Introduction
For an employee-centric organisation, fostering an inclusive environment is crucial. The adoption of policies such as group health insurance has also become imperative to that end. A Group Personal Accident insurance policy is a step forward in this direction as it not only acts as a safety net for the employee but also the employer. To get a holistic view of how it does that, let us delve deeper into the features and benefits of the policy.
Features
Eligibility: A Group Personal Accident Insurance Policy is eligible for adoption by a club, a corporate body, association, firm, or institution. Any group with a similar risk profile is suitable for the policy. An employer can form such a group to capitalise on the dual objectives of employees’ psychological safety and save themselves from any unforeseen disruption.
Tenure: Generally, the policy period between commencement and expiration is one full year. Sometimes, it can also extend to 104 weeks or approximately two years.
Additional Benefits: In addition to its primary benefits, insurance providers may allow discounts directly proportional to the size of the group. For some plans, the insured is entitled to an educational fund for their dependent children in the case of disablement or death.
Process of Renewal: The policy may or may not be renewed by mutual consent every year. The renewal process under term is similar to any other insurance policy.
Benefits
The benefits of a Group Personal Accident Insurance Policy depend upon its scope of coverage, which can range from basic to comprehensive; some of which are:
Accidental Death: In the event of accidental death, the insurance provider pays the principal sum to their nominee(s).
Permanent total disability: An accident that results in permanent disability, extending 365 days, is entitled to compensation up to the ensured sum, a percentage of which is paid depending on the degree of incapability or the loss of limb.
Permanent Partial Disability: It is considered a permanent partial disability when the disability continues for 365 days. The compensation is paid as a percentage of the principal sum depending upon the nature of the disability.
Weekly Benefit: For a temporary period, the insured is entitled to weekly compensation if an accident results in permanent disability.
Ambulance Charges: If, on meeting with an accident, the insured needs to be taken to the hospital by an ambulance, then the ambulance charges are reimbursed by the insurance provider.
Mortal remains transportation: The policy reimburses the transportation cost of the deceased mortal’s stays from the accident site to their residence, hospital, cremation or burial ground.
Broken bones: In an accident leading to a fracture, the insurance providers pay a percentage of the insured sum depending on the bone. The doctor’s certificate coupled with an imaging investigation such as an X-Ray is mandatory. The percentage of compensation can range from 3% to 100%.
Medical Reimbursement: The policy allows for the reimbursement of any medical expenses. The entire claim amount, a percentage of it, or a fixed amount, whichever is lower, is admitted.
Education Benefit: If the accident proves fatal or leads to permanent disability, the education benefit entitles the victim to an educational fund for their dependent children. This case usually allows up to 50% of the insured sum with a maximum of two dependent children.
Widowhood cover: If the sole or direct cause of the insured employee’s death is the accident of their spouse, and the occurrence of the same is within 365 days during the policy period, then the insurer pays the sum insured under the widowhood cover.
Marriage Expenses for Children: The insurance company might also pay towards the marriage expenses of the unmarried dependent child/children in case of their death or permanent disability. The maximum liability, generally, is limited to the sum insured irrespective of the number of dependent children.
Conclusion:
As economies have taken a severe hit due to the pandemic, employees have realised the need to be part of organisations that provide them with financial and psychological stability. People high up in the organisational hierarchy should go the extra mile to develop a sense of belonging for their employees within the organisational framework.
The numerous benefits offered by a group term life insurance or group personal accident insurance policy not only act as a cushion for employees in times of great difficulty but also enable employers in employee retention. By adopting policies that benefit their employees in a way that they work towards maximising their potential and thereby promote the holistic growth of the organisation.
The Group Personal Accident Insurance policy by Plum Insurance has been structured to focus on value maximisation and cost minimisation. These policies are designed to keep the interests of the employer and the employee and offer 100% of the sum insured in the case of accidental deaths. Additionally, reimbursements for repatriation of the mortal remains, children’s education, medical expenses, funeral expenses, weekly compensations, and provisions in the case of permanent disabilities are comprehensively covered in the group personal accident policy. At Plum, the benefits far outweigh the cost, making the policies affordable and adding significant value to the customers.