What is a group insurance Scheme?

Group Insurance Scheme is life insurance or Health Insurance protection for groups of people in the same contract. This scheme is ideal for employers to cover their employees and retired employees. Also, informal groups like Cultural Associations, societies, etc. can go for group insurance for their members. These plans may be in the form of group life insurance, group health insurance, group travel insurance, or group personal accident insurance.

Group insurance plans cover several people in the same contract and such a plan provides the same level of insurance coverage to all members of a group eliminating the need to buy a separate insurance plan for each member. Normally, formal group insurance managed by the employers covers not only the employees/retirees of the group but also their spouses, children, and dependent parents. However, the existing group insurance facility available to bank retirees covers only the members and their spouses.

As risk spreads over a large number of people, a group insurance plan provides standardized coverage at competitive premium rates. The insurance premium is directly dependent on the base policy amount/ top-up policy amount /super top-up policy amount etc., and the risk covered.  This means that the coverage is the same for all members of a group irrespective of socioeconomic status, age gender, etc. Premium is charged to the members or can be paid by the Management.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a purchase.

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