ImageGroup Insurance Policy - Benefits, Features, Coverage & Claim Process

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  • > The benefits of Group Insurance Policy
  • > Quick guide to Group Insurance
  • > Frequently Asked Questions
  • > Insuropedia
  • > Why SecureNow?

The Benefits of Group Insurance Policy

Superior Benefits

Several benefits provided under a group insurance plan are either not available in an individual insurance or are available with restrictions e.g., pre-existing diseases cover from day 1.

Low Cost

A group insurance plan leverages economies of scale to offer better coverage for a relatively lower premium than an individual insurance. Costs could be upto 50% lower than individual plans.

Customized cover

Group insurance plans allows a cdompany to customize insurance benefits. For example, you can cover maternity benefits in a group health insurance plan with or without a waiting period.

Easy Administration

Buying and maintaining a group insurance plan is siginificantly easier than managing multiple individual plans for employees. For example, waiver of medical underwriting for individuals.

Quick Guide to Group Insurance

Group Insurance

Group Insurance is a contract that covers a certain group of people under insurance coverage irrespective of age, gender, economic status, and so on. This plan aims to provide the same amount of insurance coverage to all people such as life insurance, health insurance, disability insurance and so on. This type of group insurance policy is usually opted by large organizations to provide insurance coverage for all of their employees. Dependents of covered members such as kids, spouses and other family members are also covered under group insurance.

Types of Group Insurance

There are different types of Group Insurance available that one can opt for, depending on their needs and requirements. In India, there are two main types of groups that can be benefitted from group insurance scheme:

  • Formal Groups - Formal groups are mostly companies and large organizations. Employers purchase group insurance plans for company‚Äôs employees.
  • Informal Groups - Informal groups, on the other hand, include members of social, cultural or welfare associations, where the group head buys the group insurance policy for all its members.

Classification of Group Insurance Plans

Group Insurance Plans can be classified on the basis of different criteria, such as, Type of Coverage, Financing Method, Group Size, Plan Design and Underwriting Method.

It can also be classified as Contributory and Non-contributory.

  • Non-Contributory - In Non-contributory Group Insurance plan, employees or group members do not need to pay the premium of insurance policy. It is rather paid for by the group head or employer.
  • Contributory - In this type of group insurance plan, Group members or employees pay the premium amount, either partially or fully, to ensure the benefits of the insurance cover.

Types of Group Insurance Plans Available in India

There are different types of group insurance plans available in India. Here, we have listed a few of them for your consideration.

Key Features of Group Insurance

The following are some of the key features of group insurance:

  • Every Employees and Group member is covered under group insurance plans long as he/she is the member of the group or organization.
  • It aims to provide insurance policy to large amounts of people at competitive premium rates.
  • Tax benefits can be available by the person who paying the insurance premiums.
  • It covers a large number of people under the same insurance policy.
  • Group Insurance plan has many types depending on the need of policy buyers such as group personal accident insurance plan, group health insurance plan, group term insurance, group travel insurance, group covid insurance plan and so on.

Why Group Insurance Needed?

Understanding the importance of group insurance is essential for anyone looking to protect themselves and their loved ones. Here are some reasons why group insurance may be necessary:

  • Cost-Effective - Group Insurance policies are generally less expensive than individual policies because the risk is spread across a larger group of people.
  • Attractive Employee Benefit - Group Insurance is a valuable employee benefit that can help companies attract and retain top talent.
  • Coverage for Pre-Existing Conditions - Group Insurance policies often provide coverage for pre-existing conditions that individual policies may exclude.
  • Comprehensive Coverage - Group Insurance policies typically offer comprehensive coverage for medical, dental, vision, and other benefits that are not always covered by individual policies.
  • Financial Security - Group Insurance can provide financial security to employees and their families in the event of unexpected illness, injury, or death.

Factors that affect Group Insurance Premium

Several key factors can influence the premium costs of group insurance policies. Here are some of the most important factors to keep in mind:

  • Group Size - The larger the group, the lower the premium. This is because the risk is spread across a larger pool of people.
  • Age and Health of Group Members - The age and health of the members in the group are significant factors that influence the premium. Groups with younger and healthier members typically pay lower premiums.
  • Occupation and Industry - The occupation and industry of the group members can also impact the premium. Groups in high-risk industries, such as construction or mining, may have to pay higher premiums.
  • Benefits and Coverage - The level of benefits and coverage offered under the policy also affects the premium. A policy with more extensive coverage will have a higher premium than a policy with limited coverage.
  • Claims History - The claims history of the group is also taken into consideration when determining the premium. If the group has a high claims history, the premium may increase.

