Keerthika, Narmatha,

Muthukumar, Murugan ,Azar &

Team 3

MEANING
Group
Insurance
involves
providing
insurance to a group of
individuals, through a
single policy contract.
It is used as a human
resources
tool
by
corporate employers to
ensure
employee

Group insurance policies offer life insurance

protection to all types of groups such as:

-Employer-employee groups
-Professionals
-Cooperatives
- Weaker sections of society, etc
In group schemes, the whole group of persons

is considered as a single unit for insurance

purposes and are covered under master
policy

The employer will receive the Master

policy
and
all
the
members
(Employees) will receive Certificate of
Insurance, which summarizes the
coverage terms and explains the
members right under the contract.
The most important condition for
granting a group insurance policy is a
requisite for a minimum group size and
a minimum participation number

TYPES OF GROUP INSURANCE

PLANS

NONCONTRIBUTORY

CONTRIBUTORY

TYPES OF COVERAGE FOR GROUP

INSURANCE

COST OF EMPLOYEE BENEFITS

FOR AN EMPLOYER
TYPICAL BENEFITS FOR A $50,OOO SALARIED
EMPLOYEE
-LIFE INSURANCE $150
-HEALTH COVERAGE $ 2000-3000 ( SINGLE PERSON)
$6000-7200 (FAMILIES)
-LONG TERM DISABLITY INSURANCE- $ 250
-DENTAL PLANS, RETIREMENT PLANS-$240-650
THE COSTS FOR BASIC SALARY, EMPLOYMENT TAXES AND
BENEFITS ARE TYPICALLY IN THE 1.25 TO 1.4 TIMES BASE
SALARY RANGE. THIS MEANS THAT A $50,000 EMPLOYEE
SALARY MIGHT REALLY COST THE COMPANY $62,500$70,000.
RESEARCH ARTICLE- LEIGH RICHARDS

HDFC ERGOS GROUP INSURANCE

Tailor made insurance
Solution for a wide variety of industries
Comprehensive coverage
Assured service

KEY PRODUCT: GROUP ACCIDENT &

HEALTH
Group Travel Insurance
Group Medical Insurance
Group Personal Accident Insurance

LIC GROUP SCHEMES

Group
Group
Group
Group
Group
Group

Term Insurance Schemes

Insurance Scheme in Lieu of EDLI
Gravity Scheme
Savings Linked Insurance Scheme
Leave Encashment Scheme
Mortgage Redemption Assurance
Scheme
Group Critical Illness Rider

FEATURES OF GROUP INSURANCE

SINGLE POLICY CONTRACT.

RELATIONSHIP.
OWNER OF THE INSURANCE-EMPLOYER.
PREMIUM PAYMENT.
FREE TO MOVE IN OR OUT.
CHEAPER COVERAGE.

Business Principles
of Group Insurance

Group Insurance Contracts:

Difference - there is a single insurance contract,
called a master group insurance contract.

Certificate of
Insurance
Insured group members are not parties to the master
group insurance contract, do not
participate in the formation of the contract, and do not
receive individual copies of the
contract.
This document, known as the certificate of insurance,
describes
a) The coverage the group insurance contract provides
and
b) The group insureds rights under the contract.

Free Cover Limit or No Evidence

Limit

No medical check
up needed unto a
limit

Group Insurance Policy

Provisions
Certain provisions are included in every
group insurance policy, whether it provides
life or
health insurance coverage

These standard policy provisions define which

group members are:
Eligibility for group insurance coverage,
Identify the policys grace period,
Establish when the policy and a group
members Coverage become incontestable,
Govern when the group insurance policy
terminates
Wwhen a group insureds coverage terminates

Eligibility
Requirements
Group insurance policies are permitted by law
to define eligible employees .

Types of Coverage for Group

Insurance
A number of group insurance schemes have
been designed for various groups.
These include employer-employee groups,
associations of professionals (such as doctors,
lawyers, chartered accountants etc.), and
members of cooperative banks, welfare funds,
credit societies and
weaker sections of society.

Four basic types of

coverage
1.
2.
3.
4.

Life cover
Pension cover
Medical cover
Disability cover

Life Cover

Group life insurance covers the life of each

individual within the insured group.

A single policy is issued for the entire group

and the premium collected is from the group

owner.

