Group Personal Accident Insurance
In today's fast-paced & unpredictable world, ensuring safety and financial security for you and your team has never been more crucial.
One day your team member is ticking off tasks at work, and the next, an unforeseen accident can disrupt not just their work, but their entire life.
As an employer or a people leader, you might often find yourself wondering - "Is there a way to safeguard my team's wellbeing in the face of such uncertainty?"
The answer lies in the realm of Group Personal Accident Insurance.
- What Is Group Personal Accident Insurance?
- Why is Group Accidental Insurance Policy important?
- Key Features of Group Accident Insurance policy
- Benefits of Group Accident Insurance cover
- What does Group Personal Accident Insurance Policy cover?
- What does it not cover?
- Who is eligible for Group Accident Insurance in India?
- Buy Group Personal Accident Insurance from Plum
- How are Group Accidental Insurance policy premiums calculated?
- How to claim for Group Personal Accident Insurance?
- Documents required for Making a GPA Insurance claim
- FAQs
What is Group Personal Accident Insurance?
Group Personal Accident (GPA) Insurance is a type of employer-employee insurance policy designed to provide financial stability to a group of people, typically employees of a company, members of a society, or any other defined group, in the aftermath of an unfortunate accident.
While group health insurance (GMC) provides coverage for a broad range of health care services, group personal accident (GPA) insurance specifically covers accidents leading to death or disability. Here’s a longer read on the difference between GMC and GPA. A comprehensive employee benefits package might include both types of insurance to provide a fuller range of coverage.
If you are a chief human resource officer (CHRO), small business/MSME owner, or a co-founder of a fast-growing startup, your team probably clocks substantial hours to navigate the annual operating plan. But along the way, there come stages of financial anxiety, workplace distress and the uncertain life-harming lightning bolt of life!
Now, how will you go about protecting your team against such events? There is no need to fret. Plum is right here to answer all of your questions.
Why is Group Accidental Insurance policy important?
Accidents are unforeseen and inevitable.
In India, where bustling streets and hectic workplaces are the norm, they are unfortunately common. That's where Group Personal Accident Insurance comes in.
It shields employees, providing a safety net during tough times. Should an accident occur, the impact on a family's financial stability can be immense.
With group accident insurance, employees' loved ones won't bear that burden alone. It provides coverage for death, disablement, and hospitalisation caused by an accident, safeguarding the future of the insured's family.
Companies, too, benefit. Offering a group personal accident coverage not only enhances their reputation as a caring employer, but also bolsters employee morale and loyalty. Thus, this insurance is a win-win solution, protecting both employees and the company's image.
Because life is unpredictable, having a Group Accidental Insurance policy is a wise move. It's not just a policy—it's peace of mind.
Key Features of Group Accident Insurance policy
Here are the key features of Group Personal Accident Insurance:
Comprehensive Coverage
This insurance provides a wide net of protection. It covers accidental death, permanent or temporary disablement, and medical expenses.
Coverage for All Employees
All employees, regardless of their role or level in the organisation, are eligible for protection.
Flexible Sum Insured
The policy allows for flexibility in choosing the sum insured, making it adaptable to different needs and budgets.
Affordable Premiums
Group policies generally offer lower premiums than individual ones, making it a cost-effective choice.
Worldwide Protection
Some policies offer to ensure that your employees are protected across the globe, no matter where in the world an accident occurs.
Additional Benefits
Some Group Accidental Insurance policies often include added features like child education support, transportation of mortal remains, and funeral expenses.
Employee Morale Booster
Employers offering Group Accident insurance can often benefit as it strengthens employee morale and loyalty, contributing to a positive work environment.
Benefits of Group Accident Insurance cover
Here are some of the most common benefits of Group Personal Accident Insurance.
Accidental death coverage
In the unfortunate event of an employee's accidental death, this policy provides a death benefit. This sum helps to provide financial security to the bereaved family.
Permanent partial disability
If the partial disability caused by the accidental injury is over a period of 1 year, permanency will be applicable. A predefined percentage of the sum insured is paid.
Permanent total disability
Permanent disability is applicable if it continues over one month and leads to fixed challenges in the daily functioning of an employee. The sum insured will be paid per the loss of limb or incapability.
Road ambulance expense
The GPA cover will reimburse the cost of taking an injured employee to the hospital from the accident site.
Weekly compensation
The GPA plan also covers the cost of medical expenses for accidental injury at the hospital.
Hospitalization expenses
The GPA plan also covers the cost of medical expenses for accidental injury at the hospital.
Bone safety protection
Fractures can be physically and monetary demanding. Get a lump sum payout under a GPA in the case of broken bones due to the accident.
Transportation of mortal remains
An accident insurance policy will reimburse the cost of shifting the last remains of the deceased employee from the accident site or cremation grounds.
Child education benefit
This benefit is ideal for employees with children. The GPA insurer pays the cost of children's educational expenses in case of the death/permanent disability of the worker.
