance and how to get it

What is the difference between group personal accident and individual personal accident insurance?

Group personal accident insurance is bought by an employer for all eligible employees under one master policy, without individual underwriting. Individual personal accident insurance is bought directly by a person for themselves, with medical and occupational underwriting. Group cover is cheaper per employee, ends when employment ends, and typically has higher combined sum insured than individual retail policies.

Read more: What is GPA insurance?

How is group personal accident insurance different from group health insurance?

Group health insurance pays hospitalisation and medical expenses for illness or accident. Group personal accident insurance pays a defined lump sum or weekly compensation on accidental death, permanent disability, or temporary disability. Health cover addresses medical bills; GPA addresses income loss and lump-sum protection. The two policies protect against different risks and are complementary.

Read more: How is group personal accident insurance different from group health insurance?

What is the difference between GPA and GMC (group mediclaim)?

Group mediclaim (GMC) is a health insurance policy that pays for hospitalisation, surgery, and medical expenses. Group personal accident (GPA) is an accident-only policy that pays a fixed lump sum on accidental death or disability and weekly compensation for temporary disability. GMC pays hospitals for treatment; GPA pays the employee or nominee for the loss itself.

Read more: Group mediclaim vs group personal accident: key differences · Understanding GPA and GMC insurance policies

Who is eligible for group personal accident insurance?

Any registered Indian entity with a minimum group size can buy group personal accident insurance. IRDAI defines a group as 7 or more members. Eligible members are full-time employees on the payroll, typically aged 18 to 70. Some policies also permit spouse and child cover as an add-on. Contract workers can be included as a separate schedule.

Read more: Who is eligible to buy group insurance?

What are the benefits of offering GPA insurance to employees?

GPA insurance protects an employee's family from income loss due to accidental death or disability, at a very low per-employee cost. Premium is a small fraction of group health insurance premium. It qualifies as a deductible business expense under Section 37(1) of the Income Tax Act, and it strengthens the total rewards package without significantly raising the benefits budget.

Read more: Need for group personal accident insurance and how to get it

Coverage

What does group personal accident insurance cover?

Group personal accident insurance covers four defined events: accidental death, permanent total disability, permanent partial disability, and temporary total disability. Cover applies 24 hours a day, worldwide, on and off duty. Optional add-ons include medical expense extension, ambulance charges, education benefit for children, and repatriation of remains. Cover is for accidents only, not illness.

Read more: What is group personal accident insurance?

What is accidental death benefit under GPA?

Accidental death benefit is the full sum insured paid as a lump sum to the employee's nominee if the insured dies as a result of an accident within a defined period after the accident, usually 12 months. Death from natural causes or illness is not covered under GPA. For that, employers offer group term life insurance separately.

Read more: What is group personal accident insurance?

What is permanent total disability (PTD) cover?

Permanent total disability cover pays 100% of the sum insured to the employee if an accident causes total permanent loss, defined by policy schedule. Standard PTD events include loss of both eyes, both hands, both feet, one eye and one hand, or one eye and one foot. Some policies extend this to permanent inability to engage in any occupation.

Read more: What is GPA insurance?

What is permanent partial disability (PPD) cover?

Permanent partial disability cover pays a percentage of the sum insured based on the policy's schedule of injury. Loss of one thumb pays 25%; loss of one eye pays 50%; loss of one hand or foot pays 50%. The exact schedule follows IRDAI's standard PA product wording, though insurers may vary the percentages. Payout is a lump sum.

Read more: What is GPA insurance?

What is temporary total disability (TTD) cover?

Temporary total disability cover pays a weekly compensation to the employee if an accident causes total but temporary inability to work. Standard payout is 1% of the sum insured per week or a capped amount, whichever is lower, for up to 100 weeks. TTD kicks in after a short waiting period, usually 7 days. It compensates for lost wages.

Read more: What is GPA insurance?

Does GPA cover medical expenses from an accident?

The base GPA policy does not cover medical expenses. Employers can add a medical extension rider that reimburses hospitalisation and treatment costs from a covered accident, typically capped at 10% to 40% of the sum insured. Where the employee also has group health insurance, the health policy typically covers accident-related hospitalisation without needing this rider.

Read more: Group mediclaim vs group personal accident: key differences

What is not covered under group personal accident insurance?

Standard exclusions include death or injury from suicide or self-inflicted harm, war and nuclear risks, criminal activity, adventure sports (skydiving, mountaineering), racing, drug or alcohol intoxication, pregnancy or childbirth complications, and pre-existing disabilities. Death from illness or natural causes is not covered, since GPA is an accident-only policy. Riders may add or waive specific exclusions.

Read more: What is GPA insurance?

Sum insured and cost

What is the typical sum insured in a GPA policy?

