July 25, 2024

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Facts about Group Accident Insurance

Facts about Group Accident Insurance

Why is Insurance Needed?

This type of insurance provides accident coverage for a small or large group. A company typically provides it for its employees. Service providers and banks also offer this type of insurance to customers. Every company or service provider with a certain number of employees can avail of this coverage. For example, commercial airlines can provide group accident insurance to their passengers and include it in the airfare. This kind of policy is sometimes referred to as a master insurance policy. Before buying this policy for your employees, it is imperative to know more about it, weigh its pros and cons and then make a well-informed decision. You can speak with the experts at Plum Insurance, who can also help you create a customized insurance plan that best suits your needs and requirements.

Key Features of Group Accident Insurance Policy

  • Accidental death is covered; the company will pay the insured sum to the employee’s nominees. Accidents are a common cause of economic crisis for several families, derailing their livelihood. Loss of income and total or partial disability are some of its direct outcomes.
  • It covers permanent or partial disability, for example, loss of vision or limbs.
  • It takes care of hospitalization expenses caused due to the accident and maintenance during the period.

Specific Exclusions

  • Death is caused due to natural circumstances like terminal diseases or underlying conditions
  • A self-caused injury like suicide
  • Injuries due to alcohol or drug influence or violation of laws are also excluded
  • Venereal disorders and diseases
  • Injuries caused due to anomalies like war or communal disorders
  • Pregnancy

Why Should a Company Opt for Accident Insurance?

Many companies mull over the need for this plan when employees are already given group term life insurance. The main reason is to offer an additional layer of protection. Some of the benefits that come with this type of insurance include:

  • The cash benefit is directly credited to the insured without the company’s involvement.
  • The benefit payout does not depend on the employer’s income or the yearly profit schemes. Even if the company is making losses, the employees are covered.
  • The coverage is guaranteed under all circumstances and is not judged based on the individual’s health condition in general.
  • The dependants of the employee are entitled to the same benefits as the primary insured or the employee.

Selling accident insurance | BenefitsPRO

What are Its Key Benefits?

A group accident insurance includes a variety of benefits based on the financial health of the family and the health risks that an employee faces after the mishap. Some core benefits include ambulance services, emergency room charges, fractures, hospitalization and paralysis.

Some additional benefits, known as rider’s insurance, are provided. It can cover the expenses of the individuals dependent on the injured. Typically, they are adult boarding facilities and child care.

Apart from the above, mental health benefits are also covered. Chief among them is PTSD, also known as post-traumatic stress disorder, which includes trauma counselling, rehabilitation therapies and psychological help. Coupled with group health insurance, this can promote stability and security.

How Does the Plan Work?

It is an almost foolproof plan, and the individual involved in the accident can use the benefit in several ways. The insurance payout can help the injured or their family members by covering deductible or out-of-pocket medical and even everyday living expenses. More features are available within this plan but may include additional premium costs.

Some of them are:

  • Death due to accident or dismemberment. This additional coverage provides the beneficiaries with further financial assistance for a brief time.
  • Health and wellness plan, where the employees and spouses can opt for an annual health screening.
  • Some insurance companies may offer continued coverage, meaning that if the employee is disabled, the insurance premium is waived. These options are also available for employees who have been terminated.

Key Features for Employers

Employers can customize the insurance plan by choosing from a wide variety of features available with the insurance company. Some of them are as follows:

  • They can add or remove an employee from the plan.
  • Employers can avail of a considerable amount of savings through these plans.
  • They can also benefit from loyalty programs offered by insurance companies.
  • Some insurance companies provide unique hotline numbers for continuing customers.
  • A personal insurance agent is assigned to a company’s profile and can serve as a one-point contact.
  • They offer a complete package that takes care of the end-to-end details of the employees. The employer need not maintain a separate staff or profile of the employees, as it is taken care of by the insurer.
  • Finally, such employee benefits lead to employee satisfaction and higher retention rates.

Key Features for Employees

  • Employees save money by not investing in a personalized insurance plan, and this plan takes care of all their insurance needs.
  • They get further assistance from the insurance company as the end-to-end details are taken care of. This reduces the hassle of paperwork and running from pillar to post for information.


Insurance companies sometimes make group insurance plans sound like rocket science, although they are extremely simple to understand. As per the laws, any employee of a particular company is entitled to group accident insurance, and also every business or organization needs to provide the same for its employees.

These plans work for the employers and the employees, making it a win-win plan. With the right plan, both parties can enjoy financial benefits. Most importantly, the employees feel safe and secure. The knowledge that they are financially secure, and their health and medical needs would be taken care of in case of any contingency, puts their mind to rest. They are more productive, and their work performance increases substantially.

Look for a reputed and reliable insurance service provider, explore various plans available, weigh the pros and cons of multiple plans and then take a final call on the best policy. This way, you can avail of the best coverage for your employees.