Considering the rise in the number of accidents, many organizations offer group personal accident insurance to their employees. Companies either offer it free of cost or charge nominal premium rates.
Why is a group personal accident insurance important
A group personal accident insurance is important for employees because of the following reasons:
- Gives financial security to the family: The policy makes a payout to the family of a policyholder in case of his/her death. It is a useful feature that ensures that the employee’s family’s future stays safe even after the death of the policyholder.
- Offers money to deal with medical expenses: If the accident is major, then the insured may have to stay in the hospital for medical treatment and spend a considerable amount on medical expenses. A group’s personal accident insurance covers the expenses. It provides financial coverage to the insured.
- Covers for Loss of income: If God forbid, accident results in disability, temporary or permanent, there would be a loss of income. However, the other expenses, like household, medical, etc.; will remain the same. In such cases, the insurer of the group personal accident insurance makes a lump-sum payment. This payment can help the family meet the expenses. This amount will act as a ‘loss of income.’
- Minor accidents are covered: A group personal accident insurance doesn’t check the extent of injuries or severity of an accident. The policy covers all types of accidents, whether major or minor, like slipping on stairs, falling off a bicycle, etc.
Then there are some group personal accident insurance companies which also pay educational allowance for a maximum of two kids of the injured employee.
Accidents do not come with a prior announcement. And when an accident happens, it not only affects the victim physically, it has serious repercussions on his/her financial condition as well. In fact, the situation could turn worse, if he/she is the breadwinner of the family. Here, a group of personal accident insurance comes to the rescue of the employee.
Case Studies
Case: 1
For the last five years, Jeevan was working in M.K Tech as a senior engineer. He was living in Delhi with his wife and a two-year-old daughter. Being the breadwinner of the family, Jeevan was working hard to secure the future of his family. His company was also offering him a group personal accident insurance cover of Rs 5 lakh.
Read More: Why Group Personal Accidental Insurance?
Last year, when he was driving back to his house, his motorcycle hit a car coming from the wrong side. The accident was severe. His bike got totally damaged. Some passersby took him to a nearby doctor and he started his treatment. The team of doctors did everything to save him, however, his injuries were grave, and he died.
M.K Tech was offering GPA insurance cover to all its employees. As Jeevan died in the accident, the insurer came forward and paid compensation to his family. The sum insured was Rs 5 lakh, and the insurer paid the entire compensation to the family, which helped them sustain themselves even after Jeevan’s demise. Without group personal accident insurance cover, it would have been tough for Jeevan’s family to survive.
Case: 2
Rahul Saran was working with J.S Clothing Mill when he met with an accident. In a hurry to reach the office, Rahul’s car hit the truck, and he suffered serious head injuries. Passersby took him to the hospital where the medical test reports diagnosed a blood clot. Though the doctors operated and removed the clot; his right arm got permanently paralyzed.
Read More: What Is Not Covered Under Group Personal Accident Insurance?
As J.S Clothing Mill was offering a group personal accident insurance policy, Rahul’s wife informed the insurer who agreed to settle the claim. The insurer asked for documents like medical reports, etc.; and paid the compensation to cover both the medical expenses and loss of income as Rahul was unable to work after the accident.
Without group personal accident insurance, the situation would have been tough for Rahul and his family.
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.
