Your employees are your biggest assets ➕ and you need to protect them. Health insurance is one way to do so. It provides financial coverage for an unforeseen medical emergency to both employees and their families.
But before you go ahead and purchase health insurance, know the different types of group insurance in India and pick the one that works for your business and employees.
Of the several types of insurance policies available in India. The two main categorizations are individual insurance and group insurance 👨👨👦👦👨👩👧👦. Today, we’ll elaborate on the latter. As the term indicates, group coverage extends to a group of people typically belonging to the same organization or association.
Let’s understand the types of group insurance in India and how they differ from one another:
📜 What Is Group Insurance Coverage? 📜
Group insurance is a type of insurance cover that addresses the insurance needs of a group of people. It entails a common set of coverage benefits as per the policy statement that is issued to the group. This type of insurance is usually opted for by employers, organizations, and associations in India.
Group plans also offer a range of benefits to both the insurer and the insured. They are a hassle-free way to provide health and security to employees or the members of an association.
Further, they enable people to receive coverage at nil or affordable rates and prepare for any unforeseen contingencies without added burdens.
READ MORE: What Is Employer-employee Insurance: A Comprehensive Guide
Typically, group plans cover life’s uncertainties such as death, accidents, disability, temporary or permanent illness, critical or life-threatening diseases, and more. They extend financial aid in case of such occurrences and extend to the family members of the insured in most cases as well.
Group plans are also considered more beneficial than individual plans as they are affordable and offer great value for money.
In some cases, they also extend a wider coverage over individual plans and provide a range of tax benefits to both the employer or association and the insured group.
LEARN MORE: Employee Healthcare Insurance Coverage: 7 Must-Known Facts
Let’s understand the various types of group insurance schemes in India below:
7️⃣ 7 Types Of Group Insurance Coverage Available In India 7️⃣
Insurance is a broad ranging subject, and there are countless types of policies out there. But without delving too deep into the subject, we’ll cover the primary types of group insurance you need to know and can offer to your employees.
It’s best to understand them in depth, so you can make an informed decision that's aligned with your needs.
1. 🧑 Term life cover
A group term life cover or term plan offers a life cover to each member of the association or company. The premium payments in this case are completed by the group owner or employer who can further collect it from the salaries of employees monthly.
In a term plan, no individual underwriting is required, and new members can be added to the plan at any point in time. It is a beneficial coverage as it offers employees the means to secure the financial needs of dependents in case of any unforeseen event.
Term life cover also offers a range of tax benefits to employers as well as employees and is one of the most common group insurance plans in the country today.
2. 🏥 Health insurance
A group health insurance policy is also known as a group mediclaim policy. It is purchased by organizations to protect the health of their employees and provide them with financial aid in case of health emergencies including hospitalization.
LEARN MORE: What Is Comprehensive Health Insurance [6 Benefits Of It]
In some cases, the group health policy also extends to the family members and dependents of the employees. Further, it requires no pre-medical checkups as in the case of individual health insurance, and also includes maternity benefits.
Depending on the plan and coverage opted for, group health insurance can be considered one of the most crucial employee perks today.
At Loop, employers and organizations can opt for comprehensive group health insurance at affordable premium rates. Our plans also include added benefits such as free doctor consults, access to wellness resources, and more. For further information, click here.
CHECK IT OUT: Top 5 Best Group Health Insurance Brokers In India
3.🦼 Personal accident insurance
As the term suggests, group personal accident insurance is an insurance policy that provides coverage for accidents suffered by employees during or because of their employment.
The general benefits included in this type of group cover are compensation for accidental death to the family members or dependents of the employee, medical expense coverage, and permanent or partial liability coverage.
Depending on the plan, other expenses such as weekly benefits in case of disability, ambulance charges, and education charges for the children of the employees are also covered under personal accident insurance.
