10 Reasons to Buy Group Personal Insurance for your Employees


Profits and revenue figures aren’t the only measures of success for an organisation. It is also evaluated by how satisfied and happy its workers are. As of today, companies even have to adhere to certain health and safety protocols within their workplace for their employees. A healthy work environment goes a long way in an organisation’s success. As such, many companies offer insurance plans for the health of their employees. It may be group personal accident insurance or any other group health insurance. In this article, we will learn what group personal insurance is and why employers should invest in it.

Group Personal Insurance: What is it?

Unlike individual insurance, where an individual takes out an insurance plan to protect himself against unfortunate circumstances, group health insurance is taken out by the employers for their employees. The employees do not pay anything for this insurance. Employees are entitled to the benefits of this insurance as long as they are employed with the organisation. The insurance benefits expire when the employee leaves or retires.

Group personal insurance may cover anything from temporary medical conditions to permanent disabilities. Even ambulance expenses can be reimbursed. Thus, any financial stress the employee may suffer as a result of a health injury ? sustained while working for the company is taken care of. As a result, if an employee suffers paralysis while on the job, the group personal accident insurance will not only cover all medical expenses but also make sure the dependents ? of the employee are financially protected.

What are some reasons to buy group personal insurance for the employees?

The primary focus of insurance plans is to ensure the health and financial security of the insured. Among the benefits of group health insurance are:

  1. Employee’s loyalty

One of the positive effects of purchasing group insurance is a more loyal workforce. Being taken care of by their employers is one of the major factors that contribute to workforce happiness. As a result, offering them a financial security benefit in case of any health emergencies ensures their loyalty over the long run.

  1. Cost-Effective

In addition to gaining employee loyalty, employers also gain cost advantages. In contrast to buying individual policies, group insurance plans offer employers better discounts and lower costs on insurance policies. Since this is a bulk purchase, insurance companies offer attractive rates as well as provide a professional expert to assist the company on any insurance-related queries.

  1. No medical checkups or waiting period

When purchasing a group personal accident insurance policy, employees are not required to undergo medical screenings. As a result, employers do not have to worry about employee medical checks. For the employee to be eligible for the insurance, they only need to be employed by the organisation. Therefore, even those with prior health conditions are covered by this insurance.

  1. An easy claim settlement process

An insurance company’s claim settlement process determines how good it is. That’s why group personal insurance plans are so valuable. In contrast to individual insurance policies, employees only need to provide medical bills and simply contact HR or the appropriate department. Sometimes, the settlement is cashless ? also. This quick disbursal of claims builds the employer-employee relationship further.

  1. Higher coverage

The group personal accident insurance plan covers everything from permanent disability, partial disability, temporary disability, and injuries to ambulance services. Thus, employers don’t have to worry about taking out multiple insurance policies. One policy covers all medical situations. Moreover, insurance companies offer customisation benefits as per the needs of the employers.

  1. Easy premium payouts

When an employer purchases a group insurance plan, they have the option of choosing how they want to pay the premiums. Employers have the flexibility to determine how frequently to pay premiums, whether quarterly, half-yearly, or annually.

  1. Tax benefits

After the pandemic, the government made group personal insurance mandatory for all organisations. In return, they can claim tax benefits under the Income Tax Act for the premiums paid. Startups, sole proprietors, small businesses, public companies, and private companies all qualify for these tax benefits.

  1. Goodwill

The success of an organisation is measured by how happy its employees are. By doing so, the organisation not only fosters a loyal relationship with its employees but also increases the goodwill of the company in the public eye.

  1. Lower financial liability ?

Organisations are responsible for the health of their employees. Therefore, any compensation for hospitalisation or medical expenses on account of accidents increases an organisation’s financial liability. As a result, taking group personal accident insurance protects the organisation from these financial liabilities.

  1. Better productivity ?

In addition to financial security, group personal insurance also provides tools to motivate employees to maintain a healthy work-life balance. As a result, the employee’s morale and productivity improve.

Final thoughts

After you read the above article, you will have a fair understanding of the advantages of group health insurance, both for employers and employees. Some policies even allow employees to add additional riders if they need additional coverage. Thus, research all the benefits carefully before choosing.

For example, Plum Insurance offers a customised, comprehensive health insurance plan with an electronic claims process. Employees gain access to a detailed wellness plan including health checkups, mental wellness programs, including hassle-free claims settlements. Personalise your group health insurance policy today.

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