Offering health benefits is generally one of the simplest and most effective steps an employer takes to reward and attract skilled talents and employees. Doing this ensures the employees' reliability, increases productivity, boosts morale and helps shape a positive work environment and work culture.

There are some mandatory benefits and considerations which an employer needs to have for employees' benefits. Managing employee benefits programme like group Insurance is an essential and costly endeavour for employers. Although employees benefit programs are broad, but typically includes medical services for the employees.

Let us take you to the types of employees benefit insurance-

Kinds of Employees benefit insurance programme.

Group Mediclaim (GMC) insurance

Employer provides employee Group Insurance Policies to provide health insurance benefits to employees and their family as a perk in addition to salary. The GMC Insurance covers expenses towards diseases/ailments and accidents incurred as an in-patient in a Hospital which will include:

  • Room, Boarding and Operation Theatre charges
  • Fees of Surgeon, Anaesthetist, Nurses, Specialists
  • The cost of medicines, diagnostic tests, blood, oxygen, appliances like pacemaker, artificial limbs, organs, etc.

The Employer's company does not have to be super big to avail of this group insurance scheme. IRDAI clarified in 2016 that group insurance could be available by companies having just 20 employees. And further, there are some provisions to allow for micro-companies with as low as five employees also. Employers have an obvious incentive to invest in group insurance as it is tax-deductible and inexpensive and provides a significant boost of motivation for existing employees and prospective hires.

More people generally have more options when more people are included, generally at a lower price than what would otherwise be available. In short, this means a lot of value, including:

  • Better insurance plans offered.
  • A lower price for insurance plans
  • More coverage for pre-existing conditions

Group Personal Accidental (GPA) Insurance

Accident - means a sudden, unforeseen, uncontrollable, and unexpected physical event to the insured person caused by external, violent, and visible means occurring under the circumstances described in a hazard applicable to that person. This policy is purely an accident instigated policy. It covers the financial risk due to death, disability and loss of earnings caused due to an accident. It reduces the financial burden on the family due to loss of earnings.

  • Flat (Insurance Cover remains same throughout)
  • Graded (Insurance Cover can be increased in midterm with change in Grade/ Promotions)
  • Multiples of CTC/Basic (Maximum up to 10 times of CTC and may vary from Insurer to Insurer)
  • Combination of the above
  • Scope Of coverage

    Accidental Death
    Compensation is payable in case of Accidental Death. In such a loss, 100% of the Sum Insured is paid.

    Compensation is payable if the accident results in the loss of two limbs or two eyes or one limb &/or one eye. Compensation is also payable if the accident results in loss of speech & loss of hearing in one or both ears. The benefit given depends on the degree of loss.

    Permanent Total Disability
    Permanent Total Disability means total and permanent inability to engage in every occupation or employment for compensation or profit. You are appropriately qualified, experience for the rest of your life. Compensation is payable if Permanent Total Disablement is caused due to an accident. In such a situation, 100% of the Sum Insured is payable.

    Permanent Partial Disablement
    It means the Insured Person has suffered a permanent loss of physical function or anatomical loss of use of a body part, substantiated by a physician's diagnosis. Compensation is payable in case of partial disablement caused because of an accident. In this case, the amount payable is based on the degree of disability incurred.

    Temporary Total Disablement
    means disability, which wholly prevents such Insured Person from performing every duty about his occupation.
    A weekly payment of up to 1% of Sum insured or agreed Sum or the actual net weekly salary (whichever is lower) is given for each week up to a maximum of 104 weeks.

    Abhivridhi Tip

    A good Group Personal accident policy must cover Accidental death, permanent disablement, broken bones, ambulance charges, the mortal remains transportation charges, weekly benefits of the healing costs, in case of entirely/temporary disablement.

    Group Term Life (GTL) Insurance

    A Group Term Life Insurance policy, as the name suggests, is a kind of insurance coverage provided to a group of people. It offers financial independence to the Insurer and their loved ones in case of unfortunate events.
    The term life insurance policy is a life insurance plan that offers protection for a specific period. In case of an Employee member's death in the specified term, the policy provides death benefits to deceased beneficiaries. However, unlike permanent Insurance, Term Insurance plans have no cash value.
    Group term life insurance plans have beneficial features, making them the ideal policy for the working sector.

    • Members can be added to the group at any time of the year.
    • A pre-decided sum assured is paid to the insured individuals' beneficiaries in case of any unfortunate event.
    • Add-on covered are available as riders for covering critical illnesses and disabilities.
    • Build-in benefit for terminal illnesses.
    • Relatively cheaper than individual plans.

    Abhivridhi Tip

    Always consider buying a benefit policy like hospital cash along with your Health Insurance.

    Get a pool of premium quotations available with multiple insurance companies from team Abhivridhi Insurance Brokers. Compare the features of the coverages and select the best fit for your employee needs.