The workforce is the backbone of any strong and successfully running organisation. Employees’ knowledge, skill, dedication, and commitment to the employer is an irreplaceable asset. Back home, the family members of the employees rely on them. Hence, it becomes crucial for employers to take good care of their employees in any unanticipated situations. Employee welfare programs thus play a critical role in the growth of any business that helps them protect their valued assets and retain talent. This program has a GPA insurance policy as a part of it.
GPA insurance policy or group accident policy is part of an employee welfare program that enables employers to shield their employees against unforeseen accidents. As the importance of employee welfare and risk management practices is growing in the corporate landscape, there is a rising demand for GPA insurance policies from enterprises. In this article, let us understand more about GPA policy, GPA coverage and why is it important for organisations.
What is a GPA insurance policy?
Group personal accident insurance provides financial protection to the members of the group such as employees against the losses arising from accidental death, injury, or disablement. Be it off-the-road or on-the-road, GPA insurance policy extends financial support to the policyholder or their family in case of death, injury, or disability caused by an accident. These policies typically provide coverage for the medical cost of treating an injury, death compensation, dismemberment, income replacement, rehabilitation costs for accidental disability, etc.
Reasons for the rising demand for GPA insurance policies from enterprise use
Within an enterprise setup, GPA insurance policy is gaining more grip due to various factors. Let us look at the reasons or factors that made these policies gain demand in enterprises.
Legal compliance
In some regions, availing of group insurance policies like group health cover, group term insurance, and group personal accident cover is mandatory for employers as per law. For example, group health insurance is made mandatory in India post-COVID-19 pandemic. Hence, depending on the laws applicable in the businesses’ jurisdiction, the employer needs to stay legally compliant by availing such coverages for their employees.
Employee protection
The primary reason for any enterprise to avail of the GPA insurance policy is to shield their employees in the event of unforeseen accidents. Having a GPA policy reflects employers’ commitment to employee welfare and builds trust among employees and their business partners.
Talent retention
Employee welfare programs like GPA insurance policies help enterprises retain talent. A customised policy with good benefits can attract employees and give them a sense of safety to continue with employer.
Risk management in GPA Insurance
Employees’ well-being is extremely important for the business productivity and growth. Hence, most of the enterprises understand the need for risk management. GPA insurance policy that gives financial protection to employees in challenging times is an effective tool to mitigate any potential risks. With the awareness of the need for risk mitigation, the demand for GPA policy is also increasing.
Affordable and accessible
Group personal accident coverage comes with more favourable terms and is designed for the needs of a group. Hence, the policy is cost-effective. Typically, the premium for such policies is borne by the employer in most of the cases. Easy accessibility and cost-effectiveness make it an attractive option for employees as well as employers.
Tailored to need
GPA insurance policies can be tailored to the needs of business. Enterprises can avail the coverage based on the type of accidents they need to include, coverage limitations, extent and the number of members to be covered, etc. Customisation is one of the reasons for enterprises to go for GPA insurance policies as they can avail of the coverage based on their need and affordability.
Remote work culture
Accidents can happen anywhere anytime. Hence, with the growing trend of remote work culture employers can ensure the well-being of their employees irrespective of their work location with GPA cover.
Conclusion
To sum up, a GPA insurance policy is crucial for enterprises to grow with a healthy and strong workforce. Organisations are now prioritising risk management practices, focusing on employee welfare and legal compliance. This is increasing the demand for the need of group personal accident coverage.
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.