Medical Expense Coverage
Group Accident Insurance often covers medical expenses associated with an accident. This can include hospitalisation, surgery, medication, and even rehabilitation, easing the financial stress of recovery.
Funeral Expenses
Some plans also cover the cost of funeral expenses, further reducing the financial burden on the family during such a difficult time.
Ambulance Transportation Coverage
Group Accidental Insurance policy often covers the cost of ambulance transportation, ensuring that employees receive immediate medical attention when it's most crucial.
What does Group Personal Accident Insurance Policy cover?
Here are the key highlights on the coverage a Group Accidental Insurance policy offers:
Accidental death coverage
If an employee tragically passes away due to an accident, the policy pays a death benefit to the nominee or legal heir.
Permanent Total Disablement
If an accident causes an employee to be permanently and totally disabled, a benefit is paid out.
Permanent Partial Disablement
In case an accident leads to a permanent but partial disablement, a proportion of the sum insured is paid out.
Temporary Total Disablement
If an accident renders an employee temporarily unable to work, the policy provides weekly benefits.
Medical Expenses
The policy covers medical costs, including hospitalisation, medication, and treatment related to the accident.
Transportation of Mortal Remains
The cost of transporting the mortal remains of the deceased employee to their home is covered.
Funeral Expenses
The policy often provides a sum to help with the cost of funeral arrangements.
Child Education Support
Some policies offer a benefit to support the education of the insured's children in case of accidental death or permanent total disablement of the policyholder.
Ambulance Transportation
The policy typically covers the cost of ambulance services needed due to an accident.
Each of these elements provides crucial financial support in the event of an unexpected accident, providing peace of mind to employees and their families.
Exclusions in Group Personal Accident Insurance
Some typical exclusions in a Group Personal Accident Insurance Policy are:
Pre-existing Diseases
Any disability arising from a pre-existing disease or condition is usually not covered under the policy.
Intentional Self-Injury or Suicide
If the insured intentionally harms themselves or commits suicide, the policy typically doesn't cover these incidents.
War and Nuclear Risks
Accidents or injuries arising from war, invasion, act of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection, military or usurped power, and nuclear risks are usually excluded.
Criminal Acts
Injuries incurred while committing a criminal act or engaging in illegal activities are not covered.
Drug or Alcohol Influence
If an accident occurs under the influence of drugs or alcohol, the policy won't cover it.
Adventure Sports
Accidents resulting from participating in adventure sports like skydiving, bungee jumping, and others are often excluded.
Pregnancy or Childbirth
Complications or conditions arising from pregnancy or childbirth, including premature birth, aren't covered.
These exclusions highlight the instances where a Group Accidental Insurance Policy won't provide coverage. These might differ from one insurer to another. Thus, it’s important to read and understand the policy terms and conditions thoroughly before purchasing.
Who is eligible for Group Accident Insurance in India?
In India, eligibility for Group Personal Accident Insurance is fairly broad. Here are the primary criteria:
Accidental death coverage
100% lump sum amount is paid to the deceased employees' nominees and family.
Membership Groups
Groups where individuals are part of a membership or an association, such as trade unions, clubs, and societies, can avail of this coverage for their members.
Age Limit
The eligible age for coverage usually ranges from 18 to 65 years, but this can vary based on the insurance provider's rules.
Occupational Classification
Some insurers might classify occupations based on risk levels. The premium may vary depending on the risk associated with a particular occupation.
Remember, while the eligibility criteria are generally broad, specifics might differ from one insurance provider to another. Therefore, it's advisable to check with individual insurers for their unique eligibility requirements for Group Accidental Insurance policy.
Buy Group Personal Accident Insurance from Plum
At Plum, we understand that picking a policy can be taxing.
With the help of our insurance experts, you can get a quote for a comprehensive group personal accident policy within minutes.
How do we make your experience better at Plum?
- Instant premium quotes from Tier 1 insurers
- Comprehensive coverage plan
- Smooth onboarding process
- Dedicated claims team
- Easy-to-use app and dashboard for admins and employees
How are Group Accidental Insurance policy premiums calculated?
The calculation of premiums for Group Personal Accident Insurance can depend on various factors, including:
Group Size
The size of the group to be insured can significantly influence the premium. Generally, larger groups might get more favourable rates due to risk being spread over more individuals.
Risk Profile
The nature of work performed by the group plays a crucial role in premium calculation. Occupations with higher risks (like construction work) might attract higher premiums compared to low-risk occupations (like office work).
Sum Insured
The chosen sum insured also affects the premium. The higher the sum insured, the higher the premium will be.
Policy Terms and Extensions
The terms of the policy, including any optional extensions chosen, such as medical expenses cover, can influence the premium.
Age Distribution
The average age of the group members can affect premiums. Groups with a higher average age might see higher premiums due to increased risk of accidents and health issues.
Claims History
Insurers might also consider the past claims history of the group. If the group has a high incidence of claims, it might result in a higher premium.
