Group personal accident insurance is a health insurance plan that an employer purchases for their employees. It compensates for the death or disability of an insured employee due to an accident. It also covers permanent partial or total disability, temporary income loss, etc.
It helps cover hospital bills when the insured is undergoing any treatment procedure or compensates the family in case of the insured’s demise or loss of income. Here’s a complete guide to help you understand the need for and importance of group personal accident insurance.
What does Group Personal Accident Insurance Cover?
The coverage may vary based on the insurance provider and the plan chosen by an employer. Here are some of the basic coverages offered under a group personal accident insurance:
● Permanent Total Disability
If insured employees become totally and permanently disabled after an accident, they will receive compensation as per the amount decided when purchasing the policy. This amount helps cover the expenses of rehabilitation and maintain the employee’s quality of life.
● Accidental Death
If insured employees pass away in an accident, group personal accident insurance will cover their families financially. The nominees or beneficiaries can claim a lump sum amount as per the policy norms.
● Permanent Partial Disability
If insured employees become partially disabled due to an accident, a percentage of the total coverage amount will be provided to them depending on their disability.
● Temporary Total Disability
A regular income replacement benefit is offered to an insured employee if he loses the ability to work due to temporary disability. This helps cover the medical and living expenses of the employee and family.
● Medical Expenses
Health insurance plans for group personal accident, cover the expenses incurred in medical treatment of the insured employees. This includes injuries caused by an accident only.
How to Select a Suitable Group Personal Accident Insurance?
Here are some steps to follow while choosing the right group personal accident insurance:
1. Assess Your Employee’s Need
Employers need to assess the nature and risk of work to understand the needs of their employees. Broader coverage is essential for employees involved in high-risk jobs such as logistics and manufacturing. It is essential to consider the average age, total number of employees and their occupational hazards before finalising the coverage amount.
2. Compare Different Insurers
Before choosing a plan, consider comparing the plans, claim procedures, claim settlement ratios, and customer reviews of various insurance providers. Choose insurance companies that are reliable, transparent, and offer quick claim settlement.
3. Check the Coverage Options
Make sure the group personal accident insurance covers temporary total disability, permanent and partial disability, medical expenses, and accidental death caused by an accident. Some policies also come with add-ons like transportation expenses for family members or education expenses coverage for children.
4. Network Hospital
Select insurance companies that are empanelled with a wide network of hospitals, providing cashless treatment. This helps employees receive on-time medical assistance without any financial strain.
5. Customisable Plans
Choose plans that offer flexibility to adjust coverage limits, include or exclude benefits, etc. This helps align your policy with changing needs.
6. Claim Settlement
Check the claim procedure, documents required, etc., to avoid last-minute hassles while making a claim. Choose insurers with simple and efficient claim procedures to receive timely support during emergencies.
