Employee compensation packages have gone beyond the basic pay. Employers now include various added benefits for their employees’ financial well-being to boost employee morale and foster loyalty. Insurance plans form a crucial part of employee wellness benefits. A group personal accident insurance plan is one such coverage that can provide financial protection to your employees.
What is group personal accident insurance?
A group personal accident plan covers accidental contingencies suffered by the insured members of the group. The policy covers the following contingencies that might arise as a result of an accident –
- Permanent disablement
- Total disablement
- Partial disablement
Moreover, depending on the plan that you choose, the coverage might also include the following –
- Temporary total disablement
- Transportation of mortal remains
- Cost of ambulance
- Funeral expenses
- Medical expenses
- Lifestyle modification due to disablement
- Education fund for dependent children
Benefits of group personal accident insurance
A group personal accident plan is beneficial for both employees and the employer. Here are the primary benefits of the policy –
- Comprehensive coverage
The policy provides a comprehensive scope of coverage against accidental eventualities. Group personal accident plans offer a range of both inbuilt and optional coverage benefits to ensure that your employees can enjoy comprehensive coverage against accidents.
- Financial protection
If any employee suffers accidental death or disablement, the plan pays a lump sum benefit to the employee or the nominated family member. 100% of the sum insured is payable in the case of accidental death or permanent total disablement. In the case of permanent partial disablement, a specified percentage of the sum insured is paid. Such benefits provide the injured employee’s family with the financial support needed to deal with such an emergency.
Furthermore, some group personal accident policies allow you to enhance the scope of coverage beyond death and disablement. The enhanced coverage makes your employees’ financial well-being a leading priority. For instance, if the plan allows an education fund for the employee’s children, a lump sum benefit would be paid in addition to the claim. It would secure the children’s future even when their parents are not around.
Group personal accident plans are pretty affordable in terms of premiums. The premiums are very low against the considerable quantum and scope of coverage provided. Group personal accident coverage does not pinch the business or the employee’s pocket, no matter who pays the premiums.
For the employer
- Easy availability and claim
Many insurance companies offer group personal accident plans to cover policyholders in the event of disablement or death. Employers can obtain the policy quickly, either online or offline. You can also compare the coverage provided by different plans vis-à-vis the premium charged. The comparison would help you pick a policy that offers the most inclusive scope of coverage without burning a hole in your or your employees’ pockets.
Moreover, in the case of claims, the process is quite simple. Your employees can get a digital health ID card online, which would serve as proof of coverage. They can use the card to make a claim whenever they face any contingency covered under the plan. Once the claim is verified, the insurer pays the amount to help your employees and their families deal with the financial loss that they might have suffered.
- Helps in fulfilling social responsibility
Employers are socially responsible for compensating their employees and/or their families if anything untoward happens to them. This compensation, however, can put a dent in the company’s cash reserves, especially in the case of start-ups or SMEs.
A group personal accident policy proves relevant in such scenarios. They help you fulfil your social responsibility without putting a great deal of strain on your reserves during an unfortunate emergency by compensating your employees.
- Helps attract and retain talent
Employees today look for value-added benefits aside from the pay package that organisations provide. A group personal accident plan can attract talent to your organisation by providing a value-added benefit. Moreover, you can foster employee loyalty and retain well-performing employees with the coverage provided.
- Builds employee morale and boosts productivity
When employees are financially secure, they tend to give their best to their job. This, in turn, increases productivity. Moreover, employees feel a sense of gratitude when their organisation cares for their financial wellness. Enhanced employee morale, in turn, results in a productive and healthy workplace.
- Enhances profitability
Good talent, enhanced morale, and productivity ultimately lead to enhanced profitability. Your organisation can grow and become more profitable with group personal accident coverage.
Group personal accident insurance plans add a layer of financial protection to your employees’ portfolios. The policy is cost-effective, provides a broad scope of coverage and is readily available. Additionally, it can prove beneficial for your organisation by helping you recruit and motivate the right talent, besides ensuring their productivity and retaining them.
An accidental group insurance plan is an excellent way for employers to show their employees that they care about their well-being. It is high time you invested in a group personal accident policy for your employees, who are the lifeblood of your organisation. So why wait? Make sure you choose an appropriate insurance plan that includes optional features for all-around protection and provide your employees with the financial security they need.