As an employer, the safety and well-being of your employees are your top priorities. Unfortunately, accidents are unpredictable and can happen to anyone at any time, leaving them with physical and emotional distress, and financial burdens. But don't worry, you can provide them with an extra layer of protection through a Group Accident Insurance Policy (GPA).
In this blog post, you'll discover all the essential details about GPA, including its features, benefits, and common exclusions, so you can make an informed decision on the right coverage for your team. We understand that navigating insurance policies can be confusing and overwhelming, but we're here to simplify the process and help you provide the best protection for your employees and their loved ones.
What is Group Personal Accident (GPA) Insurance?
Group Personal Accident (GPA) is a type of insurance policy that provides financial coverage and support to employees in the event of accidental death, permanent disability or dismemberment resulting from an accident.
The coverage and benefits provided by the policy can vary based on the terms and conditions of the policy.
Salient features of purchasing a Group Personal Accidental Policy
- GPA policies can often be customised to include additional coverage options such as emergency medical evacuation, repatriation of remains, and accidental dismemberment.
- The policy covers a range of accidental injuries, including fractures, burns, dislocations, and even death.
- The accidental policy is often more affordable than individual accident insurance policies, as the cost of the policy is spread across a group of employees.
- GPA policies are typically renewable on an annual basis, giving employers the flexibility to adjust their coverage as needed.
- GPA policies can be purchased by employers of any size, from small businesses to large corporations.
- This policy can be an attractive employee benefit, helping companies to attract and retain talented employees who are looking for comprehensive insurance coverage.
- GPA policies provide coverage 24/7, even when an employee is off-duty.
What are the top 5 benefits of having Group Personal Accident (GPA) insurance coverage for your employees:
- Financial support and security: In the event of accidental death, permanent disability, or dismemberment, this policy provides financial support to your employee. The insurance payout can help cover medical expenses, lost income, and other financial obligations. This also gives employees peace of mind and reduces anxiety about their future.
- Customisation options for higher employee satisfaction: GPA policies can be customised to meet the specific needs of your company and employees. This means that coverage and benefits can be tailored to specific requirements, such as coverage for specific types of accidents or higher payout amounts for specific injuries.
- Cost-effective benefit: GPA insurance is often less expensive than other types of insurance policies, making it the most cost-effective option for employers to provide insurance coverage for their employees.
- Easy to administer: Claims can be processed 4X times faster and more efficiently in the case of a GPA policy.
- Worldwide coverage: Many GPA insurance policies provide coverage for accidents that occur anywhere in the world. This can be particularly beneficial for employees who frequently travel for work.
While there are several benefits to a GPA policy, it is critical to understand the fine print.
What’s covered in a Group Personal Accident Insurance Policy?
- Accidental Death- This coverage includes death due to a sudden, unforeseen, and involuntary event caused by external, visible, and violent means. The coverage limit is 100% of the Sum Insured.
- Permanent Total Disability- The policy covers total disability that is permanent in nature. This includes the loss of sight of both eyes or one eye, physical separation of or the loss of ability to use both hands or both feet or to use one hand and one foot.
- Partial Disability- This policy covers the total and continuous loss or impairment of a body part or sensory organ, with the percentage of disability. The compensation amount depends on the extent of the disability.
- Temporary Total Disability- The policy provides coverage for temporary total disability resulting from an accident. This refers to a situation where the insured person is completely disabled and unable to work for a temporary period due to an accident. The policy covers a percentage of the sum insured for a certain period of time.
- Accidental Hospitalisation- This policy covers expenses incurred due to admission to a Hospital because of an accident for a minimum period of 24 consecutive hours.
- Accidental OPD- This policy covers expenses incurred during an OPD treatment. The insured visits a clinic/hospital or associated facility like a consultation room for diagnosis and treatment based on the advice of a Medical Practitioner. The insured is not admitted as a daycare or in-patient.
- Cremation Charges- An additional fixed amount is paid towards the funeral expenses upon a death claim. This coverage includes the cost of cremation.
