Part 1 - Basics
What is group personal accident insurance all about?
Group personal accident (GPA) insurance is a kind of insurance scheme specifically meant to safeguard employer-employee against bodily harm and physical injury occurring due to an accident. It also includes cover for disability expenses to the employee and death benefits to dependent family nominees in the case of loss of life.
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 insurance is right here to answer all of your questions.
Why is group personal accident insurance important?
Let us reword this question for you, why do you and your team need a group personal accident insurance policy? Accidents are bad, and we wish no one would ever have to go through them, but they exist in complete uncertainty. See, there is always a possibility that employees have had face-to-face contact with an accident. And we all know that a problematic accident can get up-close and personal.
Therefore, we want to introduce you to group personal accident insurance. Such a plan is the best forcefield against an incoming accident. Even better, multiple plan options provide financial cover against permanent or temporary disability caused by the incident. To make it more feasible for an employee's family members to be monetary worry-free and move on at peace, this plan will disburse compensation due to accidental disability or death of a worker.
As an additional benefit, when an employer purchases group personal accident insurance for the organization, all employees are covered under the master policy at zero expense to their salary. Yes, it is an excellent employee benefits programme that comes over and above your CTC.
Part 2 - Deep dive
Features of group personal accident insurance
Group accident insurance can be easily customised to meet your corporate strength. Here is a checklist of the advantages you must have.
Get suitable premium quotes on covering more numbers of employees. Many insurance groups offer substantial cover based on a higher number of workers.
You can avail of this policy based on a yearly tenure for an organisation.
Most insurance companies offer a good combination of group medical cover (GMC) plus group personal accident (GMC+GPA) coverage at a suitable premium.
This plan is meant to cover the medical expenses incurred if an employee gets into an accident or faces disablement.
A GPA policy covers total, partial and permanent disability caused by the accident.
Many policies provide a lump sum payout for taking care of the employee's growing children.
Benefits of group personal accident insurance
Accidental death coverage
100% lump sum amount is paid to the deceased employees' nominees and family.
Partial disability: permanent
If the partial disability caused by the accidental injury is over a period of 1 year, permanency will be applicable. A pre-defined percentage of the sum insured is paid.
Total disability: permanent
Permanent disability if 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.
This benefit is paid every week to the injured employee during the temporary period of disablement caused by the incident.
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 care 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.
Note: GPA = Group personal accident insurance (general insurance company limited). Many insurance companies in India provide GPA in different variants and options. The list above is the common set.
Part 3 - Final takeaways
Who is eligible for group accident insurance in India?
All types of large and small groups are allowed to purchase a group personal accident insurance cover for their employees.
In short, this extends to clubs, professional associations, academic institutions, employer-employee corporates, firms and banks.
Here's how group personal accident insurance is better with Plum
With Plum Insurance, you get access to an abundance of wellness benefits and a customised group accident insurance plan for your office teams.
In case of an untimely accident, we cover medical expenses up to 10% of the sum insured. We also work with India's top insurers to get your team the best coverage possible, up to Rs. 25 lakhs.
If an accident leads to an employee's death or disability, we assist them or their dependents in settlement of their sum insured.
At Plum, we understand that picking a policy can be taxing.
Keeping your needs and time in mind, we construct the right group personal accident cover and negotiate with insurers on your behalf.
We handhold you throughout the process and post onboarding, help you enrol employees swiftly, and our claims team assist your employees in navigating any emergencies.
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 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.
What are the 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 organization 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.
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 GPA cover. But the death benefits are paid to your family members.
Are there any permanent exclusions in a GPA plan?
Yes, here is the top list. Instances arising from war occurrence, radioactivity spill out, terrorism, criminal actions, civil hostility, and narcotics abuse are permanently excluded.
Does group accident insurance cover natural death?
No, GPA includes only accidental death and disability.
Are minor injuries covered under a group personal accident insurance plan?
No, GPA does not provide cover for minor injuries.
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.