Imagine the loss of an employee and the financial burden that comes with it. How would your company be affected if one of its employees were to get injured in the course of performing his duties? Would they be able to maintain business operations?
That is why companies are increasingly opting for group accident insurance policies. If an employee gets injured on the job, the group accident insurance policy pays for medical expenses and compensation for injuries/loss of wages caused by an accident insurance policy. Group accident insurance policy is ideal for large and medium-sized companies. It helps them cover expenses necessitated by accidental injuries sustained by their employees. Besides, it also has some tax benefits attached to it. Let’s understand all the key features of personal accident insurance policy and group accident insurance policies you need to know before deciding.
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What Is Group Personal Accident Insurance?
Group personal accident insurance is designed to protect its insureds against personal accidents. It is commonly known as group insurance and offers comprehensive coverage for death, disablement, medical expenses, and loss of income.
This form of insurance is available as personal accident insurance for employees, owners, and company board members. It also offers cover for hospitalisation expenses, medical expenses due to accident/ disablement, disability income, funeral expenses, and accidental death. In case of death due to an accident on the job, it also pays medical costs incurred by the insured person.
Besides financial protection, it offers peace of mind by ensuring workplace safety.
All companies need group personal accident insurance as it provides financial security in case of personal accidents.
Why is Group Accident Insurance Required?
– Group accident insurance is required to protect employees against accidental injuries resulting in death or disablement.
– These insurance policies cover the medical expenses of accident victims and their families and provide financial relief in case of death or disablement.
– Getting group personal accident insurance before travelling abroad is essential as it provides complete coverage in the event of death or disablement due to accidents occurring anywhere in the world.
– Some companies offer group personal accident insurance policies with benefits like medical reimbursement, hospitalisation, and funeral expenses per the policy tenure.
– It is a good idea to get a group personal accident insurance policy if you are an employee of a company, as it provides comprehensive protection against accidental disability and death without any hassle.
Key Features of Group Accidental Insurance Policy
A group personal accident insurance policy is a personal accident insurance policy for individuals. It is available to clubs, corporates, associations, institutions, and firms of any size.
This personal accident insurance policy offers a discount based on the size of the group insured. This personal accident insurance policy typically covers medical expenses arising out of accidental death or disablement, permanent total disability, temporary total disability, unintentional injury (including permanent partial disability), loss of income due to accident, and educational grant to children if the insured dies as a result of the accident.
The scope of cover for group personal accidental insurance policy also includes general accidental injury (excluding death), including medical expenses arising from accidental damage other than death.
With group personal accident insurance policies, private accident insurance companies offer protection against personal liability and medical expenses in case of accidental injuries. Thus, individuals must get personal accident insurance coverage before incurring any damages.
Benefits of Group Accident Insurance Policy
Group accident insurance is a form of insurance available to employees (by their employers) to cover expenses arising from accidental injuries at the workplace.
Common Group personal accident insurance benefits include accidental death cover and 100% lump sum payment to nominees and families of the deceased employee.
The accidental death cover will reimburse funeral expenses, medical expenses, loss of income, and other like costs if the insured dies due to an accident at work.
Group accident insurance benefits employers by providing employees with security and protection against unexpected risks. This allows them to focus on their job without worrying about health-related expenses. Additionally, group accident insurance reduces companies’ healthcare expenses by covering accidental injuries among its employees.
Apart from these benefits, group personal accident insurance offers several financial advantages, such as cost savings from discounts offered by insurance companies and reduced healthcare expenditures in case of hospitalisation.
Can I Avail Tax Benefits of Group Personal Accident Insurance?
Group personal accident insurance (GPA) typically does not offer tax benefits to the insured person, as the employer usually pays the premium. However, suppose an employer uses group accident insurance for compensation for accidental death, permanent total disability (PTD), or permanent partial disability (PPD). In that case, it can leverage tax benefits by showing the premium as business expenses on its taxes. Group personal accident insurance benefits may include compensation for accidental death, permanent total disability, and permanent partial disability.
Different policies offer varying levels of coverage, so it’s essential to speak with a relationship manager to get the best quotes from various insurers. Short-term insurance coverage may cover medical expenses until the policyholder can receive medical insurance benefits. In contrast, long-term coverage may cover hospital and medical expenses over a specified period. Whether you have group accident insurance or not, you have enough medical insurance to cover the costs after an accident.
You can protect your employees from accidental group injuries and group medical expenses with group personal accident insurance. It also gives you a cushion if someone gets injured. This insurance policy can reduce the risk of personal injury claims, claim costs, and legal expenses. Group accident insurance is the best option if you’re looking for private accident insurance. However, it would help if you compare several insurance companies’ group personal accident insurance policies before settling on one.