Types of group insurance

What is group insurance?

A group insurance policy refers to an insurance policy covering a group of people belonging to the same company, professional front, or association. The coverage benefits are provided according to the policy guidelines. These benefits apply to all the members covered under the same. (eg: employees, members of association etc). 

Group insurance in India are very customizable for the employers’ and employees’ needs. The ability to customise one’s group insurance policy is like a boon. You can choose what works and doesn’t work for your employees to cater to their necessities. A group insurance policy can be customized according to the requirements like to include parents or not, an option of co-pay etc.

Read: Difference between ESI and group insurance

Types of groups

There can be two types of groups that can get group insurance plans. 

Formal (employer-employee groups) 

Employers of companies or organisations purchase the group insurance plan to insure the employees.

Informal (non-employee groups)

These are cultural, social or welfare associations where the group administrator or head of the association purchases the group insurance. The members of the association or organisation are insured in that process. 

Classification of group insurance plans:

There are a lot of group insurance plans available. Although the list can be varied, however, we can classify them into two main categories, namely: Non-contributory and contributory.

Non-contributory 

In this type of group insurance policy, the premium is paid by the employers of the company.  The employees can avail of the group insurance cover benefits without paying any premium in this case. 

Contributory 

In this case, the employees or the members need to pay the premium (partially or fully) to avail the benefits of the insurance cover. For example, the employer may deduct a part of the employee’s salary to pay the premium of the group insurance policy. 

What are types of group insurance?

• Group health insurance
• Group personal accident insurance
• Group term life insurance
• Group travel insurance

Group health insurance /group mediclaim cover

A group health insurance is one of the most common insurance cover provided by the employer to its employees. As the name suggests, a group health insurance policy provides health insurance coverage to all employees working in that particular organization. A group health insurance plan can also cover the dependents of the employees. Eg: parents, spouse, children etc.

Features of group health insurance policy 

• Before purchasing the group health insurance, no medical tests are required, unlike an individual health insurance policy 
• To claim for pre-existing diseases, the group health insurance policy requires zero waiting period.
• A group health insurance plan is customizable according to the needs of your company's nature and size. You can choose your add-ons and co-pay according to your flexibility for your team.
• The network hospitals covered within your policy accepts cashless bill payments. This enables your employees and their dependents to have a smooth health insurance claims process.
• If you test positive for covid, the hospitalization expenses are covered by your group health insurance.

Group personal accident insurance

Road accidents can be very sudden and are one of the top 10 reasons for death in India. The group personal accident insurance helps cover the employees or members from unexpected accidents and expenses. 

Features of group personal accident insurance

• In case of sudden accidental injury, the hospitalization is covered.
• In the case of total temporary disability, the insured receives a certain percentage of the sum assured depending on the insurance company. 
• If the insured loses vital limbs, 100% of the sum insured is received. 
• In case of death of the insured, the nominee receives the entire assured sum.
• In the case of partial disability, the insured receives 2% - 60% of the sum assured. 

Group term life insurance policy

A group term life insurance refers to a kind of policy that assures that their family or dependents are protected in case of your employees’ demise. The nominee of the employee gets the sum insured in case of the demise of the employee.

Features of group term life insurance policy  

• Cover based on age or salary - A group term life insurance policy provides different coverage based on salary/age/ grade/CTC of employees.
• Increase the insurance cover easily - The insurance cover can be increased easily when there is a grade/salary/age revision.
• No medical reports are required - The insurance process is made easier and faster by eradicating the requirements of any previous medical reports. 
• Critical illness rider - In case of critical illnesses like cancer, renal failure, heart attack, multiple sclerosis etc, the employees can buy add-ons along with the existing policy.
• Bereavement benefit - In the event of the death of the insured, the nominee gets a sum equivalent to the sum assured. 

Group travel insurance for employee

Travelling is an integral part of a business. But with frequent travelling ventures comes certain risks. As an employer, one can protect their employees from unexpected incidents and travel expenses by providing group travel insurance. 

Features of a group travel insurance policy

• Group travel insurance provides cover against all medical emergencies that incur during a travelling incident. From in-patient to out-patient medical expenses, group travel insurance makes sure you have a backup for sudden accidents.
• During accidents, any injury or even death is covered by the group travel policy. 
• There are instances when we have to cancel our trip due to numerous obligations. In cases as such, the group travel insurance covers against the cancellation charges.

Why choose Pazcare for your group insurance policy?

Here are some of the features of Pazcare, which provide employee healthcare benefits especially built for the modern Indian workforce.

24*7 customer support

For any queries or assistance, Pazcare makes sure you have constant support. So, a 24*7 assistance facility is available.

Dedicated POC

To make the claim process smoother, it is always better to have a single point of contact. Pazcare makes sure that you get a dedicated SPOC for all your queries to have a hassle-free claim experience. 

Super top-up

Sometimes the group health insurance coverage may not be sufficient for employees. Pazcare provides the option for employees to increase coverage to up to 20 lac with a super top-up feature in group health insurance.

Access and manage policy easily with our dashboard

Pazcare has its own dashboard which acts as a one-stop solution for all insurance-related chores for you as well as your employees. From managing your group insurance, and tracking the live policies to carrying out endorsements, the HRMS integrated Pazcare dashboard makes everything easier. 

Free Wellness activities

Pazcare also offers complimentary wellness packages to make sure that mental health is not overshadowed as that carries equal importance to one’s complete wellbeing.