If you are looking for an affordable insurance plan that can provide appropriate coverage to your employees against unforeseen accidents, consider group personal accident policies. These policies often provide perks like group discounts and easy claim settlements. They allow business owners to save on their overall expenses and ensure that their workers are taken care of properly by providing them with the most effective and economical solutions for their medical expenses/accidents. This article offers a detailed description of a group personal accident insurance plan.
What is a Group Personal Accident Insurance Plan?
Companies that are always looking for methods to protect their employees from hazards that might result in death or permanent disability will find this insurance useful. The scheme is accessible to a business’s board of directors or owner in addition to its employees. Any salaried person’s life is greatly impacted by the wide range of benefits provided by the group personal accident plan.
The fatalities of road accidents have gone up by 10% from 347 in 2020 to 389 in 2021, wherein 43% of them were fatal in 2020 and 45% in 2021. This number is just for road accidents. The overall number of accidents has also gone up, thereby increasing the need for group accident insurance plans.
What is Covered Under a Group Personal Accident Policy?
A group personal accident insurance policy covers the following scenarios:
- Partial Permanent Disability
In case a policyholder meets a partial disability that results in a recovery period of 12 months or more, they will be considered as having sustained a permanent partial disability. They will be eligible for a claim under the group personal accident policy. Depending on the level of disability specified in the policy coverage, the insurance company will pay anywhere from 2% to 60% of the overall insured amount.
- Complete Permanent Disability
A complete permanent disability claim can be filed if the policyholder meets a total disability, resulting from an accident, and the recovery period is more than a year. Depending on the level of disability specified in the policy coverage, the insurance company will offer the insured sum as compensation. From this compensation amount, the policyholder can gain income and living expenses while they are recuperating.
- Accidental Death
One of the most significant benefits the policy provides is the accidental death benefit. The nominee who is listed as the beneficiary of the policyholder will be paid the principal amount as an accidental death payout in the event of the unfortunate demise of the insured in an accident.
- Broken Bones
Many insurance providers offer a lump sum compensation for broken bones resulting from an accident. If you have suffered a broken bone, you should be able to claim this compensation.
However, there is a specific table which refers to the percentage of compensation that you can claim, depending on the bone that has been broken.
For instance, if you break one arm or leg, you can claim 25% of the entire sum insured; the ankle, ribs and pelvis are allotted 10%, 50% and 100%, respectively. However, the percentages vary from one plan to another, and this figure will be listed in the policy’s coverage details.
- Reimbursement of Medical Expenses
A personal accident insurance policy also provides coverage for hospitalization. It’s best to protect yourself from unforeseen expenses such as medical bills, which can be enormous for those that suffer serious injuries and need to be hospitalized. With a certain maximum authorized, the reimbursement provided under this provision is often a set proportion of the total medical bill reported to the insurer.
- Transportation of Mortal Remains
The costs associated with transporting the mortal remains of a policyholder from the accident scene to their residence, any nearby hospital or a crematory are covered by the insurance company offering the group personal accident plan.
- Lifestyle Changes
If you are suffering from permanent disability and your expenses are increasing due to a change in lifestyle, there is a need to consider financial assistance from your insurance company. Some insurance companies provide comprehensive group personal accident plans to satisfy these criteria. These plans offer financial support for necessities such as car modifications.
What is Not Covered Under a Group Personal Accident Policy?
Here are some common exclusions under a group personal accident policy:
- Self-inflicted injuries are not covered under this insurance policy.
- Injuries sustained during illegal activities will not be compensated by the personal accident insurance provider
- The policy does not cover any injury which is sustained while the insured was in an intoxicated state.
- Any war damage will not be compensated.
- Any critical illness which is not listed in the policy document is not covered under the policy.
Why You Should Go For a Group Personal Accident Policy?
Regardless of how ambitious, hardworking and smart the employees are, life has its own set of unpredictable events that are unacceptable to anybody. Group personal accident policies provide protection against a variety of tragic circumstances that may result in death or permanent disability for the insured, as it acknowledges workers as the most valuable asset of any organization. Every corporate firm has a fundamental obligation to provide insurance coverage to shield its employees from these threatening situations.
If you want to maintain a healthy work environment, it is essential for a company to have good leadership and a high-quality work environment. When your company has a large number of employees, it can be helpful to protect them with group life insurance or group health insurance. This can help protect them and their families from the financial burden of the policyholder’s illness and/or accidental death. Offering a group insurance policy is an important factor in creating employee loyalty, satisfaction and retention.
By offering group personal accident insurance to your employees, you can give them the peace of mind that if anything unexpected were to happen, they would be covered. Likewise, it can protect your company from large financial losses and ensure that you support your employees and pay them back for everything they do. Employee benefits are a great way to show employees they are valued and appreciated and often do more than a raise can do, as it instils loyalty. Get the right type of policy with Plum Insurance and keep your employees secure and productive. It is a great quality for any business owner to possess.