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"Group Personal Accident Insurance: Key Features and Benefits Explained"

PUNJAB NEWS EXPRESS | April 30, 2025 10:15 PM

A Group Personal Accident Insurance offers financial coverage to an individual against a risk of accidental health and disability. It offers comprehensive protection at an affordable premium to enhance the coverage for a group of persons, such as employees, board members, owners, etc. The insured gets a lump sum compensation in the event of an accidental death or a permanent injury. The only requirement is that there should be an existing relationship between the policyholder and the members:  

  • Any organisation for financial security for members
  • School/education institutions for students
  • Associations/Housing societies/Clubs for members
  • Seller taking policy for customers  

What is Included?  

  • Accidental Death
  • Permanent Total Disability & Permanent Partial Disability
  • Temporary Total Disability
  • Medical expenses incurred because of the accident
  • There are multiple add-ons such as Child education grants, Loss of job protection, Hospitalization and OPD expenses for injury, etc. 

What is Excluded? 

  • Suicide, an attempt to commit suicide or intentionally self-inflicted injury
  • Addicts of drugs, alcohol, or any other intoxication or hallucinogens
  • War
  • Nuclear Hazard
  • High-risk adventurous activities like parachuting, skydiving, etc. 

Key Features of Group Personal Accident Insurance 

  • In the case of employees, group personal accident insurance can be available to clubs and corporations.
  • Some of them offer an educational fund for the dependent children of the insured in the event of death or permanent disablement.
  • It has a policy tenure of one year from the start date of the policy.
  • Discounts are also provided depending on the group’s size. 

Benefits of Group Personal Accident Insurance 

  • Accidental Death:  The sum insured is paid to their nominees in the event of the insured's accidental death.
  • Permanent Partial Disability:  If a continued partial disability for 12 months occurs, then the sum insured, ranging from 2% to 60%, depending on the policy term, is paid by the employer to his/ her employee. 
  • Permanent Total Disability: If a continued total disability for 1 month occurs due to an accident, then the compensation is paid to the employee maximum up to the sum assured. 
  • Educational Benefits: In the event of an employee’s unfortunate death or permanent disability of an employee, the company will pay for the cost of the children’s education. 
  • Ambulance Charges: In case an employee has met with an accident, the company will then incur ambulance charges. 
  • Medical Reimbursement: Employees can be reimbursed for hospitalisation charges and medical expenses, as well as those incurred due to accident or injury.  

How to Claim Group Personal Accidental Insurance?  

  1. Intimation  
  • Intimate the insurance provider about the accident.
  • The insurance company will register the claim.
  • The claim form will be sent to the insured along with the required documents checklist.  
  1. Processing  
  • The policyholder will be informed if incomplete documents are needed.
  • Once all the documents are received, the claim will be processed as per merit.  
  1. Settlement 
  • The cheque will be prepared and sent to the concerned insured.
  • In case of rejection, a letter is sent by the claim settlement team to the insured.  

Conclusion:  Group Personal Accident Insurance is a wholesome package that employers can buy to provide extensive coverage to their employees. Also, many insurance companies provide customised options based on requisites, needs, and wants.

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