Group Personal Accident (GPA)
Group Personal Accident (GPA) Insurance policies are the policies suitable for organizations/companies, who wish to ensure their employees against possible perils like Accidental Death & Dismemberment, Permanent Total Disability (PTD), Permanent Partial Disability (PPD) etc. They look for a Group policy to cover all their employees under a single policy, which will be cost effective as they will get a group discount when compared to Individual Personal Accident policies. In today’s business environment, where companies are competing for quality manpower, providing comprehensive Employee Benefits are critical to retain employee talent. Hence companies are ensuring Comprehensive coverage for their employees on a 24 hour worldwide basis under the Group Personal Accidents plans.
Since it is a 24 hour worldwide coverage, employees are also covered when they are on vacation or not engaged in any business related engagement…they are covered even when they travel abroad or anywhere in India on business and leisure.
What are the benefits under a typical GPA policy?
Most GPA policies cover the following benefits:
Capital Benefits : Accidental Death / Accidental Dismemberment . Permanent Total Disability and Permanent Partial Disability
Regular Benefits: Accidental Medical Expenses (Fixed or Variable) / Weekly Indemnity (Temporary Total Disability)
Add Ons: Educational Allowance / Repatriation of Remains / Home & Vehicle Modification / Family Transportation, Burns, Broken Bones etc
- Accidental Death : Death of the insured as a result of an accident
- Accidental Dismemberment (AD) : Fixed % of Sum Insured amounts of the policy will be paid out if the covered employee loses a bodily appendage, sight or hearing because of an accident. Additionally, AD generally pays benefits for the loss of limbs, fingers, toes, sight and permanent paralysis. The types of injuries covered and the amount paid vary by insurer and package, and are explicitly listed in the terms and conditions of the policy.
- Permanent Total Disability : Event of disablement of permanent, total & irrecoverable nature because of which the person cannot be gainfully employed in his current occupation or the occupation for which they are employed for)
- Permanent Partial Disability : Accident resulting in disablement of permanent but partial & irrecoverable nature like actual loss of thumb, forefinger, toe etc
- Accidental Medical Expenses : Inpatient or outpatient medical expenses incurred by the insured following an accident for treatment
- Weekly Indemnity (TTD) : Temporary disability arising out of an accident, preventing an employee from attending office, policy pays a weekly benefit amount upto a period of 52/104 weeks.
- Education Allowance: – In case of an accident death, % of the principal sum insured is paid towards the education benefit of the children of the insured
- Family Transportation: – As a result of an accident and the insured is confined in the hospital due to an accident outside his residence, actual transportation expenses of the immediate family member to reach the insured is reimbursed
- Repatriation of remains: In the event of unfortunate death of the insured, the cost of funeral services, embalming, coffin charges etc will be reimbursed
- Home/ Vehicle Modification allowance: In-case of PTD reimbursement to the insured will be made towards the cost of modifying his/her house or vehicle to overcome disability
So what are the some of the accidents covered under a regular GPA policy?
- Road / Rail / Air accidents
- Accident caused by machinery while at work
- Murder/attempted murder
- Burns from Fire
- Natural calamities / House and building collapse
- Drowning while attempting to swim
- Animal/Snake Bite
- Accidental Falls
As per the Government of India statistics of deaths due to accident, the following were the major contributors :
Offering GPA to so many different groups has resulted in a satisfactory growth of this line of business over the past years…according to IRDAI, GPA business is estimated to be around Rs.2800 crores and growing at around 20% YOY…while IRDAI doesn’t publish GPA and IPA numbers separately, based on feedback from industry insurers, it is estimated that GPA is currently around 65% of the overall industry Personal Accident numbers.
Group personal accident insurance is a comprehensive cover that can be bought for large as well as small groups. The premium per lac of sum insured differs from group to group and the factors influencing the discount offered for the GPA policy are:
- Size of the group
- Occupation of the insured members
- Sum Insureds of the insured members
- Graded Sum Insured for each category of employees
- Flat Sum Insured for all employees of the company
- Sum Insured as a multiple of the employee’s salary
- Loss history in earlier years for the organization
Group Personal Accident policies are not only offered to employee employer groups…Policies can also be purchased by the following organisations:
- Banks – for their salaried customers, credit card holders
- Financial Distributors (Mutual Funds, FD) – for their customers
- Home Mortgage Companies – for their home loan customers as Credit Shield
- Schools / Colleges – for their students & faculty
- Telecom Companies – for their customers
- Construction Companies – for their skilled, semi skilled and unskilled workers, both on roles and off roles
- Taxi Operators – for their drivers
- State and Central Governments – for various categories of persons
What are some of the exclusions under the GPA policy?
Usually, GPA policies don’t offer coverage in the following cases:
- Natural death
- Preexisting conditions
- Injury caused while under the influence of drugs or alcohol
- Intentional injury or intentional negligence
- Violation of law
- War and nuclear perils
- Pregnancy or childbirth