Group Personal Accident Insurance
- What is a GPA Insurance Policy?
A Group Personal Accident Insurance (GPA) is a type of insurance that protects a group of people financially in the case of any unforeseen accidents that result in death, fatal injury, or disability.
Accidents can occur at any time, and can have unexpected health consequences. Thus, a GPA policy comes with certain in-built features to cover employees in case an accident leads to their death or disability which can affect their income. It provides a measure of financial protection for them or their dependents.
Like a GMC, the premium of a GPA is also borne by the employer, or it is contributed to from an employee’s salary.
- What is Covered in a GPA Policy?
- Total or Partial Disablement – If an accident causes partial, total, or permanent disabilities (like loss of sight or limbs) it provides financial coverage.
- Accidental Death – In the worst case of accidental death, it provides financial protection for dependents.
- Ambulance and Transportation Expenses– There is also optional coverage for ambulance charges and transportation expenses.
- Hospitalization Expenses– It provides coverage for hospitalization expenses like room rent and daycare procedures when they are due to an accident.
- Benefits for Children – In case of permanent disablement or death, it covers certain benefits for dependent children, such as costs of education or marriage expenses.
| Parameters | Group Medical Cover | Group Personal Accident Cover |
| What is it? | It covers hospitalization expenses and illnesses faced by employees and their dependents. | It covers expenses resulting from accidents that lead to injury, disability, or death. |
| What is covered? | The policy covers hospitalization, pre-existing illnesses, pre-and post-hospitalization expenses, daycare procedures, maternity expenses, newborn baby cover, and more. | The policy provides financial coverage against death and disabilities caused by an accident. |
| What is excluded? | Generally, this policy excludes medical expenses that are a result of suicide, self-injury, cosmetic treatments, alcohol or drug abuse, or HIV/AIDS. | This policy generally excludes expenses relating to natural deaths, accidents resulting from illegal activities, self-injury, suicide attempts, pre-existing diseases, and alcohol abuse. |
| What is the scope? | Since it covers a wide range of hospitalization expenses and illnesses, it has a broader scope. Additionally, a personal accident cover can also be included as an add-on. | This kind of policy only covers expenses resulting from accidents, so it has a comparatively smaller scope. |
| Who is covered? | It covers employees and their dependents, i.e., spouse, children, and parents. | It generally only covers employees of the organization. |
| Can it be customized? | Yes, it can be customized by the employer based on employee needs. | This cover is non-customizable. |
| Who should get this policy? | Group medical cover is suitable and necessary for all organizations, irrespective of the nature of business. | GPA is an important component and suitable for businesses that involve risk of accidents, for example, construction and travel businesses. |
Both Group Medical Cover (GMC) and Group Personal Accident (GPA) Insurance can do a great deal to help with employee satisfaction and talent retention, so it is important to know what they are and make the right choice.
So whether you’re an employee looking to understand what’s out there, or an employer making a choice for your employees, hopefully now you can make a more informed decision.