A successful organization is made with the efforts of its employees. They work efficiently together to take the organization to desired heights. Being the owner, it is your responsibility to work towards the welfare of your employees. You would realize that constant motivation is the key to the efficient work of any employee, whether a manager or a worker at the factory. You might think that if the employees do not get proper perks or hike in their salaries annually. They’re de-motivated leading to higher rates of attrition in the company. So, let’s know the 5 Group Policies which are a must for any Organization.
However, trust between the company and an employee does not just restrict to salary hikes.
It further extends to safety and security. How do you ensure that your employee will feel secure even if a long-term illness attacks him that drains half of his savings? As an employer, it becomes your obligation to help your employee in such unfortunate mishaps and help him feel secure.
You must thus avail of certain group insurance schemes to build a nucleus of trust with all your employees. This will help you secure talented ones for a long period of time as they would not wish to forego the security benefits that your organization is ready to provide.
Insurers provide a variety of group insurance schemes that can be purchased at discounted rates depending on the type and size of your organization.
The five group policies that must be availed by any organization are as follows:
Group Life Insurance:
A group life insurance policy helps the family of an employee in case of the latter demise. It gives financial security to the family and thus, gives peace of mind to employees as they know there is someone to take care of their family in their absence. Employers can also increase the sum assured of the members during the year due to salary hikes, promotions, or any other valid reasons, but the definition for the cover should not change for the group.
Group Health Insurance:
A group health insurance scheme is the most sought-after policy by any prospective employee. The group policy provides cover for past illness as well as a critical illness for the employee and his immediate family (spouse and children) from the first day of employment itself.
As opposed to an individual health insurance policy, a group policy can be a win-win situation for the employee. This is because there is no waiting period for any of the illnesses, he doesn’t have to pay the premium. Moreover, there are special benefits like maternity and child care ones that the employee automatically becomes eligible to avail in his position.
Workers’ Compensation Insurance Policy:
This policy covers the expenses for the employer if any worker meets with an accident at the business premises. Such cases can occur quite frequently, and these are not in one’s control. In order to cover medical expenses and legal liabilities arising in such situations, the workers’ compensation insurance policy can prove to be a source of great relief to the employers. The policy also covers any occupational diseases that a worker might suffer due to the conditions of his work. In certain cases, the employees who are unable to continue the same line of work due to the injury, provide them training and rehabilitation in some other area of work. This policy also covers such expenses for vocational rehabilitation. The policy is effective in providing legal liability coverage. This policy is a must for any employer who feels obligated for the safety and security of its workers.
Group Personal Accident Insurance:
This policy covers the medical expenses in case the insured loses any of the body parts, total or partial disability, or loss of pay due to inability to work. Some insurers also provide cover for injuries that the workers might suffer due to terrorist activity.
It will not cover any legal liability arising due to such incidents. However, it extends to cover any educational expenses of at least two school-going children who are dependent on the injured. It also covers the transport expenses of the family up to a certain limit.
Group Travel Insurance:
If your employees undertake foreign trips frequently for business purposes, a group travel insurance policy is a must. A group policy does not provide a fixed cover to the number of members. It assists the employees in any emergency like loss of luggage, trip cancellation, or medical issues. The cover may extend to personal trips of the employees as well for the days purchased under the group travel policy.
So, the above are some of the important group policies for any organization or business should have. Irrespective of the size and nature of the activity.