What is Group insurance?

A Group Health Insurance Policy is a type of health insurance plan that covers for a group of people who work under the same organization. This is often offered as a valuable benefit for employees as the premium for the same is borne by the employer. However, the price for the same is comparatively a lot lesser as compared to individual health insurance plans and also benefits employers in tax reductions, therefore making it beneficial for both the employer and employee.

Types of Group Insurance Policy

• Group Term Life Cover: This type of policy offers a life cover to each member (insured) working in the group (organisation). The premium is collected from the group owner which can be deducted from the salary of the employees on a monthly basis.
• Group Health Cover: The group medical cover is to meet the unpredictable medical needs of each group member. This plan also covers pre-existing diseases along with the diagnosis costs. In some cases, it covers the maternity expanses, visionary treatment, and dental check-ups too. This may function in the form of cashless card form or the reimbursement of medical expense up to the limit specified.
• Group Personal Accident Insurance Cover: This policy compensates the insured group’s members in case they meet with an accident during their employment.
• Workers Compensation Insurance: This policy covers all the employer’s liabilities under the Workers’ Compensation Act 1987. Employers like the construction units and manufacturing hubs must have this insurance policy, as workers (even if the number is less than 20) operate at a high risk of a fatal accident which may follow the partial or even complete disablement of their own selves.
• Group Pension/Superannuation Plans: The pension plans are said to the best insurance cover because they promise the sense of safety and security. Something which promises a regular monthly income even after 60 is worth sharing the pride. There are different formats of a pension plan are the Provident fund, Gratuity, and Superannuation.
• Public Liability Insurance: This is suitable for groups which are involved in direct public dealing or provide professional services to individuals. Such individuals can be held responsible for the results of their decisions made while providing the service and may face legal scrutiny and penalties. This insurance covers such expenses incurred by the insured group or its members.
• Group Travel Insurance: Covers the hazards faced by travellers, including theft of documents and luggage. Can also include health cover for the group members.