Group insurance coverage is a novel product which affords life insurance coverage safety to a gaggle of individuals beneath one coverage contract.
These insurance policies are utilized by employers, associations, societies and so forth., they usually assist folks take pleasure in life insurance coverage advantages at very low prices because of the economies of scale accessible when insuring giant teams of individuals. Life Insurance coverage Company of India (LIC) has the next schemes accessible for teams:1 Life insurance coverage and retirement schemes for teams
(i) Group time period insurance coverage schemes
(ii) Group insurance coverage scheme in lieu of EDLI
(iii) Group essential sickness rider
(iv) Group saving linked insurance coverage scheme retirement schemes
(v) Group superannuation scheme
(vi) Group gratuity scheme others
(vii) Group mortgage redemption assurance scheme The above schemes embody life insurance coverage and retirement plans. Workers are the beneficiaries of those schemes and so these plans are additionally referred to as worker profit plans.
Merchandise just like the group mortgage redemption plans can be found for teams of people taking loans from a monetary establishment. Particular person insurance coverage are additionally marketed to staff and employers. These are additionally mentioned on this Chapter.
Worker advantages and different group insurance coverage merchandise represent a significant portion of enterprise for all times insurance coverage corporations. These merchandise are usually marketed immediately and intermediaries are usually not used for promoting group merchandise. Decrease distribution prices and potential of huge contracts make this a profitable market.
Employers voluntarily supply many group insurance coverage and pension advantages to their staff because of tax advantages often related to such merchandise.
The worker advantages merchandise works in two methods. In some circumstances, the employer pays all the or a part of the price of insurance coverage or pension. In different circumstances, the employer units up the profit plan beneath which an worker can elect to take part by paying the complete price of his protection. Some employer-provided insurance coverage advantages for conditions like demise, accident, sickness or retirement are part of statutory necessities mandated by regulation.