Typical sum insured ranges from ₹5 lakh to ₹50 lakh per employee, with most Indian companies at ₹10 lakh to ₹25 lakh. Common approaches include a flat amount per employee, 24 to 60 times monthly salary, or a multiple of annual CTC (2 to 5 times). Higher sum insured raises premium proportionally, but GPA remains one of the cheapest employee benefits.

Read more: Need for group personal accident insurance and how to get it

How much does group personal accident insurance cost per employee in India?

Group personal accident insurance costs around ₹100 to ₹500 per employee per year for ₹10 lakh to ₹25 lakh sum insured, depending on occupational risk and rider selection. It is the cheapest of the three standard corporate policies (group health, group term life, GPA). Even large sum insured amounts add only a small line item to the benefits budget.

Read more: What is GPA insurance?

How is the premium calculated for GPA insurance?

Insurers calculate premium as a percentage of sum insured, adjusted for the group's occupational risk classification (Class I sedentary office, Class II travel-heavy, Class III field or industrial), age distribution, prior claims experience, and rider selection. Class I workforces pay the lowest rates. Larger groups get better rates due to risk pooling.

Read more: How are group health insurance premiums calculated?

Claims

How do I file a group personal accident claim?

Notify the insurer or broker within the policy's stipulated notification period, usually 7 to 30 days from the accident. Submit the claim form, medical records, FIR or accident report, disability certificate (for disability claims), and death certificate (for death claims). The insurer verifies and pays the sum insured or scheduled percentage to the employee or nominee.

Read more: How to file a personal accident claim quickly and efficiently

What documents are required to file a GPA claim?

For accidental death: original death certificate, FIR, post-mortem report, nominee ID proof, and claim form. For permanent disability: medical records, disability certificate from a government or empanelled doctor, and claim form. For temporary disability: medical records, fitness certificate showing period of inability to work, and payroll certificate showing lost wages. Employer confirmation of employment is required in all cases.

Read more: How to file a personal accident claim quickly and efficiently

Tax and regulation

Is GPA premium a tax-deductible business expense?

Yes. Group personal accident insurance premium paid by an employer is a deductible business expense under Section 37(1) of the Income Tax Act, since it is incurred wholly and exclusively for business purposes as a staff welfare cost. The deduction reduces the company's taxable profit for the financial year in which the premium is paid.

Read more: Employer tax deduction for group health insurance premium in India

Is the payout from GPA taxable for the employee or nominee?

No, in most cases. Accidental death benefit paid to a nominee and permanent disability lump sums are treated as compensation for loss, not as income, so they are not taxed in the recipient's hands. Employer-paid GPA premium is not treated as a taxable perquisite in the employee's hands, since it is a pure risk cover with no accrued benefit.

Read more: Is employee health insurance taxable as a perquisite in India?

Employer decisions

Do employers need to offer both group health and group personal accident cover?

Not legally, but most Indian employers offer both because they protect against different risks. Group health covers medical bills for illness and accident; GPA pays a lump sum on accidental death or disability that group health does not. GPA premium is a small fraction of group health premium, so the marginal cost of adding it is low.

Read more: Do employers need to offer both group health and group personal accident cover?

Should a company offer GPA in addition to GTL?

Yes, in most cases. Group term life (GTL) pays only on death from any cause. GPA pays for accidental death (usually in addition to GTL, effectively doubling the accident payout), plus permanent disability and temporary disability compensation that GTL does not cover. Together, GTL and GPA provide comprehensive protection against loss of life or livelihood.

Read more: Should an employer offer group life insurance in addition to group health?

What is the minimum number of employees required for GPA insurance?

IRDAI defines a group as 7 or more members for group personal accident insurance. Some insurers accept smaller groups down to 5 lives, and a few micro-group products cover 3 or more. Startups and small companies with fewer than 7 employees may need to wait until headcount grows before qualifying for a standard group personal accident policy.

Read more: Minimum number of employees required for group health insurance in India

Buying and providers

Which insurers offer group personal accident insurance in India?

Leading GPA insurers in India include ICICI Lombard, HDFC ERGO, Bajaj Allianz, Tata AIG, Reliance General, SBI General, and Cholamandalam MS. Public sector options include New India Assurance and National Insurance. Product features, occupational risk classification, and rider menus vary. A broker like Plum places policies across major general insurers.

Read more: Top group health insurance providers in India: provider landscape 2026

How do I buy group personal accident insurance for my company?

Approach an IRDAI-licensed corporate broker or a general insurer's group business desk. Share employee count, occupational risk profile, and desired sum insured structure. Compare quotes on premium, rider options, and claim settlement record. Sign the proposal, pay premium, and receive the master policy. Employee onboarding happens through the broker's or insurer's HR portal.

Read more: Need for group personal accident insurance and how to get it