Group Personal Accident

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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 scheme can also be purchased by other groups who have some commonality of interest. It means, you can buy a group insurance policy, even if you are related to non-employer-employee groups like credit card holders, customers of a specific business, employee welfare associations, borrowers of a bank, etc. Also, professional associations or societies may also be come under a group, provided the manager/secretary/president in his capacity as an organizer enjoys authority from a majority of the groups to buy insurance on their behalf or is doing as a necessity for other matters, like bank buying group insurance on the life of its depositors.

In the case of employer-employee groups, the group insurance policy may be either contributory or non-contributory without any limitation on the contribution of an employer.

2. Your group should not be formed with a sole objective of availing insurance. As premium rates of group insurance schemes are cheaper, many people form a group to avail insurance. However, if this is the case, the insurer can refuse to issue a group policy. It is necessary to have a clear relationship between the member and the group manager for services which should not be related to buying insurance only. While, a homogenous group of people may think of buying insurance to enjoy lower premium costs, a person negotiating group rates and then searching for members to buy group policy will not be allowed to buy the policy.

3. The criteria of having the minimum number of employees vary from one insurer to another.

4. The entry into the group for individual members will be evenly defined either from a definite date like the next anniversary or the first of the following month or identifiable events like commencement of employment, date of sanction of loan, date of the travel, etc. Group insurance policy, will, however cease to exist if a member leaves the group except in those situations where it is explicitly mentioned that the person will get a group cover even after leaving the group, like after retirement.

Read More: What Is Covered Under Group Health Insurance?

Case: 1

MKM Engineering Company, a leading engineering company, is an associate company of MKM Group. Employing over 500 employees, the company has undertaken several challenges and prestigious projects across many firms in India and is today well-acclaimed for its high skills and reliability in various quality services. The company can buy a group health insurance policy for all its employees working in different offices pan India. To buy a group health insurance, they can either contact the group insurance company or take help of corporate insurance advisors like SecureNow. The company can get all new employees covered under its policy who may join the organisation after buying the group insurance policy. In case any employee leaves the organisation, it should be immediately notified to the insurance company so that their cover can be cancelled. MKM Engineering can also extend group cover to its retirees as well. For that, they should notify the insurance company and get it written in the policy document. The insurer may charge a slightly extra premium to cover retirees.

Case: 2

RSM Bank can buy a group personal accident insurance for all its credit card holders. The policy will ensure that in the case of accidental death or disability following an accident, a certain amount is paid to the nominee or credit card holder, respectively. To buy the policy, the bank has to ensure that it has the minimum number of members, which is a prerequisite for buying a group cover.

Read More: What benefits are available under Employee Group Health Insurance?

Case: 3

Jeevan Kumar has an interior business in Delhi. As his client base is spread across different countries, he frequently travels overseas for meeting clients and exploring business opportunities. Here, he can only buy an individual travel insurance to cover his overseas travelling. However, if he first approaches the group insurer to get premium quotes and then finds such people who frequently travel abroad to convince them to form a group and buy a group insurance policy, the insurer can refuse to issue a group policy.

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