Group Personal Accident

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Considering the rise in the number of accidents, many organisations offer group personal accident insurance to their employees. Companies either offer it at free of cost or charge nominal premium rates.

A group personal accident insurance is important for employees because of the following reasons=

  1. Gives financial security to family= The policy makes a payout to the family of a policyholder in case his/her death. It is a useful feature which ensures that the employee family’s future stays safe even after the death of the policyholder.
  2. Offers money to deal with medical expenses= Unless the accident is minor, the policyholder would have to live in the hospital for the medical treatment and for that, a considerable amount would be spent on the medical expenses. In case he has a group personal accident insurance, the insurer would offer financial coverage and cover medical expenses.
  3. 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 a household, medical, etc.; will remain same. In such cases, a group personal accident insurer would make a lump-sum payment which can be utilised to repay other expenses. This amount will act as a ‘loss of income.’
  4. 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 maximum 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 repercussion on his/her financial condition as well. In fact, the situation could turn to worse, if he/she is the breadwinner of the family. Here, a group personal accident insurance comes to the rescue of the employee.

Case: 1

From 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 severity of the accident was such that his bike got totally damaged. Some passersby took him to a nearby doctor where his treatment was started. The team of doctor did everything to save him, however, injuries were grave, and he died.

M.K Tech was offering a group personal accident 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 sustained 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. He was taken 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 paralysed.

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.