According to the International Labor Organisation, around 2.3 million employees globally lose their lives every year due to workplace-related accidents and diseases. This statistic has acted as an alarm for most employers worldwide to offer Group Personal Accident Insurance to their employees.
Employers must offer this group plan to their employees who either commute to work daily or work in an environment that is exposed to risks of hazardous chemicals or heavy plants and machinery. It is not compulsory for employers to provide a group personal accident plan to employees; however, it is their moral duty to do so as the employees work for the organisation and become exposed to these risks because of the nature of the work.
Besides helping them meet their moral obligation, a group accident insurance plan also helps employers establish a bond with employees where they feel valued and cared for, which ultimately helps them enhance the business profits and improve the work culture.
What is Group Personal Accident Insurance?
A Group Accident Policy is an insurance plan that provides coverage to all employees under a single plan against the financial risks which may arise from an accident. It provides financial assistance in case of accidental death of the employee or if they meet any disability (permanent/temporary/total/partial) or suffer from a critical illness due to the accident. The coverage provided under the policy helps the family of the employee to remain financially stable in times of grief.
Importance of Group Accidents Insurance For Employees
A personal accident plan offers the following benefits to employees:
- Financial Stability – A group personal accident plan provides an assured sum known as the death benefit in case the employee dies in an unfortunate event to help the family of the deceased employee remain financially stable. In case the employee suffers from a disability due to an accident that impairs their ability to earn, the plan provides a weekly compensation to help them meet their financial obligations.
- Peace of Mind – Due to the availability of an assured financial net during unforeseen times, the employees can enjoy peace of mind knowing that they and their loved ones will have financial backing in case they pass away or suffer from a disability in the future.
- Child Education Allowance – A group personal accident plan provides an allowance for supporting the education of the employee’s children in case of their accidental death or disability.
Importance of Group Accidents Insurance For Employers
There are a variety of benefits which we as employers can avail of by providing a group personal accident policy to employees:
- Increased Employee Motivation – When as employers, we provide a Group Personal Accident Insurance plan to employees, we convey to them that we care for them. This helps in increasing the employees’ motivation to work for the company.
- Increased Productivity Levels – When the employees are motivated to work, this gets translated into their efficiency and increases their productivity levels. This helps employers enjoy enhanced revenues and improved profit margins.
- High Employee Retention Rates – When we offer a group personal accident plan to employees, we get a chance to connect with them emotionally as they know that in difficult times the company will be there to support them and their families. This makes them feel valued and less prone to leaving their job. As a result, we enjoy high employee retention rates and reduced recruitment costs.
- Feeling of Belongingness Among Employees – When employees feel valued, they develop a connection with the organisation and feel belonged to the workplace. This gets reflected in their actions and decisions, be it for hiring the right talent for the company or taking cost-effective decisions. This helps the organisation function in a lean and optimal manner.
- Helps Attract Good Talent – When employees feel happy at their workplace, they spread the good word about the company via their interactions with their family and friends or via social media platforms like LinkedIn. This helps employers build goodwill for the company in the job market and attract good talent organically, without spending much on recruitment efforts.
- Tax Benefits – The premium that we pay as a premium towards a group personal accident plan qualifies as a business expense. And thus, it helps employers claim a tax exemption under Section 37 of the Income Tax Act.
A Group Personal Accident Insurance is one of the most cost-effective ways of conveying to employees that the organisation cares for them. It does not help employers be there with them and their loved ones during difficult times but also helps them improve the business profits by increasing their motivation and productivity levels. This also helps them maintain a positive work culture and attract and retain good talent.
Besides offering insurance coverage to employees, they should be encouraged to get a
Digital Health Card with which they can keep an electronic database of their medical conditions and history. A digital health card comes in handy and is super useful when travelling for work and suffering from a medical condition. The digital database helps doctors identify if the employee’s symptoms are linked to any past medical condition or not and provide them with the required medical treatment quickly. The database can only be accessed by employees and health workers.