How to choose the right group personal accident insurance coverage for your business?

92% of founders & CHROs around the globe believe that the right group personal accident insurance coverage can be a total game changer for businesses. However, companies still struggle with choosing the right group personal accidental insurance that perfectly meets the requirements of their workforce. This blog will cover everything you need to know about group personal accident insurance and the key factors you should consider before purchasing the right group personal accident insurance plan for your employees.

What is group personal accident insurance?

Group Personal Accident (GPA) Insurance is a policy designed to provide financial protection to a group of individuals—typically employees—against accidental injuries, disability, or death. It is commonly offered by organizations as part of their employee benefits package to ensure financial security in case of unforeseen accidents.

Why buy a group personal accident insurance plan in the first place?

Imagine your employee meets an accident while driving back home from a hectic day at work. If you are an organization that truly cares for your employees and has the right group personal accident coverage, then your employee need not have to worry.

The coverage will provide complete financial cover against permanent or temporary disability caused by an accident. The group personal plan will provide compensation for the cause of the death of an employee and makes the employee's family members completely monetary worry-free.

Despite taking so many precautions, accidents happen. Therefore, a comprehensive group personal accident insurance policy is essential to protect your employees from such unforeseen events. Only when employees have a complete sense of protection, they can contribute immensely to the growth of the company.

Also Read: Purchasing group personal accident insurance online: Complete guide

Factors to consider while choosing the group personal accident insurance coverage for your team

In a year over a billion lives are covered under group personal accident insurance policy in India. In such a market, it can get extremely challenging for businesses to find the best group personal accident insurance coverage for their businesses.

Here are some of the criteria that you need to ensure before purchasing the right group personal accidental insurance.

• ‍Opt for higher coverage

Insurance coverage pertains to the degree of risk or responsibility assumed by an insurance policy in the event of an unfavorable circumstance. It is crucial to guarantee that your group personal accident insurance policy encompasses any potential mishaps that may occur during your daily routine.

Furthermore, if you are in a business that requires frequent travel, it is imperative to verify that your policy covers worldwide coverage along with other essential coverages.

• ‍Make sure to monitor sub-limits

Various coverage benefits have limits and sub-limits that apply. Therefore, it's important to request a comprehensive explanation of the sub-limits from your insurance provider or broker.

If the insured experiences temporary total disability, the compensation received may be a fixed amount or a weekly payment of 1% of the sum insured for up to 100 weeks, based on the policy's conditions.

• ‍Monitor additional coverage options

GPA insurance policy comes with several add-on covers. These extensions could consist of expenses such as children's education, ambulance charges, transportation of mortal remains, and funeral expenses. Make sure you choose add-ons based on the requirements of your business.

However, an extra premium amount must be paid for these extensions. It is also necessary to consider the potential risk areas and hazards that require insurance coverage. Terrorism, sea perils, and road accidents are examples of potential risk exposures.

Depending on the occupation, these add-on covers can be incorporated into the group accidental insurance plan.

• ‍Make sure you check the benefits that come along

Most insurance policies include benefits such as permanent total disability, permanent partial disability, and accidental death coverage. It is important to confirm that the policy also covers expenses related to ambulance services and hospitalization.

Also Read: Top Insurance Brokers in India

Eligibility of group personal accident insurance

Who can opt for GPA insurance?
Group Personal Accident (GPA) Insurance, is suitable for all types of organizations whether you are a startup, SME, or a large corporate. Employers looking to strengthen their employee benefits package and provide financial security against accidental risks can purchase this policy.

Minimum employee count requirement
Most insurers allow a GPA policy to be purchased for companies with as few as 7–10 employees, making it accessible for startups and small businesses. 

Is it compulsory in some industries?
While group personal accident insurance is not legally mandatory for all businesses, it becomes essential in high-risk industries like construction, logistics, manufacturing, and transportation. Employers in these sectors often opt for GPA to safeguard workers against occupational hazards and to comply with workplace safety norms.

Tax benefits for employers

Premiums paid by employers towards group personal accident insurance or business personal accident insurance are treated as a business expense. This makes them eligible for deductions under the Income Tax Act, 1961 as part of employee welfare expenditure. By investing in GPA, companies not only safeguard their workforce but also optimize their tax planning.

Final Words

Unexpected and unfortunate events can lead to significant financial burdens. It is essential to take preventive measures to safeguard your employees from the financial aftermath of such events.

Choosing the right group accident insurance is an important step towards succeeding in your business. In order to help you navigate your insurance journey, onboarding the top insurance broker can be of immense help.

Group personal accident insurance from Pazcare

Pazcare offers a cost-effective, customizable personalized group personal accident insurance policy for businesses. Purchasing a group personal accident insurance policy from Pazcare offers additional benefits.

User-friendly tech-enabled dashboard that enables HRs to manage and administer policies in one convenient location. Additionally, employees can access the Paz app on their mobile devices to manage their policies. The policy also includes free wellness sessions for employees, dedicated account managers, and round-the-clock customer support. Get in touch today!