Please note that premium calculation methods can vary from one insurer to another. Get in touch with our team at Plum to get more accurate information.
FAQs
What is Group Personal Accident Insurance?
Here are a few instances that are not included in your GPA plan. Intentional self-harm, suicide, maternity & childbirth-related, indulging in dangerous activities & extreme sports, pre-existing illnesses, military participation, STDs/HIV/AIDS, and more.
What are the factors that determine the Group Accident Insurance premium?
The factors that are taken into account while deciding the premium include occupational risk, sum insured, employment category etc. However, age and income are the secondary factors here.
What is not included in a group accident insurance policy?
Here are a few instances that are not included in your GPA plan. Intentional self-harm, suicide, maternity & childbirth-related, indulging in dangerous activities & extreme sports, pre-existing illnesses, military participation, STDs/HIV/AIDS, and more.
What are the additional benefits offered by a Group Accident Insurance plan?
Some of the additional benefits offered by Group Personal Accident Insurance plan include educational allowance in case of accidental death of the insured, family transportation, modification allowance and repatriation of mortal remains.
Do I need a Group Accident Insurance Plan if I already have health and life insurance?
While health insurance covers medical costs and life insurance provides for your family after your death, a Group Accident Insurance Plan specifically covers the financial impact of accidents. It can include compensation for income lost due to injury or disability, something not typically covered by health or life insurance.
Hence, having this additional coverage can offer more comprehensive protection, especially if you're in a high-risk profession.
Who is eligible for group accident insurance?
Group Accident Insurance is typically available to any formally recognized group. This can include employees of a company, bank employees, members of a society, club, or association, or participants in a group activity.
The specific eligibility criteria may vary between insurance providers, so it's advisable to check with them directly.
What is a permanent total disability?
Permanent disability refers to vision loss of both eyes, feet, hands, or one hand, one foot and paralysis causing disability.
What is a partial disability?
Partial disability refers to the loss of one eye, hearing of one ear, finger, toe, and more.
Can I avail income tax benefits under a group personal accident insurance plan?
There are no tax-saving benefits of having a GPA cover for employees. Only your organisation can avail tax benefits for the same in the form of business expenses.
Does group accident insurance cover accidents outside India?
Most of the insurance groups in India provide worldwide cover for accidental emergencies. But you must always check with your insurer first before making a claim.
How is GPA beneficial to an employer?
Taking care of the employees and their families is an excellent retention tool for organizations. This also boosts employee morale and productivity. The employer ensures that the family dependents of a deceased employee are financially taken care of with the help of a GPA scheme.
Do you need a pre-medical test for group accident insurance?
There is no requirement for a medical health check-up for a group personal accident plan.
Is my family included in the group personal accident cover?
No, only the employees are eligible for Group Accidental Insurance policy. But the death benefits are paid to your family members.
Are there any permanent exclusions in a GPA plan?
Taking care of the employees and their families is an excellent retention tool for organizations. This also boosts employee morale and productivity. The employer ensures that the family dependents of a deceased employee are financially taken care of with the help of a GPA scheme.
Does group accident insurance cover natural death?
No, GPA includes only accidental death and disability.
Are minor injuries covered under a group accidental insurance policy?
No, GPA does not provide cover for minor injuries.
How is Group Accidental Insurance Policy beneficial to an employer?
Taking care of the employees and their families is an excellent retention tool for organisations. This also boosts employee morale and productivity. The employer ensures that the family dependents of a deceased employee are financially taken care of with the help of a GPA scheme.
How is GPA beneficial to an employer?
Taking care of the employees and their families is an excellent retention tool for organizations. This also boosts employee morale and productivity. The employer ensures that the family dependents of a deceased employee are financially taken care of with the help of a GPA scheme.
What is GPA policy nomination?
A GPA (Group Personal Accident) policy nomination is the process of designating a person(s) who will receive the insurance benefits in the event of the policyholder's accidental death.
Is Group Personal Accident Insurance taxable?
Premiums paid for Group Personal Accident Insurance are generally considered a business expense and can be tax-deductible for the employer. However, any benefits received by the policyholder may be subject to taxes. It's always advisable to consult with a tax advisor for the most accurate information.
What is Group Personal Accident and Group Term Life Insurance?
Group Personal Accident Insurance provides financial compensation in case of accidental injuries, disability, or death within a group. Group Term Life Insurance, on the other hand, is a type of life insurance that provides coverage to a group of people, offering a death benefit if a policyholder dies during the policy term.
Is Group Accident Insurance mandatory?
Group Accident Insurance is not typically mandatory by law. However, some employers or organizations may require it as part of their safety and risk management protocols.
What is GMC & GPA?
GMC stands for Group Mediclaim Policy, which is a type of health insurance that covers a group of people, typically employees of an organization, for their medical expenses. GPA, or Group Personal Accident insurance, provides coverage to a group for accidents that result in injuries, disability, or death.
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