Types Of Group Insurance Plans In India

Types Of Group Insurance Plans In India


In today’s times, it is highly competitive when attracting and retaining good talent for an organisation. In a bid to achieve this, both established corporate firms and new-age startups offer a number of fringe benefits to keep the motivation levels of their employees high.

One such instrument widely used by companies towards improving employee retention rates is group plans, especially Group health insurance plans. So, which group plan should you offer to your employees? Should you offer more than one type of group insurance plan to them? Let’s find out answers to all these questions!

What is a Group Insurance Plan?

  • A Group Insurance plan is like an umbrella policy, which provides insurance cover for all members of an organisation or company employees under a single policy.
  • This feature helps an organisation save its funds by doing away with the need to buy individual policies for different members, making it a profitable investment for the employer.
  • Group Insurance plans are served as perks and benefits to the employees. It is a practical demonstration of an emphatic gesture by an organisation for its employee and is a must-have in an offer package, especially in today’s competitive hiring scenario.
  • It helps an organisation hire efficient candidates and make them feel valued, and thus, helps retain them.

Benefits of Group Insurance Plan

  • Comprehensive Coverage at Affordable Rates: Group plans help you ensure that your employees have access to wide insurance coverage at affordable premium rates. This is especially true in the case of group health plans, which ensure that your employees get quality medical treatment in time. This helps speed up their recovery time and makes it relatively easy to return to work.
  • Increased Employee Productivity: Provision of fringe benefits, at times, contribute more than monetary benefits. A group plan provided by you will keep your employees motivated to do their work, contributing to an increment in their productivity.
  • High Employee Retention: When as an employer, you provide benefits like group plans to your employees, they feel valued and belong to their place of work. This helps in keeping the attrition rates low and retention rates high. This also enables you to keep your recruitment costs in check.

Types of Group Insurance Plans

Group Life Insurance Plan In India - Your Guide to Insurance

Group Health Insurance Plan

  • A group health insurance plan provides several basic health care necessities such as coverage for medical treatments, maternity benefits, daycare treatment, routine medical checkups, etc.
  • Since the Covid-19 pandemic, everyone has become quite attentive to their health and their loved ones, making group health plans more required by employees.

Group Life Insurance Plan

  • An employer provides a group life insurance policy to their employees to help them keep their loved ones financially secured, even in their absence.
  • Being a life insurance policy, it provides coverage to the life assured in the event of unfortunate death, temporary/permanent disability, partial/total disability, terminal illnesses, etc.

Group Personal Accident Insurance Plan

  • A group personal accident policy is perfect for working professionals who need to commute to their office regularly.
  • It provides insurance coverage in case of accidental death and partial and total disability of the life assured due to an accident.
  • This policy also provides a regular income payout to the life assured if they cannot work due to a disability.

Group Travel Insurance Plan

  • A group travel policy is meant for employees who need to travel for work for business purposes, frequently domestically and internationally.
  • It provides insurance coverage for accidental deaths, permanent disablement, and emergency medical expenses incurred due to or during business travel.

Group Pension Insurance Plan

  • A group pension insurance plan serves as an alternative to popular retirement benefits, namely Employee Provident Fund (EPF) and National Pension Scheme (NPS).
  • These plans ensure the financial security of your employees after their retirement. It helps them stay financially independent even after signing off from professional life through multiple annuity payments.

Group Public Liability Insurance

  • A group public liability insurance is insurance cover that helps keep your employees safeguarded against any damage caused to them or their property by a third party.
  • It is generally opted by those professionals who deal directly with the public.
  • Thus, this policy helps keep such individuals safeguarded against any penalty or litigation expenses they might attract while delivering their service.
  • The group public liability insurance is a common financial safety net opted for by associations of doctors, lawyers, teachers, etc.

Take Away

In today’s era, group plans, primarily group health insurance plans, have become an essential and strategic tool for companies that can help them build their employee base strong, and that too at an affordable cost. There are various types of group insurance plans available, so choose according to the requirements of your employees so that you as an employer contribute to them more than their expectations.

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