In India, group insurance plans are gaining rapid popularity, especially after the worldwide pandemic outbreak. A group insurance plan is basically an exclusive plan that covers a group of people, be it large or small, within the scope of a single plan. Business organisations buy these types of plans to offer coverage to their members. All the members who enjoy this kind of coverage are technically termed as a ‘group’. There are various companies that deal with group plans. In this article, we will discuss some major corporate group insurance, India companies.
Types of Groups
As per the current IRDAI guidelines, a ‘group’ can be either a formal group or an informal group.
- Formal Group: A formal group is termed a group between the employer and the employee. Here, the employer buys insurance plans for the employees and offers them relevant coverage.
As employees are considered indispensable and the most important assets to any organization, it is the responsibility of the organization to take care of them. It is also a popular tactic to attract the best of talents and enhance the chances of business expansion.
- Informal Group: it is a group of non-employer and non-employee. Under such circumstances, the group administrator secures the members of the concerned organization along with their loved ones. For financial institutions like banks, you may wish to enjoy the coverage of credit card debts, non-payment of loans, etc.
Advantages of group insurance plans
Group insurance plans come with a host of advantages including:
- Under group insurance schemes, you can enjoy tax redemptions on the group insurance premiums
- These sorts of plans offer you the scope to secure the present and the future of the valuable employees of your organization
- As an employer or the group administrator, you enjoy the facility of using the group plan as an important tool for providing incentives to the members related to your organization
- You can easily meet the respective statutory obligations by issuing group plans and enjoy return benefits from them
Types of group insurance plans available in India
Some of the major group insurance plans available in India are as follows:
- Group Health Insurance: Here, the employer buys a group Mediclaim policy to cover health insurance for the employees. At times, depending on the company’s policy, the dependents and/or the family members are included in the plan. Her, no pre-medical check-up is required and covers for pre-and post-hospitalization costs within a certain limit, with no waiting period. It covers certain critical illnesses and may also include maternity benefits. Certain plans also cover daycare and OPD costs too.
- Group Personal Accident Insurance: Here the concerned employer or the organization covers for their employees against accidents. It covers hospitalization, partial or total disability and even death of the employee due to accidents. It covers all sorts of accidents and covers the hospitalization expenses. In case of total temporary disability of the insured, he/she is liable to receive a fixed percentage of the amount insured. In case of accidental death, the nominee will receive the insured sum.
- Pension/Superannuation insurance: The group pension scheme caters to the post-retirement needs of the employees. It is a popular alternative to NPS and EPF. You can enjoy tax benefits u/s 80C for individual contributions under this scheme. The benefits of the scheme are transferable, and you can create a regular retirement income with this type of multiple annuity option.
- Group Employee Linked Insurance: The benefit of this scheme depends on the individual contribution of the employee towards PF. The major highlight of the plan is that it is applicable universally, irrespective of the working hours or the venue of the accident occurred. On change of employment, the benefits of this scheme can be transferred.
- Workmen compensation insurance: This is typical insurance coverage under Employee Compensation Act. It offers financial support during accidents that happened within the tenure of employment and covers for loss of income caused due to injury. It offers financial protection for seasonal and contractual workers.
- Group Travel Insurance: This is a unique combination of accident, liability, and health insurance. It covers employees’ personal travel during the plan term. It offers single-window management and smoothly handles travel emergencies. You can even purchase this plan for a single employee, there is no minimum limit.
- Public Liability Insurance: This is a third-party policy, which covers third party damages and losses. It covers for the liabilities caused due to injury, property damage or other losses arising from your business-related events. It covers legal liabilities along with contractual and tenants’ liabilities as well.
Corporate Group insurance Companies in India
Some of the major corporate group insurance, India companies include:
- Future Generali India Life Insurance co. Ltd.
- Bharati AXA Group Health Insurance
- Star Health Group Insurance
- TATA AIG Group Insurance
- Max Bupa Health Insurance
- New India Assurance Co. Ltd.
This is a comprehensive guide about corporate group insurance in India. Group insurance plans can be customised to cater to specific needs since all groups are unique.