The Personal Accident Insurance covers accidental death and injuries 24×7 and is worldwide. However, the policy does not cover death due to natural causes or sicknesses. The insurance afforded by a group life is to cover against natural and accidental death. The group term assurance policy can be bought as an additional fringe benefit to the staff. Such policy creates contentment amongst staff giving them peace of mind that their dependants are looked after due to an untimely death caused by natural causes, sickness or due to accidental nature.
The policy, as mentioned above covers natural and accidental death and could be extended to include Critical Illness as well. The critical illness portion pays on diagnosis irrespective of death. Some insurers include Hospital Cash cover of a specified amount per day in hospital irrespective of the nature of illness or surgery. This insurance is very cost effective and the premiums are based on each person’s age. The sum assured could be for a specific amount per person or based on maximum 60 times the salary of a person.