Insurance

Types of Group Insurance Plans in India

Introduction

Every employer wishes to choose the best group medical insurance policy for their employees. In India, we have many options to choose from when it comes to insurance plans. As mandated by the Government of India, a company with 20 or more employees must have a reasonable group insurance plan for its employees. This article will help you understand the various types of group insurance plans so you can decide on the most suitable option for your organization and needs.

There are seven types of group health insurance found in India:

  1. Group term life cover
  2. Group personal accident insurance cover
  3. Group travel insurance
  4. Group pension plans
  5. Public liability insurance

Let us look at each of these group insurance policies in detail to determine which one is suitable for your organization. It may so happen that you will have to opt for multiple plans in the case of larger organizations.

Group Medical Insurance: Types

Group Term Life Cover

As the most basic type of cover, this plan covers the life of the person(s) insured under the plan. Under this plan, a nominee must be created to whom the benefits would apply in case of the insured person dies while at work. The premium must be paid in lump sum by the employer, but it can be deducted from the employee’s salary on a monthly basis. The group term life cover includes the following features:

  1. The cover would be for a fixed period.
  2. It is offered as an annual term plan that can be renewed.
  3. The premium is usually very low.
  4. No health checkup is needed.

Group Health Cover

Group health insurance includes support during sickness and hospitalization. The plan offers a wide range of benefits when an employee falls sick or is admitted to a hospital. Major charges, such as hospitalization, ambulance fees, and medicinal charges, are covered under the group health cover. The following features make this plan appealing:

  1. It provides medical benefits to the insured member and their dependents, such as hospitalization costs and pre- and post-operational charges.
  2. It covers pre-existing diseases as well without any conditions.
  3. It covers maternity expenses and the expenses of the newborn baby from day one.
  4. The plan offers cash-free services across its network of hospitals.
  5. It might also include international consultation in many cases.

Group Personal Accident Insurance Cover

In companies that work in dangerous environments like manufacturing, the group personal accident insurance cover would be a good fit. It covers accidents that may lead to death or disability for a person covered under this policy. A certain amount of compensation will be given for the disability caused due to the accident. The plan also offers the following features:

  1. It helps the insured member or their family in case of death or disablement.
  2. Often, the coverage includes facilities across the globe.
  3. There are add-on features, such as health insurance, children’s education, and more, that can be added at lower prices.
  4. The employer can either choose an on-duty or off-duty cover.

Group Travel Insurance

Under group medical insurance, this plan is one that companies frequently use. Group travel insurance is a must for organizations that require their employees to travel often. The cover includes support for any unforeseen circumstances in case of medical emergencies. It also covers other incidents, like baggage loss, passport loss, flight delays, cancellation, etc. Some popular features of the group travel insurance policy are presented:

  1. It is available for domestic and international travel.
  2. The coverage includes a wide range of incidents, both medical and non-medical.
  3. It comes with a single sum covering all members on a floater basis.
  4. Since the coverage is global, a rescue can be carried out anywhere across the globe.

Group Pension Plans

If an organization would like to offer benefits to employees who have been loyal throughout their careers, then group pension plans are the perfect fit. They offer a variety of options that will help you provide pension to those who retire at the age of 60. The pension that they receive will help them lead a dignified life for the rest of their time on earth. It will boost employee morale and increase company loyalty.

Public Liability Insurance

If your business offers consultation services, a public liability insurance would be your safety net in case of differences in the original agreement. Many times, there would be many factors that are out of your control that could lead to damages and liabilities. However, having insurance for the same will provide you with peace of mind. You can operate your business with confidence and devote your time to client satisfaction, just as we at Plum Insurance do.

With the various types of group medical insurance plans discussed briefly, we hope you’ll be able to choose one that caters to your and your employees’ needs.