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Advantages, Types & Coverage Of Group Personal Accident Insurance

4 min read

Accidents and injuries can have a devastating effect both physically and financially. Group personal accident insurance provided by the employer’s organisation goes a long way towards mitigating the hardships of a personal injury or an accident. An employer of an organisation, particularly a large manufacturing organisation, can protect his employees from workplace mishaps and injuries through such policies.

Advantages 

  • This policy is an assurance that the employer stands ready to protect the employees and their financial dependents in the event of a workplace injury or accident.
  • Employees retain high work motivation even under adverse conditions when they are covered by an insurance plan.
  • Such policies provide extensive coverage spread over a large pool of employees cost-effectively.
  • The digital claims process is very smooth and seamless.
  • There is 24X7 customer support available at Plum Insurance to help in the processing of claims.
  • Minimum paperwork and additional documentation requirements before completing the formalities and an online insurance policy document. Renewals can also be done conveniently.
  • There is no mandatory medical screening of employees before issuing the insurance policy.
  • The policy ensures all benefits such as disability, accidental death, ambulance, and other benefits available under the plan.

Types of policies 

  1. Individual Cover: If the employee is in a risk-prone job or faces a serious risk of injury or accident, insurance covers to afford protection to his family and his financial dependents if something unforeseen happens to him.
  2. Group Cover: This is an insurance policy taken by a large corporation to provide insurance cover to all the employees and protect them from work-related injuries, accidents, and other adverse events. This is in the form of a perquisite, as the employees derive financial protection from the insurance policy for their near and dear ones. A group policy coverage is quite extensive, and the employees are protected under most circumstances.

Coverage of the Group Personal Accident Insurance Policy

  1. Accidental Death Cover: In the event of the employee’s death in a work-related accident, the total sum assured is paid to his family /financial dependents/nominees.
  2. Permanent Total Disability Cover: If the accident or injury impairs the employee’s working for more than 12 months in succession, he/his family will be paid the total value of the sum assured
  3. Permanent partial disability: If the partial disability results from the accident for a continuous period of 12 months, the insurance company may pay a certain fixed sum based on a slab that contains gradations based on the injury level. Based on these grades, a certain fixed sum is paid.
  4. Medical reimbursement or hospitalisation charges for temporary injuries: A certain percentage of the total medical expenses are paid in some cases.
  5. Ambulance Charges: In case of severe juries where the injured employee has to be taken to hospital by ambulance, the ambulance charges and hospitalisation charges are met by the insurance company under the terms of the group personal accident insurance policy.
  6. Broken Bones: If broken bones result from the accident, the insurance company is liable to pay for the treatment under the policy terms.
  7. Changes in the lifestyle: In the case of permanent total disablement or permanent partial disablement of the employee, this may necessitate certain changes in the employee’s lifestyle. He may need to live on a lower floor, move to a building with an escalator, have changes made in his mode of transportation, etc. In all such cases, the insurance company reimburses the monetary cost up to a certain limit.
  8. In case of the death of the employee/policyholder, the insurance company pays for his children’s educational expenses up to a certain limit.
  9. Weekly income: Certain policies also pay for weekly income to the policyholder in case of permanent total disablement. This compensates for the loss of income and is usually paid for a temporary period.
  10. Transportation of mortal remains: In an unfortunate event if the employee’s death occurs, the mortal remains are transported to the family of the deceased at the insurance company’s cost.

Key Takeaways

If you are the owner of a startup, an MSME or a small-scale manufacturing unit, or even the Head of the Human Resources function, you would appreciate how much protection and peace of mind a group personal accident insurance cover would provide to the employees and their families. Apart from being a perquisite, they would appreciate the caring nature of the owner/management and feel a sense of belonging with the organisation. If the nature of official work is risky, the more the need for such a policy to protect employee interests. To retain key employees long-term and prevent employee attrition due to inadequate protection, it is better to opt for such a policy today.

Visit Plum insurance today. It is the difference between facing the liability for significant financial losses or prudently buying protection.

Plum Insurance is at your service with hassle-free digital claims processing, 24X7 support, and all-around insurance needs.

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