Accident Cover
The insurance cover may also cover for

accidents, which is in the form of a rider that

is attached to the base life plan at the policy
contract level.
a. Death by accident.
b. Permanent partial disability.
c. Permanent total disability
d. Dismemberment.

Pension Cover
An organization today, has not only to man

the various positions with competent and

trained personnel but also has to create an
environment wherein they can give their best
and derive a sense of well-being, a sense of
fulfilment and security and take pride in their
continued association with the organization

Medical Cover
Critical Illness
Hospital Cash & Mediclaim

GROUP INSURANCE
products in india

Group Insurance Products in

India
1. Group Leave Encashment Scheme

The Group Leave Encashment Scheme (GLES)

has been designed to provide funding for
liabilities of all employers. A group insurance
cover by way of a flat sum assured is also
provided for the employees.

2. Group Insurance Scheme in lieu of EDLI

All employees to whom the Employees
Provident Fund and Miscellaneous Provision
Act,1952 applies, have a Statutory liability to
subscribe to Employees Deposit Linked
Insurance Scheme, 1976 to provide for the
benefit of Life insurance to all their
employees.

3. Social Security Scheme

LIC maintains half the premium amount drawn

from the Social Security Fund while the

balance 50 percent is collected from a
designated nodal agency. This nodal agency
receives contributions from the State
government and / or its beneficiaries.

4.Voluntary Retirement Scheme

The Voluntary Retirement Scheme (VRS) is

designed to provide for payment of annuity,

depending upon the salary and the length of
the service period of the insured employee.
The scheme ceases at the normal retirement
age.

5.Group Gratuity Scheme

Gratuity is one of the statutory liabilities

incurred by almost all employers and accrued

to their employees. Gratuity is calculated by
the number of years of service rendered by
the employee for his employer.

6.Group Superannuation Scheme

The Group Superannuation Scheme is

designed as a pension scheme to the

employees after their retirement from active
service. The employer alone or jointly
arranged with the employees can finance this
scheme.

GROUP INSURANCE
PRODUCTS

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Group insurance products

insurance companies

offered by Life

Group Term Life Insurance Schemes

Group Savings Linked Insurance Schemes (GSLI)
Group Credit Life Insurance and
Group Health Insurance
Group Dental Insurance
Worldwide Travel Group Insurance
Group Short Term Disability Insurance
Group Long Term Disability Insurance

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Group Term Life Insurance

Group (Term) Insurance Scheme provides life insurance

protection to groups of people.

Administration of the scheme is on group basis and cost is
very low.
Group insurance schemes that provide uniform cover can
also be granted to associations of professionals such as
Doctors,
Lawyers, and
Chartered Accountants etc
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Group Saving Linked Insurance

The Group Savings Linked Insurance Scheme (GSLI)

offers insurance cover along with an element of savings.

The contributions under this scheme are deducted from
the monthly salary of the members.
This scheme is allowed only to selected EmployerEmployee groups such as
Public sector corporations
Reputed private sector companies which maintain
accurate records and files of their employees
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Group Credit Life Insurance

The Group Credit Life Insurance plan provides life cover

for a group of employees who are borrowers from the

same employer, by paying a lump sum towards repayment
of loan amount on the death of employee.
Group Credit Life offers insurance against the following:
Mortgage Loans
Personal Loans
Credit Cards
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Group Health Insurance

All of the individual types of plans can be purchased

on a group basis.
Only full time employees may participate in these

plans, as determined by the insurance company.

Adequate participation of employees.
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Group Dental Insurance

Coverage is generally provided for
Preventive services, (cleanings, x-rays, and
exams),
Minor restorative services (fillings), and
Major restorative services (crowns, bridges,
root canals).
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Worldwide Travel Group Insurance

Worldwide Travel insurance include travel assistance for

medical emergencies and coverage including

ambulance services
Dental services
Diagnostic services
Hospital accommodation
Meals and Accommodation
Medical Appliances
Physicians, and Surgeons.
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Group Term Disability Insurance

There are basically two types of Term disability Insurance:
Short Term Disability Insurance
For short term coverage is generally provided upon the

first day of an accident, or upon the eighth day of an

illness for a period of 13,26, or 52 weeks. Usually benefits
are for 66 2/3% of salary.
Long Term Disability Insurance.
For this insurance coverage is provided for longer periods
of time than with Short Term Disability, typically two
years, five years, to age 65 or for life.
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