Types Of Group Insurance
Group insurance is one such type of insurance plan that is designed to cover a particular group of people. This type of plan helps in reducing the risk of adverse selection because the individuals who are eligible to buy such coverage belong to that particular group for a reason rather than just a wish to buy an insurance policy. The advantages are both ways. Even the employer who buys a large volume of group insurance from an insurance company can then claim some sort of discounts resulting in cheap group rates.
The Main Characteristics
To be a part of the group insurance, one must have the following eligibilities, such as-
· The group of people who are going to be insured must have something in common and are not eligible on the ground that they just wish to buy an insurance policy.
· There is a Master Policy Holder, who actually holds all the documents related to the insurance, and on behalf of the insurer, he is eligible to deal with the members.
· Due to low administration cost, the insurance cover is generally available at a low rate compared to the individual rates.
Different Types
So, while in the case of a group insurance, there is a huge amount of employee benefits, which can be treated as an additional advantage apart from the salary. So, let us take a look at the different types of group insurance policies available.
1. Group Term Life Cover: For any employee working in a particular organization, under this policy, life coverage is insured for every member. The premium for the same is collected from the group owner, who deducts it from the salary of the employee working in that organization.
2. Group Health Cover: This is helpful in case of any unpredictable medical need of each group member. Apart from the emergency medical needed, this plan also covers pre-existing diseases and diagnosis cost if any. However, in certain group policies, the insurer also gets some additional benefits in the form of maternity expenses, dental checkups and in the case of visionary treatment too. But this may not be in the form of cash, rather a cashless transaction or medical reimbursement up to a certain limit.
3. Group Personal Accident Insurance Cover: During the tenure of employment, if any member meets with an accident, in such cases, the policy helps in compensating for the insured member.
4. Workers Compensation Insurance: Under Workers’ Compensation Act 1987, the policy covers all form of liabilities for the members. So, workers involved in a high risk fatal zone such as construction zone or manufacturing unit will be benefitted by this group insurance policy.
5. Group Pension: When you’re in your 60s, this form of policy is going to make you safe and secure. This will allow you an income on a monthly basis.
6. Public Liability Insurance: For groups working in direct public dealing or is providing professional services to an individual, this insurance covers expenses for any legal matter raised due to the results of their decision.
Group Travel Insurance: It covers all type of negative issues one may face while traveling, including compensation for theft or even health cover.
