Group insurance is a type of insurance in which a group of members are covered under a single insurance plan. The group insurance is usually taken by the employers to cover their employees. Group insurance can also be extended to cover the family members of the employees working in the organization. The group insurance is usually provided by the startup employers as a part of employee benefits to the employees. The best type of group insurance plan that is needed for a startup is the one that can provide the benefits that are mentioned below:-
- Group Mediclaim insurance: The first type of group health insurance that a startup should have is the group mediclaim insurance policy which covers the medical costs of the employees due to hospitalization resulting from accident or illness. The group mediclaim insurance can be extended to cover the family members as well on payment of additional premium. Group mediclaim insurance covers the treatment related expenses such as inpatient hospitalization, outpatient hospitalization, daycare hospitalization, ambulance expenses etc.
- Group Personal accident insurance: The other important type of group insurance that should be taken by the startups is the group personal accident insurance. Group personal accident insurance plan covers the employees against death and disability arising out of accidental means. The claim amount would be paid lump sum in case of death or disability of the employee. Group personal accident policy is a benefit policy unlike the group mediclaim insurance policy which is an indemnity based policy. Group personal accident insurance is very cheap when compared to the group mediclaim insurance policy and the two policies are usually taken together by the customers.
- Workmen’s compensation insurance: Workmen’s compensation insurance policy is a type of liability insurance policy which is taken by the employers to cover their legal liability in case of injury to the employees at the workplace or during the course of employment. The policy provides compensation to the employees under the employee compensation act., 1923 by assuming the legal liability of the employees. Workmen’s compensation policy covers the death, disability and medical expenses of the employees arising out of employment or at the workplace as per the limits mentioned under the workmen compensation act. The policy also covers the medical expenses of the employees due to an injury or illness airing at the workplace or during the course of employment.
- Group term life insurance: The group term life insurance policy provides compensation to the nominee of the employees in case of death of the employees at the workplace or during the employment. The policy covers the death of the employee due to any means including suicide after a period of time. Group term life insurance policy is usually taken for a period of one year after which it would be renewed. Group term life insurance policy is a benefit based policy in which the entire sum assured would be paid out lump sum in case of death of the policyholder.