Mr. Suresh Verma, a 35-year-old, was working as an IT professional in an MNC in Delhi for the last six years. Being tied up with office work, Suresh never knew what benefits his company’s personal accident insurance offered. He only knew that a certain amount of his income was deducted from his salary every month towards group personal accident insurance. However, he never bothered to know what group personal accident insurance is and what it offers.
Why is it important to understand group personal accident insurance
Unfortunately, one morning while going to the office, his motorcycle collided with a truck coming from the other side and the impact of the accident was so severe that he fractured his right hand. After the accident, he spent nearly two months at home. The accident not only impacted him physically but had a major impact on his finances also. He used all his savings to meet medical and household expenses. After two months, Mr. Verma fully recovered and rejoined the office. At the workplace, he was discussing the financial crisis, he faced after the accident, when one of his colleagues asked him, “Why did not you avail the benefit of group personal accident cover offered by the company?”
Mr. Verma already had a group personal accident policy, but he never made an effort to understand it in detail. Due to this ignorance, he spent all his personal savings on his medical and household expenses after the accident.
There are many people like Suresh, who are hardly aware of the benefits their corporate insurance policies provide and one such scheme is group personal accident insurance.
Let’s get into details to know more about the group personal accident insurance to avoid being in a situation that Mr. Verma had to go through.
What is group personal accident insurance?
Group personal accident policies are offered by firms, companies, or associations to their employees. The policy is bought by a company to cover the lives of its employees against accidental death or disability. As an employer, you can choose the benefits you want for employees, which can either be a flat amount or a multiple of the employee’s salary.
The Grim Reality
Life is unpredictable and in fact, life happens when you least expect it. So, what would happen if you meet with an accident on your way back home or you slip down the stairs and break your leg? Scary, isn’t it? What is even more frightening is seeing your family struggling if any of these situations happen to you.
More people die on Indian roads every day than in Maoist attacks or diseases. What’s more alarming is, Indian roads claimed the lives of 1.46 lakh citizens in 2015. It means, 17 deaths an hour and 400 per day!
How can group personal accident insurance help you?
If your company is offering you group personal accident cover, then you should cover yourself. Unlike other insurance policies, you don’t need to undergo medical tests to buy the policy. In most cases, the company offers a group personal accident policy free of cost, but even if the company is charging a premium; it is nominal.
The policy offers the following coverage:
| Primary Covers | Add-On Covers |
| Accidental Death | Repatriation Benefit |
| Temporary Total Disablement | Child Education Support |
| Permanent Total Disablement | Family Transportation Allowance |
| Permanent Partial Disablement | Modification/ Adaptation allowance |
| Temporary Total Disablement | Accidental Hospitalisation |
Further, in today’s corporate life, taking foreign work trips is a common trend. The policy is valid even if accidents occur in a foreign land. Also, it costs much less compared to individual policies.
Value-added benefits
Apart from the loss of income, looking at the endless periphery costs associated with an accidental disability, some insurers also offer value-added covers like the cost of transporting the body to the hospital/home or burial ground, the cost of MRI, X-rays, and cost of devices like a wheelchair, artificial arms, etc.
The policy can be further customized by paying extra premiums for an add-on like adventure sports, loan protector, EMI payment cover, hospital cash allowance, family transportation allowance, etc.
Exclusions of the policy
Some of the events which are not covered by a group personal accident cover are:
- Intentional acts
- Injuries from civil or foreign wars
- Accidents resulting due to drug or alcohol influence
- AIDS/HIV
- Injuries arise due to participation in unsafe sports
How to claim it?
In the case of an accident, the process is extremely simple and straightforward and is mentioned explicitly in the policy document. As it is a group insurance policy, you can inform your employer who will inform the insurer on your behalf and take care of the claim process.
In case you decide to approach the insurer directly, here is the standard process you can expect:
- You or someone claiming on your behalf need to inform the insurance company immediately or within the maximum time period mentioned in the policy document
- In case of accidental disability, consult the doctor and take steps to control the further impairment
- Submit the policy documents as mentioned in the policy wordings within a specified period
For instance, in case of permanent total disability or death, the following documents may be required to submit:
- Duly filled and signed claim forms from the policyholder or the assignee/legal heir
- Death or disability certificate from a doctor or as specified in the policy document
- Investigation reports supporting the disability
- Attested FIR copy
- Attested postmortem report, if any
Conclusion
Given the emotional, physical, and mental trauma for the person involved and loved ones at the time of an accident, it makes complete sense to have personal accident insurance to alleviate stress and provide the much-required financial assistance to the family.
Also, from the company’s point of view, group personal accident cover plays an important role.
As an employer, when you provide a group personal accident cover to your employees, you win their trust and confidence. In an increasingly competitive world, every company has to prepare itself for the unexpected. After all, no one can afford to lose people, whether to ailments or accidents.
Your employees are your valued asset and to demonstrate that you value them and their loved ones in case of a mishappening, it is advised to go for a group personal accident insurance cover.
Written By-
Gunjan Saxena
MBA Insurance Management
With a robust background in the insurance industry, Gunjan is a seasoned professional who brings 10 years of expertise to group personal accident insurance. Throughout her career, she has demonstrated a deep understanding of the intricacies and nuances of insurance products, particularly in personal accident coverage. Having worked closely with both individuals and businesses, she has gained valuable insights into the diverse needs and challenges faced by clients seeking insurance protection. Her experience encompasses designing tailored insurance solutions, providing expert advice, and guiding clients through the insurance process with confidence and clarity.
Through her articles, Gunjan aims to educate and inform readers about the importance of group personal accident insurance and the benefits it offers in safeguarding against unforeseen events.
