Group personal accident
Group Personal Accident is an employee benefit programme offering financial protection against unforeseen events such as injuries, disabilities, or death due to an accident. Whether the accident happens at workplace or not, the employee will get compensation for the medical expenses incurred. However, Group Personal Accident only offers accidental coverage, which means, death due to natural causes, self-inflicted injuries, injuries or death due to substance abuse, war-related activities, are not covered.
Group term life
GTL insurance is a death benefit offered to employees. If the insured employee dies during the service tenure, the employer will provide compensation up to the sum assured to the nominee. It covers both natural and accidental deaths.
How to reduce Group Personal Accident rate?
If your company has offered both Group Term Life and Group Personal Accident coverage and you want to reduce GPA insurance rate, here is how you can do it:
Since both policies cover accidental death coverage, you can remove accidental death benefit coverage from GPA insurance to lower the costs. As this is a critical policy benefit under Group Personal Accident, you can save 25%-40% on the cost of Group Personal Accident insurance by removing this benefit.
Conclusion
As both Group Personal Accident and Group Term Life policies cover accidental death benefits, it doesn’t make sense to have dual coverage as there is cost involved. So, if an employee is covered under both the policies, opting out of accidental death coverage from Group Personal Accident can lead to significant savings on Group Personal Accident insurance premium.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.