Why Can You not Afford to Ignore Group Personal Accident Insurance?

Mr. Kapoor is into the real estate business and he recently undertook a construction project. A total of 100 workers and employees have been staffed in this project on site. Although the safety aspects are taken care of, he has even ensured that in case of any injury or mishap, the due compensation is paid to the workers or their family members. 

With this idea, he has taken a step ahead and bought a group personal accident insurance cover for his entire workforce. Since most of the workers are required to be present at the site, this becomes even more crucial for their safety. 

While Mr. Kapoor took a call for getting a group personal accident insurance cover for his employees early on – he did the following research before opting for a plan. Let us read on about the concerns which he had and the corresponding inferences:

  1. Who can opt for group personal accident insurance cover?
  2. Benefits and importance of the plan
  3. Certain key highlights regarding coverage of the policy

Group Personal Accident Insurance

This group policy can be availed by any and all types of organisations. With the growing risk surrounding each one of us, employers have taken a keen interest in the well-being of their employees. It is also essential to keep the morale aloft. Most of the public and private organisations these days opt for a group cover for all of their employees. Each employee as a part of the plan can avail the specified benefits. 

We all are in a phase of life where everything around us appears to be uncertain. We never know what could happen in the next minute that could turn things upside down. So, keeping that vulnerability in mind, organisations are making the necessary moves to help one maintain their savings and at the same time lower the burden of potential medical expenses. Nowadays, banks also insist on such group policies being taken as it reduces their risk in any eventuality.

Benefits and Importance:

  1. No prior health check-up needed

The plans do not require that the eligible person or their family members get a health check-up done pre-hand. In fact, it provides a thorough protection to the family/dependents against any liability arising out of any unforeseen circumstance. Death or disability are the two most dreaded consequences of an accident which could severely impact the lives of sole breadwinners and their family members. It could financially and emotionally drain them out to cope with such a loss. It is indeed in the best interests and to secure the future that employees are covered by such a plan.

  1. Applicable worldwide 

This plan applies 24X7 throughout the world. Many a times, employees are required to travel abroad for work or even spend substantial amount of time offshore. Also, as the employer understands how difficult it could be if anything goes wrong with an employee on foreign soil, it would be even more difficult for families to cope up with such a loss. 

One such incident happened where Mr. Kapoor, made sure his employee who was on a foreign assignment to close a client deal, was back on his feet after meeting with a road accident. 

His employee was bed-ridden for almost a month and luckily since the insurance plan was there, the expenses were covered to the extent of 60%. The expenses that were settled included the costs like medical bills, doctor’s consultation, room rent and meal allowance, ambulance charges that were used to carry him from the accident site to the hospital and also expenses incurred while he was recuperating after getting discharged from hospital. The insurance also helped to provide him with a weekly cash allowance providing great relief during these trying times. 

Here are some of the characteristics of such a group policy.

  • The group under this plan consists of employees having similar risk profile
  • The formation of the group could be done by either the employer, travel company, insurance providers etc. 
  • The costs of the exclusions will not be borne under the plan
  • The usual benefits of coverage here are:
    • Accidental death
    • Treatments required to be undergone as a consequence of an accident
    • Permanent or partial disability as a result of an accident 
  • 100% sum insured would be paid to the nominee in case of accidental deaths
  • Almost half of sum insured will be paid where there is partial disablement
  • In cases of temporary disability – a certain % of sum assured is paid – it depends and is decided by the insurance company
  • Heart attack and strokes are also covered in most of the plans
  • Coverage for burns or broken bones as a result of accident is also provided 

Importance:

  • It is the basic responsibility of the employers to protect and safeguard the interests of their employees – employee welfare is one of the crucial driving factors for several organisations
  • It ensures that the claims are settled as quickly as possible and the claim amount is immediately paid off to the nominee/family members. It helps to reduce the overall liability of the employers too as they do not have to bear the expenses 
  • It helps to enhance the organisation’s goodwill as this gesture to provide for group personal accident insurance cover reflects that the organisation cares for the well-being of the employees and considers them as an asset and irreplaceable part of the organisation. 
  • For the employees- it makes them feel valued and motivates them to work with more integrity, dedication, and sense of belonging to the organisation.

Key Highlights: 

  • The insurer bears the entire cost of transporting the mortal remains from the site of accident to the hospital / cremation ground / residence
  • Policy coverage lists that a lump sum amount will be paid for broken bones of the employee who met with an accident
  • Permanent disability really results in a shift in the future lifestyle. It demands a shift – for which the cost of the increased expenditure to some extent is provided as part of policy. As the existing heavy loss would have been difficult – financial assistance is provided. For example, if an employee requires any modification in his existing vehicle, then cost will be borne by the insurer. 

Conclusion:

Loss of human life is something which cannot be compensated – this is only a meagre offer to help pass through the difficult period in case of any event where an employee is unfortunately meeting with an accident either within or outside the premises of the employer. As the plan provides an extensive coverage to a large number of employees it is quite a comprehensive deal in itself. Also, a decent number of insurance companies provide the option of customisation of plans, wherein employers can take a note of the employees needs and wants and accordingly opt for a plan which is the most suitable to that particular reference group. 

Hence, considering all the above factors, one can say that a group personal accident cover is a must as we may not always be at the driver’s seat to manoeuvre our road i.e., life – what happens to us, but at the very least, we can take a step ahead and be in precaution mode.

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