Group Personal Accident

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Employees are one of your biggest assets as your success depends on them. While, you have bought group term insurance and group health insurance to give financial security to their families after their death and also cover them against rising medical expenses, what if they don’t die but become disabled?

To combat such issues, it is imperative to buy a group personal accident insurance policy for your employees. The policy will offer cover in case your employee dies in an accident or becomes disabled.

By paying an extra premium, you can offer children an education allowance under your group personal accident insurance policy as well.

As per this benefit, in the event of death or permanent total disability of the employee due to an accident, the group personal accident insurer will provide an education compensation fund for a maximum of two dependent children. For instance, some group personal accident insurers offer 50% of the sum insured as children education allowance subject to a maximum of Rs 15,000.

Some group personal accident insurers offer children education allowance in the form of tuition benefits. In the case of accidental death, 10% of the sum insured or the actual tuition fees charged by the educational institution, whichever is lower, is paid in the form of children’s education benefits.

However, the insurer offers children education allowance only if such a dependent child is pursuing an education course as a full-time student in the education institute.

It is an advantageous feature that ensures that the death or disability of the employee doesn’t affect the education of his/her child.

Case: children education allowance in GPA policy

Living in Delhi with his wife, Megha, and 15-year-old son Anvit, Raghav was a happy man. On a professional front, he was working in an IT company for the last ten years as a senior software engineer.

Considering the fact that his family was solely dependent on his earnings, Raghav bought a term insurance policy and health insurance policy as well. Completing the financial security net was the group personal accident insurance policy offered by his employer.

Armed with all these policies, he was confident that his family’s future was secure. However, life was not hunky-dory, and one day, when he was returning home in his car, he collided with a truck coming from the wrong side.

Read More: What is group personal accident insurance?

The impact of the collision was so severe that both the truck driver and Raghav suffered serious injuries. Raghav’s head was punctured through a hole in the car’s windshield and he suffered traumatic brain surgery. The accident occurred on a highway where traffic was less.

When after an hour, another truck passed by the spot, its driver spotted the accident, called the police, and took both victims to the hospital. Unfortunately, the injured truck driver was declared dead on arrival, while Raghav was immediately operated upon.

Doctors saved Raghav’s life, however, due to his brain injury, he became permanently disabled.

Being a breadwinner of the family, Raghav’s family’s future was in the dark. It was both emotional and financial losses for Megha who now had to make arrangements to deal with the medical expenses of Raghav and household expenses.

When Raghav’s employer came to know about his accident, the company came forward to help him. Due to the accident, Raghav was permanently disabled, and his employer’s personal accident insurance policy paid the compensation to him.

Read More: How the claim is processed under group personal accident insurance?

Further, his group personal accident insurance had an extra benefit in the form of children’s education allowance. As per the benefit, the insurer paid an education allowance to Raghav’s son, Anvit who just got admission in the regular course of engineering in a college. In this case, the insurer paid 50% of the sum insured as education allowance. As the sum insured was Rs 500,000, Anvit got Rs 2,50,000 (50% of 5,00,000)

Due to disability, Raghav lost his income power, but the education allowance paid by the group insurer helped in meeting education expenses of his child.

Without group personal accident insurance and children education allowance, Raghav and Megha would have a difficult time dealing with household and Anvit’s education expenses.