The term Group Insurance refers to an insurance plan that covers a group of people, typically employees of a company or members of an association. The coverage benefits are determined by the policy statement issued to the employer or an association. The group insurance plan can be a health insurance policy, a life insurance policy, or any other type of personal insurance policy. Let’s take a look at the various types of group insurance plans available in India in this article.
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What exactly is Group Insurance?
A group insurance plan provides insurance for a group of people. Typically, an employer/association will choose this type of insurance plan to protect its employees or members. In India, various types of group insurance plans are available, including health insurance, personal accident insurance, travel insurance, and many others. There are also a few types of group insurance plans that provide life insurance. However, for the purposes of this article, let’s look at the insurance plans in the General Insurance category.
Groups of various kinds
Before delving into the various types of group insurance plans available in India, it’s important to understand the different types of groups that can benefit from a group insurance policy. There are two types of groups in India: Formal Groups and Informal Groups. The specifics of both types of groups are provided below.
Formal Groups (Employer-Employee): These are primarily companies or organizations in which the employer purchases the insurance plan to insure the employees of the organization.
Informal Groups (Non-employees): Members of cultural, social, or welfare organizations make up these groups. In most cases, the group administrator or head of the association purchases the group insurance policy to protect the members.
In India, the following types of group insurance plans are available:
1. Group Health Insurance/Medical Claim Protection
To provide health insurance coverage for employees, an employer purchases a Group Health Insurance Policy or Group Mediclaim Policy. It is one of the most common benefits that an employer provides to its employees. In some cases, the employee’s family members or dependents are covered by the Group Health Insurance Plan.
2. Personal Accident Insurance for Groups
The Group Personal Accident Insurance Plan functions in the same way that individual Personal Accident Insurance does. In this case, the employer or an association provides coverage to employees or members in order to protect them financially from expenses incurred as a result of an accident. Accidental injuries that result in hospitalization, disability (partial or permanent), or even death are covered by the insurance policy.
3. Insurance for Group Pensions/Superannuation
Group Pension or Superannuation Plans are designed to meet an employee’s retirement needs and are typically provided by an employer. It is also a viable alternative to popular retirement plans such as EPF (Employee Provident Fund) and NPS (National Pension Scheme) (National Pension System).
4. Employee Deposit-Linked Insurance for Groups (EDLI)
EPF (Employee Provident Fund) Group Employee Deposit Linked Insurance is a component of the EPF (Employee Provident Fund) scheme. The benefits of this plan are determined by the amount of money contributed by the employee to the provident fund. EPFO (Employee Provident Fund Organization) currently provides benefits worth up to Rs. 7 lakhs in the event of permanent disability or death.
5. Workers’ Compensation Insurance
Worker Compensation Insurance is a type of insurance that employers provide to their employees in accordance with the Employee Compensation Act, and it is governed by the Ministry of Labour. The insurance plan covers an employer’s statutory liabilities in the event of a worker’s injury or death caused by an accident on the job.
6. Travel Insurance for Groups
A Group Travel Insurance policy combines health, accident, and liability coverage. This plan protects a group of travelers against the risk of luggage loss, medical emergencies, accidents, and third-party liabilities. A Group Travel Insurance Plan isn’t just for a group of people who are traveling together. Employers, on the other hand, can purchase Group Travel Insurance for employees who travel frequently throughout the year. The premium for this plan is determined by the number of travel days in a year.
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7. General Liability Insurance
Businesses that deal with employees, clients, the general public, or agents can purchase Public Liability Insurance or Third-party Liability Insurance. The insurance policy covers third-party liabilities arising from third-party injury or property damage.
For example:
A customer visiting your office slips on the wet floor and breaks his or her ankle, necessitating hospitalization.
Such liabilities are covered by public liability insurance. This plan can shield your company from financial losses caused by third-party liabilities.
