A group personal accident insurance policy has the following characteristics:

  • Issued to a group of people with similar risk profile
  • Group can be formed by an employer (of employees), organisation, travel company, banks, and other service providers (for customers), etc.
  • The insurance covers the expenses and compensates the insured group members for any injury sustained in the course of their lives (except injuries obtained due to excluded causes)
  • Applies to the whole world
  • The general benefit includes the following:
    • Accidental Death
    • Medical Expenses arising out of accidents
    • Permanent total disability due to an accident
    • Permanent partial disability due to an accident

To know about the claim procedure in group personal accident insurance, see How the claim is processed under group personal accident insurance?

Case on Group Personal Accident Insurance

Personal Accident as an Employee Benefit

Mr. Bajaj owns a company which manufactures automobile spare parts. A total of 120 workers and employees work through this production process. Although the production is automated and machine oriented, the employees must be present at the time of production.

To offer compensation for any loss of human life due mishap or injury, Mr. Bajaj has purchased a group personal accident insurance for the entire workforce. Having a policy like this ensures that in the case of any event where an employee is involved in an accident within or outside the premises the employee or his/her family will be compensated for their loss.

Personal Accident Policy as a Facility

Minhaz Travels organises group vacations and tours. They always and compulsorily include group travel insurance cost in the tickets to compensate any traveller who loses baggage or meets with an accident while on tour.

Group travel policy includes personal accident insurance as well to provide for the hospital and emergency carriage expenses if anything untoward happens to any of the travellers.

Benefit of Group Personal Accident Cover to Employees

Gangaram Gupta, 27 years, is and HR executive at Indian Oil Corporation, he met with a road accident while driving back home on a weekend, and had been hospitalized for three weeks.

Thankfully the company has a group personal accident policy to support employees in such events. Gangaram’s hospital expenses were fully covered by the personal accident policy and the group health policy of the employer.

To know the additional benefits of a group personal accident policy, see What are the additional benefits available in the Group Personal Accident insurance?

Out of the total bill of Rs. 57,000, Gangaram only paid about Rs. 700 for some food he consumed from outside during his hospitalization. This total cost also includes the cost of ambulance used to carry him to the hospital from the site of the accident, and medicine cost as per the bills, after getting relieved from the hospital but while under recuperation.

Group Personal Accident Cover for High Flying Expats

One of the best features of the group personal accident policy is that it applies 24×7 throughout the world. Thus, even if your firm employs people who spend most of their time either in travelling or foreign locations, a personal accident policy benefits them across the world.

Considering how difficult it can be, for the person and his/her family members to cope with accidents on foreign soil, personal accident policy can be a great relief.

Shubhendu Chatterjee experienced the blessings of his employer’s group personal accident insurance when he was injured in a vehicle accident on a highway pileup while travelling for work in Spain.

He was hospitalized for ten days, and the insurance reduced his hospitalization cost by 70% for the same. He also received a weekly cash allowance and money to replace his clothes damaged or lost due to the accident.

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