Eligibility Criteria for Group Insurance

To be eligible for Group Insurance, certain criteria must be met. Here are some of the eligibility criteria for Group Insurance:

  • Group Size - A minimum number of members are required to form a group for insurance purposes. Generally, the group should have at least 10 members to qualify for Group Insurance.
  • Commonality - Members of the group must have a commonality such as working for the same employer, belonging to the same association, or having a similar profession.
  • Participation - All eligible members of the group must participate in the insurance plan to ensure that the risk is spread across the entire group.
  • Underwriting - Group Insurance policies may require underwriting to assess the risk involved in insuring the group.
  • Contribution - The premium for Group Insurance is usually shared between the employer and employees. The contribution must be made by all members of the group.

Group Insurance Premium Calculation

Group Insurance is a type of insurance policy that covers a group of people under a single policy. The premium for a Group Insurance Policy is calculated based on several factors, including:

  • The age and health of the group members
  • The level of benefits and coverage offered under the policy
  • The claims history of the group
  • The size of the group
  • The occupation and industry of the group members

To determine the premium, the insurance company will assess the level of risk involved in insuring the group. This risk assessment is based on the factors mentioned above. Generally, the larger the group and the younger and healthier the members, the lower the premium will be. On the other hand, if the group has a history of high claims or works in a high-risk industry, the premium may be higher.

Why Buy Group Insurance Online from SecureNow

SecureNow is one of the leading insurance brokers, where policy buyers can renew and buy their insurance policies online without any hassle. They aim to provide affordable and efficient risk insurance to small and medium business enterprises. Now, there are many reasons why you should buy group insurance online from SecureNow instead of other insurance brokers. We have mentioned some noteworthy distinctions below that will help you to make decision while choosing the Insurance broker for your business.

  • They provide skill guidance as they have a lot of insurance experts with years of experience. They can provide useful insights on which group insurance plan to choose as per your needs and requirements.
  • As they are professionals, whose expertise lies in insurance services across various industries and markets, they can guide you on insurance plans as per your industry and market.
  • Business possesses several risks. So, finding the best insurance policy that will cover all your risks is a bit tough. Well, no worries, our experts will help you with that, which will prevent you from overpaying.
  • Insurance Brokers negotiate with insurers to get the best deal out there for you and help you to secure the best price. Getting group insurance for such a large amount of people directly from insurer can be bit expensive.
  • With SecureNow, it has become much easier to file tax claims.

Frequently Asked Questions

Group Insurance is a type of insurance policy that provides coverage to a group of people, usually offered by employers to their employees. It is an effective way to provide cost-effective and comprehensive coverage to a large number of people.
Group Insurance works by pooling the risk of a group of people under a single policy. The premiums are paid by the employer and employees, and in the event of a covered claim, the benefits are paid out to the insured members.
To get Group Insurance, you need to be part of a group that is eligible for the insurance policy, such as an employee of a company that offers it as a benefit. Enrollment is typically done during an enrollment period, and coverage details should be reviewed before enrollment.
The main advantage of group insurance is that it is generally less expensive than individual policies because the risk is spread across a larger pool of people, making it a cost-effective way to provide coverage to a group.
Group Insurance Policies are generally used by employers for their employees. It is one of job perks and benefits offered by many companies that shows that an employer really cares about their employees. It also helps in employee retention.


How can I structure a Group Insurance Policy for employees?

Depending on the homogeneity of the group members the organization may even have to purchase different policies for different work groups in the organization. Employee compensation structure can follow any of the three approaches given below: Flat Structure: All employees are given a similar kind of cover, irrespective of their role
Read More

Can You Buy a Group Insurance Policy for Your Group/Association?

You can buy a group insurance if there are members who are gathered together with a common purpose or engage in a common activity. Further, there are some other guidelines that should be considered to buy a group insurance, like: 1. Most of the group insurance policies about the employer-employee However, the group insurance
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What is Relevant Information in Group Insurance Proposal?

The following information is considered relevant for a group insurance proposal:-
  • Nature of Business
  • Nature of Activities of Employees
  • Location of the workers
  • Age of Employees
  • Any previous or existing group insurance employees are covered with
  • Any other historical incident which indicates the kind of risk faced by
Read More

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Deep Product Knowledge

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Cost-effective Insurance

Works with all the leading insurers to discover the best price for most comprehensive features.

Quick Turnaround Time

Get cover note issued within 24 hours. All service requests are resolved in pre-defined TATs.

Strong Claims Support

Manage all aspects of claim including insurer, surveyor & TPA co-ordination, and documentation.

Value-Added Services

Receive risk diagnostic reports, themographic studies, policy analysis, and wellness programs.

Policy Administration System (PAM)

Access your insurance policies through single login; service requests, MIS, and renewal alerts.