- Family Transportation Benefit- This policy provides coverage for the cost of transportation of the remains of the Insured Person(s) from the place of death to a hospital, the Insured’s home, cremation ground, or burial ground. The policy pays towards the cost of transportation upon a death claim.
- Child Education Bonus- In case of accidental death or permanent total disability, an additional benefit payment is made to the dependent child below the age of 19 years. The payment is made towards the child's education expenses.
- Loss of Income Cover- The policy provides coverage for loss of income due to temporary or permanent disability caused by an accident. This coverage can be availed as a rider or add-on to the policy.
- No Claim Bonus- The policy offers a No Claim Bonus (NCB) to policyholders who do not make any claims during the policy period. The NCB is a discount on the premium payable for the next policy period.
- Worldwide Coverage- The policy provides coverage for accidental death, disability, and medical expenses anywhere in the world, subject to certain conditions and limitations. This is useful for people who frequently travel abroad for business or leisure.
- Emergency Ambulance Charges- The policy covers the expenses incurred on ambulance services in case of an accident. It also covers the cost of transportation to the hospital or a medical facility.
- Mobility support coverage- GPA policy also includes mobility support coverage, which provides financial assistance for the purchase of mobility support devices after an accident. Insured individuals can claim reimbursement for the cost of items such as wheelchairs, artificial limbs, crutches, dentures, and spectacles.
- Personal Accident Cover for Domestic Staff- The policy can also be extended to cover domestic staff such as drivers, housekeepers, and cooks who are employed by the insured person.
- Premium Waiver- The policy may provide a waiver of premiums in case of permanent disability or death of the insured person.
- Automatic Coverage for Dependents- The policy can also cover the spouse and dependent children of the insured person.
What are some of the important exclusions and considerations to keep in mind when selecting a Group Personal Accident insurance policy?
It's important to keep in mind that not all accidents may be covered under a GPA policy. In fact, there are several critical exclusions to keep in mind when purchasing a GPA policy.
It is crucial to understand the exclusions of your Group Accident Insurance Policy (GPA) to ensure that your company has the right coverage in place when your employees need it the most. Not being aware of exclusions can have severe consequences, leaving your employees and their loved ones vulnerable to financial hardship in case of an accident.
More articles like this: The Beginner's Guide To Choosing The Right Group Health Policy For Your Employees
What is not covered in your GPA policy? Critical exclusions to keep in mind while buying a GPA policy
- Intentional Self-Injury: A GPA policy does not cover accidents that are caused intentionally by the insured person. For example, if a person injures themselves intentionally, the policy will not provide any financial coverage.
- Pre-existing diseases: If the insured person had an injury or medical condition prior to purchasing the policy, the policy will not cover any related injuries or death. It is important to disclose any pre-existing conditions to the insurer when applying for the policy.
- War and Terrorism: GPA policies do not cover accidents that are a result of war, terrorism, or any other act of violence. However, there may be some policies that cover such events, but they may come at a higher premium.
- Under the Influence of Alcohol or Drugs: Accidents that occur when the insured person is under the influence of alcohol or drugs are not covered under a GPA policy.
- Hazardous Activities: If the insured person is participating in hazardous activities such as skydiving, bungee jumping or rock climbing, the policy excludes coverage for any resulting injuries or death.
- Occupational Injuries: If the insured person is injured while on the job, their employer's worker's compensation policy will typically cover the related expenses and not the GPA policy.
- Non-Prescribed Drugs: If the insured person uses non-prescribed drugs and is injured as a result, the policy will not provide coverage for any resulting injuries or death.
- Nuclear Accidents: Accidents caused by nuclear energy are typically excluded from GPA policies.
- Engaging in Criminal Activities: If the insured person is injured while engaging in criminal activities, the policy will not provide coverage for any resulting injuries or death.
- Mental or Emotional Disorders: Injuries or accidents caused by mental or emotional disorders will not be covered by a GPA policy.
- Participation in Professional Sports: If the insured person is injured while participating in professional sports or competitions, the policy will not provide coverage for any resulting injuries or death.
