A smart employer is one who looks after the well being of his employees. Today, every organization is treating its workforce as an asset and investing in employee benefit schemes to foster motivation and loyalty. Such initiatives also increase the productivity of employees. Availing employee benefits insurance such as group health insurance, group personal accident insurance, group term plan etc is a smart move by employers to provide a financial shield to employees against mishaps and medical emergencies.
Accidents can happen anytime, anywhere. The rate of accidents reported every year in India is alarming and should be acknowledged by the employer to ensure its workforce against personal accidents. As bodily injury is not the only outcome of an accident, sometimes an accident results in an unfortunate loss of life which creates a havoc for the family and dependents.
Group personal accident insurance is the best protection tool to mitigate the financial risk of medical expenses incurred due to an accident. The employee accident insurance policy provides a lump sum payment to the employee, in case of accidental death or permanent total disability due to an accident. Various other benefits are provided under the insurance plan.
Group personal accidents provide coverage against:
1. Accidental death: Accidental death benefit offers 100% coverage of sum insured which provides a lump sum amount to the legal dependent or family. This amount can be used by the family as an income replacement or to meet the other expenses such as child education.
2. Permanent total disability: Coverage for the permanent total disability such as loss of both limbs or eyes is provided under the GPA plan. Full sum insured coverage or a pre-specified coverage is been allotted to the insured under such cases.
3. Permanent partial disability: Coverage for the permanent partial disability such as loss of single limb is provided. A pre-specified amount mentioned in the policy term is availed to the insured.
4. Temporary total disability: Coverage for a temporary total disability such as spinal cord damage is also covered. Such disability needs a few days time to recover so the employee is unable to go to work, a fixed weekly benefit is paid in order to compensate for such a loss.
Some insurers also provide coverage for child education grant, accidental hospitalisation expenses of employees etc. One can also ask for add-on covers to widen the scope of coverage under the GPA plan.
Benefits of Group Personal Accident Insurance Plan for an employer:
1. Helps in retaining employees: Having employee benefit schemes such as GPA and GMC for your employees make you a responsible employer. Group accident insurance offers financial security to your employees as it covers unexpected expenses arising due to an unfortunate mishap. It covers accidents at home as well so the cover is not only restricted to the workplace. GPA insurance plan also decreases the employee attrition ratio and helps in retaining great talent in the company.
2. Attracts new talent: If you provide group personal accident policy to your employees, you are one step ahead in finding great new talent for your organization. Offering employee benefit schemes is a valuable attraction tool which magnetizes the job aspirants towards your organization.
3. Additional protection to employees: Group personal accident insurance cover is best purchased with group medical claim insurance plan. Today, employers are more concerned for the security of employees and providing the benefit of group health insurance is not sufficient as it does not cover accidental death and accidental injuries so in order to ensure overall protection of your employees, buying group accident policy is one of the best solutions and risk mitigation tool against unforeseen incidents.
4. Builds good reputation and credibility: Group personal accident is an employee welfare scheme. Providing this benefit to your employees add value to your reputation. As an employer, you should invest for the welfare of your people by providing comprehensive coverage of medical expenses related to accidents and ensure compensation to the dependents and family in case of an unfortunate accidental death.
5. Low-cost premium: The cost of this insurance plan is low and the limit of indemnity is high. For a large amount of sum insured, you have to pay a minimal amount of premium. The amount of sum assured is based on combinations of paygrade, designation, profile, department, annual compensation or marital status. Group personal accident insurance plan is the cheapest insurance product on the market which offers a high sum insured at a very low premium amount.
Providing employee welfare schemes such as Group health insurance and Group personal accident strengthens the relationship between employer and employees. It builds a positive image of the company. The employer is an accountable entity when his employees face mishaps and accidents during duty. Therefore, it is the responsibility of the employer to buy GPA insurance plan.
Buying group personal accident insurance not only makes you a smart but also a responsible employer and provides various indirect valuable benefits to your company.