Why Is Group Personal Accident Insurance Important?
Approximately 4.8% of deaths in India are caused due to an accident and as an employee, a major time spent by an individual goes into commuting. Keeping this in mind, employers have started offering insurance cover to their employers. Many employers, irrespective of the scale, offer several benefits to the employees for being a part of the organization, one of the benefits being group accident insurance benefits.
This type of insurance cover is beneficial for employers who are always on the lookout for ways to protect their employees from the uncertainties of life, such as permanent disability or demise that may occur during an accident. This type of group insurance cover is available for both the employees and members of an organization. The employer’s group insurance coverage plays a vital role in an employee’s mindset about the organization.
What is group accident insurance?
A group personal accident insurance policy is a group insurance cover provided to the employees by their employers. This type of insurance policy generally includes coverage for hospitalization expenses that may arise due to permanent or temporary disability of the employee during an accident and provides financial assistance to the employee’s family in case of unforeseen demise of the employee caused by an accident.
The key benefit of a group accident insurance policy is that it provides a monetary benefit to the family of the employees in case of an untimely demise of the employee during an accident while being enrolled at the company.
Key highlights of group accident personal accident insurance policy
Some key highlights of the group personal accident insurance policy are mentioned below:
- This insurance cover provides coverage for all the hospital expenses that may arise due to an accident.
- In case of accidental demise of the employee, 100% of the sum assured shall be provided to the family of the employee.
- In case the employee loses a vital limb, the entire sum assured shall be provided
- In the case of partial disability, 50% of the assured sum is paid.
- A pre-fixed percentage of the entire sum assured will be paid in case of temporary disability.
Need of a group personal accident insurance
An employee spends a lot of their time commuting. Things may have changed now due to the COVID-19 outbreak, but it’s inevitable that offices will start calling in employees regularly. An employer will always look out for ways in which they can ensure safety of their employees, and one of them is group accident insurance policy.
Why is there a requirement of group personal accident insurance?
- Financial Stability: Accidents are very uncertain, it could happen to anybody, anywhere. It is an employer’s responsibility to make the employees feel secure and cared for in case of an accident. This can be done with the help of a group personal accident insurance policy. It provides financial stability for the employees and their families, in case of unforeseen events, such as accidents.
- Retention of Employees: Providing group personal accident insurance cover to your employees is beneficial for retaining employees and also helps the organization establish itself as a responsible leader in the market. This way, the employer will ensure that the employees are motivated to work and maintain loyalty toward the company.
- Employee’s Well-Being: Offering such insurance benefits to employees is very beneficial. It gives them a sense of belongingness to the company and ensures that their well-being is a concern for the employer. Ultimately, your employees will feel motivated and happy, which increases productivity.
Importance of group personal accident insurance
- A group personal accident insurance policy helps the employer ensure the safety of the employees. It makes employees feel important. The employees can avail protection against several types of unforeseen events that may cause death or permanent disability.
- This insurance policy assures the employee that their loved ones will not be financially bothered in case of unforeseen demise of the employee during an accident or if they suffer permanent disability. The claim is settled quickly under this policy, giving the monetary help that the family or the loved ones may require. It also decreases the liability burden, as the policy covers all the expenses incurred if the employee meets an unforeseen event, such as an accident.
- A group personal accident insurance is very beneficial for the company’s reputation as it portrays a good image among the employees. It shows that the employer is concerned about the well-being of employees and will take measures to ensure the safety of the employees. This type of insurance policy is a perfect solution that ensures the safety of the employees from the uncertainties of life.
Conclusion
Group accident insurance is a package issued to employees, who later provide it to the employees. Many companies offer such insurance benefits to their employees and members to ensure the employee’s safety at all times. An employee spends a lot of time commuting. Given the uncertainty of life, anything can happen to anyone. An employer provides this insurance coverage as a benefit to their employee as a safety net that will offer financial assistance during such unforeseen events.