READ FURTHER: What Are GMC And GPA Insurance Plans? (Top 7 Differences)
4. ✈️ Travel insurance
Group travel insurance is an insurance plan covering health, accident, and liability insurance. It extends to a group that is intending to travel and includes risks such as loss of luggage🧳, medical emergencies🩸, accidents, and third-party liabilities.
However, this type of insurance need not be purchased only when travel needs arise. Employers and organizations can also purchase group travel insurance for employees who are or may require to travel several times a year.
Structurally, it works like an individual travel plan that is provided by insurance companies with benefits including single-window management, and hassle-free handling of travel emergencies.
5. 👷 Workmen compensation insurance
One of the most common group insurance plans offered includes workmen’s compensation insurance. It is offered by employers to workers under the Employee Compensation Act.
The insurance scheme entails the statutory liabilities of an employer in case of the death or injury of a worker caused due to an accident during employment.
The idea of workmen’s compensation insurance is to extend financial aid to workers who are working on a contractual or seasonal basis due to the hazards of their profession.
6. 🚹 Public liability insurance
Employers are sometimes required to offer group public liability insurance which is also known as third-party insurance. This type of insurance is usually offered by business entities dealing with third-party groups as part of their day-to-day work.
The group plan covers liabilities that can arise due to injury to the third party, accidents, or property damage that is caused by events arising on your premises or due to the nature of your business.
It aims to protect the business from financial losses that can occur due to such third-party claims. Public liability insurance also covers legal liabilities and contractual and tenant liabilities.
7. 👴 Pension/superannuation insurance
Another popular group insurance plan offered by employers includes pension or superannuation insurance. It aims to cover the retirement needs of employees and is thus a lucrative employee perk.
Pension plans offer financial security to employees after retirement. As part of it, members can either opt for a lump sum payment or build regular monthly retirement income with multiple annuity options.
These types of group plans also offer tax benefits to employees under the Income Tax Act if they are individual contributors. Further, they are an efficient alternative to government schemes such as the National Pension Scheme (NPS.)
Quick read: Why Is Health And Wellbeing Important In The Workplace?
👌 Get The Best Group Health Insurance With Loop 👌
In addition to the above, there are other group insurance plans available in India such as group insurance deposit-linked insurance, critical illness cover, and more. However, out of all, health insurance has gained the most popular of late, especially post the pandemic.
At Loop, we offer a wide variety of holistic group health insurance schemes. Our plans are customizable according to your business and employee needs.
They’re available at budget-friendly insurance premiums and include a host of added benefits such as a dedicated in-house team of medical experts, round-the-clock doctor consults, access to mental health counselors, and more.
With a focus on preventive care, you know your team will be in good hands and be more present and engaged at work.
To avail of our comprehensive group health insurance plans and supercharge your team with amazing health benefits, get in touch with us today.
1. Which is the best group insurance plan for employees and families?
Group health insurance plans usually work best for employees and their families. This is because of the various benefits that they entail. For instance, group plans provide coverage for pre-existing diseases, which is not offered in individual plans. Further, these plans are affordable and can be availed by the employee and their dependents for nil to low costs.
Loop provides one of the best group health plans for employees. Besides offering customized plans, we also give you unlimited doctor consults, wellness sessions, round-the-clock support for customers and claims, and more, which makes managing your health benefits so easy.
2. What does comprehensive insurance coverage cover?
Comprehensive coverage covers GHI, GPA, GTL, WCI, pension benefits, as well as travel insurance. As the name suggests, comprehensive coverage aims to insure employees in all matters and is thereby the most secure arrangement.
It is advisable for organizations to include comprehensive coverage in their employee benefits plans for this purpose and more.
3. What type of group insurance is the most important?
Every type of group insurance comes with its own set of benefits. However, given the times we live in and the subsequent health perils, you can say that group health insurance (GHI) is the most important. It provides hospitalization aid and other financial provisions to employees in times of health contingencies.
Holistic group plans such as the ones at Loop also offer added advantages, including mental health consults and access to wellness resources.