Following are the different types of group insurance policies available in India:
- Group Term Life Cover:This type of policy offers a life cover to each member (insured) working in the group (organisation). The premium is collected from the group owner which can be deducted from the salary of the employees on a monthly basis.
- Group Health Cover:The group medical cover is to meet the unpredictable medical needs of each group member. This plan also covers pre-existing diseases along with the diagnosis costs. In some cases, it covers the maternity expanses, visionary treatment, and dental checkups too. This may function in the form of cashless card form or the reimbursement of medical expense up to the limit specified.
- Group Personal Accident Insurance Cover:This policy compensates the insured group’s members in case they meet with an accident during their employment.
- Workers Compensation Insurance:This policy covers all the employer’s liabilities under the Workers’ Compensation Act 1987. Employers like the construction units and manufacturing hubs must have this insurance policy, as workers (even if the number is less than 20) operate at a high risk of a fatal accident which may follow the partial or even complete disablement of their own selves.
- Group Pension/Superannuation Plans:The pension plans are said to the best insurance cover because they promise the sense of safety and security. Something which promises a regular monthly income even after 60 is worth sharing the pride. There are different formats of a pension plan are the Provident fund, Gratuity, and Superannuation.
- Public Liability Insurance:This is suitable for groups which are involved in direct public dealing or provide professional services to individuals. Such individuals can be held responsible for the results of their decisions made while providing the service and may face legal scrutiny and penalties. This insurance covers such expenses incurred by the insured group or its members.
- Group Travel Insurance: Covers the hazards faced by travelers, including theft of documents and luggage. Can also include health cover for the group members.
Case for Types of Group Policies
Garg & Associates is one of the largest law firms in India offering services to clients across the country and legal sphere. The company employs more than 50 Lawyers across the country and has about 30 consultants associated with them at any time in the year.
The firm offers life and health covers for all its members and their families upon joining. The firm is considering a personal accident cover as well, after Dr. Jatin Chaudhary, a senior civil lawyer met with an accident and became permanently disabled. He had to transfer many of the cases to his partners due to his condition and there was no compensation mechanism for the income loss.
The firm also has a group superannuation plan for its members and employees which ensures that employees can self-sustain after retirement. The firm has strict policies and protocols and advises utmost care and diligence in its dealings with clients but for any eventuality, they have insured with Public liability insurance.