- Genetic Disorders: Injuries or accidents caused by genetic disorders will not be covered by a GPA policy.
- Pregnancy or Childbirth: Injuries or accidents resulting from pregnancy or childbirth will not be covered by a GPA policy.
- Sexually Transmitted Diseases: Accidents or injuries caused by sexually transmitted diseases (STDs) are not covered under a GPA policy. This may include STDs such as HIV, syphilis, or gonorrhoea.
- Non-Accidental Medical Treatments: If an injury or accident is caused by a non-accidental medical treatment such as cosmetic surgeries or elective procedures, it may not be covered under the GPA policy.
Reading the policy document thoroughly is essential to understanding the exclusions of your company’s GPA policy. Insurance providers are legally obligated to provide policyholders with a copy of the policy document that outlines the terms and conditions of the policy. Carefully reviewing this document will help your employees understand what is covered and what is not, and ensure that they have the right coverage in place.
By now you must be familiar with the importance of having a Group Personal Accident Insurance policy for your team. But don't forget that another essential policy to have in place is a Group Health Insurance Policy. This policy provides your team with access to quality healthcare without any interruption. To make the process of renewing your policy easier for you, Nova Benefits has put together a comprehensive guide on how to renew your Group Health Insurance Policy.
Continue reading: Guide to Renew Your Group Health Insurance Policy
Who can buy a GPA Policy?
A GPA policy can be purchased by any individual or organisation, such as a company, school, or non-profit organisation, to provide financial protection in the event of an accident. In the case of a group policy, the policyholder is typically the organisation, and the coverage extends to its employees. Some insurance companies also offer individual GPA policies that can be purchased by individuals to provide personal accident coverage.
Book a consultation call with personal insurance experts at NovaX to know more.
How can Nova Benefits help you with your GPA insurance?
Are you tired of sifting through complicated policy documents and struggling to find the right Group Personal Accident Insurance for your team? Look no further than Nova Benefits, where we make finding the perfect policy easy and stress-free.
Nova Benefits can help you find the right Group Personal Accident Insurance policy that suits your needs and budget. Here are some top reasons why:
- We offer free quotes negotiated from 5+ insurers for your team, ensuring you get the best possible price and coverage.
- Our comparisons are unbiased, giving you a clear and transparent view of your options.
- Our team of experts can provide personalised guidance and support to help you make an informed decision.
We can also help you identify the unique risks your employees face and recommend coverage accordingly.
Take the first step towards securing your team's future. Book a free consultation call with us today and let our experts help you find the best policy that provides financial protection and peace of mind. Simply click the button below to schedule your call now.
- What is the waiting period for a GPA policy?
The waiting period for a GPA policy varies from insurer to insurer. It typically ranges from 15 days to 30 days from the date of policy issuance.
- Are there any age restrictions for GPA policy coverage?
Yes, there may be age restrictions for GPA policy coverage. Generally, the minimum age limit is 18 years, and the maximum age limit is 65 years.
- What is the premium amount for a GPA policy?
The premium amount for a GPA policy depends on various factors such as the number of employees, nature of work, age group of employees, etc.
- Can dependents of employees be covered under the GPA policy?
Yes, the dependents of employees can be covered under the GPA policy.
- Can a GPA policy be customised?
Yes, GPA policy can be customised as per the needs and requirements of the employer.
- How long does it take to settle a claim under a GPA policy?
The time taken to settle a claim under a GPA policy varies from insurer to insurer. It typically takes around 7 to 14 working days, provided all the required documents are submitted.
- Will I still have a GPA policy if change my job?
If you change your job, your GPA policy will no longer cover you. However, you can opt for an individual policy or transfer your GPA policy to your new employer.
- Can I claim for more than one injury under a GPA policy?
Yes, you can claim for more than one injury under a GPA policy, subject to the sum insured and the terms and conditions of the policy.
- What is the maximum coverage limit offered under a GPA policy?
The maximum coverage limit varies depending on the insurer and the policy. Generally, it ranges from Rs. 10 lakhs to Rs. 1 crore.