What is a Group Personal Accident Policy (GPA) and how can it create significant change in your organisation.
According to the Global Health Observatory data published by the WHO, in 2013, low and middle-income countries had road traffic fatality rates of 24.1% and 18.4% respectively, and the high-income countries had 9.2%. Personal and group accident policies become a critical part when accidents happen at that rate.
Global Group accident policies are designed for a group of people, usually employees of an organisation, individuals who are a part of a union or association or members of a pension fund or people with similar risk profile.
Importance of Group Personal Accident Policies
Every breadwinner of the family looks for means to secure his/her future and that of his dependents and reduce the immediate financial liability that seeps in in case of death or permanent disability. Every organisation also constantly seeks means to safeguard the employee’s future by looking for policies which can provide financial support in case of any unfortunate event. The workforce is the biggest asset to any organisation and thus the responsibility of the organisation increases manifold when it comes to safeguarding the employees during their worst times. It not only creates a better picture of the employer to its employees indicating its concern for the employees during times of accidents or any other medical emergency but also the ease with which the claims get settled, reduces the financial liability on the employees and their dependents.
It provides coverage for the expenses and compensation to the group for accidents or injury during their lifetime, expected for the accidents aligned to the clauses that are excluded.
What is covered in a Group Personal Accident Policy?
The scope of coverage depends upon the terms of the plan. However, the following covers are provided by most of the Group Personal Accident Policies.
- Accidental Death: Compensation is paid to the nominee in the event of the death of the policyholder from bodily damage arising out of harsh external factors. For example, road accidents.
- Permanent Disability: Certain percentage of compensation is paid in the event of permanent disability depending on the disability sustained being total or partial. In either case, compensation is paid if the disability is continued for more than 12 months.
2.a Permanent Total disability: Compensation up to the assured sum is paid out to the policyholder on instances of permanent total disability which has continued for more than 12 months. Instances of loss of both limbs or irrecoverable loss of sight are categorised under permanent total disability.
2.b Permanent Partial Disability: Compensation from 2% to 60% is paid out to the policyholder depending on the terms of the policy, provided the disability is continued for more than 12 months. Permanent partial disability includes injuries as loss of hearing in one ear, loss of fingers.
- Temporary Total Disability: Compensation varying across policies and the terms of policy for disabilities which are complete and temporary in nature (fracture).
- Weekly Benefits: For a policyholder who is completely disabled, weekly benefits are provided for a temporary period to compensate for the loss of salary.
- Ambulance Charges and Hospital Cash: The insurer reimburses ambulance charges in case the policyholder has to be rushed to the hospital from work. Additionally, cash is handed over to meet the daily needs in cases where the employee (policyholder) is hospitalised for more than a day and losing out on pay due to not working.
- Educational Benefits: In case of unfortunate death of the policyholder or permanent disability, the cost of education of the children are covered under GPA policy.
With the payment of extra premium, the policyholder receives additional allowances for funeral and lifestyle changes that a dismemberment or injury brings in like a modification of car or objects used to carry out the day to day activities. The insurer also bears the cost of transportation of the mortal remains of the policyholder from the site of mishap to residence, hospital or crematory.
What is Not Covered
Injuries incurred by the policyholder through participation in extreme sports, HIV/AIDS or Intoxication.
Group Personal Accident policies are designed carefully to provide extensive coverage to the policyholders or employees in case of any mishap. Some insurance companies provide customised Group Accident Policies to suit the requirement of the organisation keeping in mind the need of the employees.