Buying group personal accident insurance is an important employee benefits decision of the employer. Although it does not provide any financial benefit to the employer it offers a sense of financial security to employees against unforeseen incidents like accidents.
Various factors need to be taken into consideration in order to avail the best group personal accident insurance. Navigate through the following tips provided by insurance experts and ensure a best GPA insurance plan:
1. Always opt for wider coverage: The risk coverage for accidental death, accidental permanent total disability such as loss of both limbs, permanent temporary disability such as loss of one limb, and temporary total disability such as spinal cord damage or a fracture due to an unfortunate event of accident are covered under group personal accident insurance plan. Some insurers also provide child education grant, terrorism damage cover at the minimal extra amount. So before buying the GPA plan, always check out the terms of policy and ensure maximum benefit coverage in your policy.
2. Keep a check on sub-limits: There are capping and sub-limit applicable on different coverage benefit so always ask your insurer or broker to give a detailed view of sub-limits. In case of temporary total disability, the payout of accident policy may be a weekly compensation of 1 per cent of sum insured for up to 100 weeks or a fixed amount depending on the type of policy. Permanent partial disablement such as loss of vision in one eye, knee injury or nerve damage etc is covered only as per the sub-limit that can exist between 50 to 100% depending upon the terms of policy.
3. Ensure an optimum sum insured amount: It is important to opt for an optimum sum insured amount. The sum assured of group personal accident for each employee can be set based on combinations of paygrade, designation, profile, department, annual compensation or marital status. You can also opt for graded sum insured for employee accident insurance. The focus should not be on cost reduction in premium amount but an optimum sum insured should be there in order to handle unplanned expenses and probable risk exposures. An optimum sum insured can benefit the insured in the times of need.
4. Keep an eye on add-on covers: There are many add-on covers that can be included in the group personal accident insurance plan. Extensions such as children education, ambulance charges, funeral expenses, transportation of mortal remains etc are availed by paying an additional premium amount. One should look out for the risk areas and perils against which insurance coverage is required. For example, being an employee, terrorism, sea-perils, and road accident could be the probable risk exposures as per the occupancy so these add-on cover can be included in the group accidental insurance plan.
5. Analyse the premium cost: While buying group personal accident insurance plan, the premium is one of the most important factors for an employer to consider in his insurance portfolio. Premium amount is determined on the basis of the occupation of the employee, sum insured, group size and claims history. For high-risk jobs, such as drivers, pilots etc high premium amount is charged. One has to negotiate with the insurer for low premium rate by purchasing the insurance policy for multiple years or by negating the non-essential coverage in the policy.
One should always consider buying group personal accident insurance plan with employee health plan as insurers usually lower down the premium rates in such case. Also, before buying the policy, always take quotes from different insurers and asses the coverage provided under the limit of sum insured and opt the cost-effective plan which offers broader coverage.
Always, read the list of exclusions: No matter, how comprehensive your group personal accident insurance coverage is, always know the cases where you are not covered. Every policy terms have the list of exclusions. Some major exclusions are a natural death, self-inflicted injuries, intoxication, death or injury due to HIV or any sexually transmitted diseases, due to war and participation in criminal acts, while engaging in an adventure sport or hazardous activity, due to pregnancy including childbirth, miscarriage, abortion, or complication arising therefrom etc. One should check with the insurer which all exclusions can be included in the GPA policy as add-on covers by paying the extra premium.
Assess the group personal accident insurance plans provided by different insurers under the lens of provided tips and ensure wider coverage at the low-cost premium. Let your employees work with greater confidence and financial security which ultimately provides the fruitful result to your organization. GPA plan can work as an effective retention tool and a motivating factor for employees. It creates a win-win scenario for both the employer and employees.