Introduction
A group personal accident insurance policy is not just beneficial for the employees, but it is equally beneficial for an employer. Employees are an essential part of an organization. The organization’s responsibility is to provide them with an excellent working culture and show the employees that they are cared for. A group accident insurance can help the employer create a sense of belongingness for the employee. Many employers offer group accident insurance cover as a benefit to the employees for being associated with the organization.
Such benefits change the psychology of the employee, help them feel secure, and give them a sense of security and peace of mind, as financial support is provided to the employee’s family in case they meet with an unforeseen event.
Understanding group personal accident insurance policy
- A group personal accident insurance policy is an life insurance cover provided to employees by their employers. This policy provides financial assistance to the employees and their families in case of unforeseen demise of the employee or if they suffer from a permanent or temporary disability.
- This policy usually provides coverage for hospitalization expenses that may occur due to an accident.
- The major benefit of group accident insurance cover is that it provides monetary assistance to the employee’s family in case of an employee’s untimely demise during an accident while being enrolled at the company.
- This Policy is issued to the employer, who is the master contractor, and provided to every employee in the organization.
What does group accident insurance cover?
Usually, the coverage of group accidents depends on the term and conditions of the plan chosen by the employer. Some common coverages provided under a group accident insurance policy are mentioned below:
- Accidental Demise: Under the group accident insurance policy, a lump sum death benefit is provided to the employee’s family members in case of unforeseen demise of the employee during the policy tenure while they are still employed at the organization.
- Permanent Total Disability: In case the employee suffers a permanent total disability, the entire sum assured will be provided to the employee’s family, giving them financial assistance to take care of hospitalization expenses for the treatment.
- Cost of Ambulance: Under this group insurance policy, the cost of an ambulance is covered. In case the employee meets an accident and needs to be transported to the hospital for treatment, the cost of an ambulance shall be covered.
- Hospitalization Expenses: In case the employee suffers permanent total disability or partial temporary disability caused during an accident, the hospitalization expenses for the treatment of the disability shall be provided to the family of the employee.
- Permanent Partial Disability: In case the employee suffers partial disability caused during an accident, the employee will receive half of the entire sum assured.
Advantages of group personal accident insurance
An employee spends a lot of their time commuting, and an employer will always ensure the safety of the employee. Some employers offer conveyance to the employees. Some may group accident insurance cover for the employees as part of the employee benefits package to ensure employee safety. Some benefits of the group accident insurance policy are mentioned below:
A. For employers
Financial Assistance: Life is very uncertain. Anything can happen to anybody. Employers must make sure that employees feel safe and cared for if they meet an unforeseen, life-altering event such as an accident. A group accident insurance policy can help an employer ensure the employee’s safety. It also provides financial assistance to family members of the employees in case of unforeseen demise of the employee or if they suffer permanent total disability caused in an accident while being employed at the same organization.
Retention of Talent: Providing group accident insurance cover can help the employer increase talent retention in the organization. This insurance cover is not only beneficial for retaining the talent, but also creates a good reputation for the organization as an employee-centric employer in the market. This way, employers will be able to motivate the employees.
Employee’s Well-Being: Such insurance benefits act as an incentive for the employees and give them security and a sense of belongingness to the organization. It ultimately makes the employees happy-minded, which increases productivity. The employee will feel that the organization is putting effort into ensuring their well-being, increasing their loyalty towards the organization.
B. For employees
Peace of Mind: A group accident insurance policy provides peace of mind to the employee. With the help of the insurance cover offered by the employer, the employee will be able to ensure financial security of their loved ones in case of an accidental demise, or accidental permanent total disability.
Education Allowance: In case of an unforeseen demise of the employee caused in an accident, a financial and emotional burden may fall onto the family. Under some group accident insurance policies, education allowance for an employee’s child is provided in the absence of the employee.
Medical Expenses Reimbursement: Under this insurance cover, hospitalization expenses that may occur in case the employee suffers permanent disability or partial disability caused in an accident.
To Conclude
Many employers put safety of the employees as a top priority and a group personal accident insurance policy can help them achieve it. Employees are the most important part of an organization and thus must be protected by their employers. A group accident insurance policy is beneficial for both the employee and the employers.
